On 23 November 2018 ITAC initiated an anti-dumping investigation on polyethylene terephthalate (PET) imported from the People’s Republic of China (PRC). The product is imported under tariff subheading 3907.6. There are currently anti-dumping duties on PET imported from Taiwan (75%), India (54.1%) and Korea (19.7%).

The current application was lodged by Safripol, a division of Kap Diversified Industrial (formerly known as Hosaf). Safripol accounts for 59.6% of the SACU production volume of the subject product. The application by Safripol is supported by Extrupet, Plastics SA and Petco.

It is alleged that the product (PET) is being dumped in the Southern African Customs Union (SACU) market, causing material injury and threatening to cause material to the SACU industry concerned. In the last 3 years (July 2015 to June 2018), the import volumes out of China have increased from 54 591 tons, to 136 536 tons, an increase of 150%. The value of the imports for the most recent 12 months was R1.9bn, an increase of R1.2bn from from R711m for the first year.

According to the gazette, the applicant submitted evidence to show that there is price suppression and price depression. The applicant’s information also indicated a decline in sales volumes, decline in production, decline in capacity utilisation, decline in profits, decline in productivity, negative returns on investment, negative net cash flow, loss of market share and an increase in inventories.
The period of investigation for purposes of determining the dumping margin is from 1 July 2017 to 30 July 2018. material Injury is being assessed based on the period 1 July 2015 to 30 June 2018.

Interested parties have 30 days from the date of the initiation notice to provide responses

IF YOU WOULD LIKE TO RESPOND TO THIS APPLICATION, PLEASE CONTACT US ON INFO@XA.CO.ZA

 

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