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Do not impose duty on PTA imports: PHD Chamber to govt
Feb '14
PHD Chamber of Commerce and Industry has suggested the Indian Government not to impose anti-dumping duty on imports of Purified Terephthalic Acid (PTA) into India in view of its demand supply mismatch, which according to latest estimates stands at 4,096,952 MT against 3,420,000 MT, according to a PHD Chamber press release.
India presently imports PTA from China, the EU, Korea and Thailand, which helps the domestic industry in small- and medium-sized category to tide over its shortage and enables them to manufacture polyester staple fibre, polyester filament yarn, polyester film and other value added products.
In a representation sent out to the Government by the Executive Director of the Chamber Saurabh Sanyal, it has been highlighted that the domestic producers of PTA are acting in an unreasonable manner to put additional burden on the user industry with the sole objective of earning super normal profits on the product, seeking to impose anti-dumping measures on it at the cost of small- and medium-sized enterprises which is not fair.
Mr. Sanyal explained that the PTA is one of the major raw materials for production of polyester chips, which in turn is used to produce polyester filament yarn, polyester staple fibre and polyester film.  To produce 1 kg of polyester staple fibre 0.92 kg of PTA is required and to produce 1 kg of polyester chips 0.8583 kg of PTA is required.
The representation of the PHD Chamber also points out that polyester filament yarn, polyester staple fibre and synthetic textiles form core of the exports from India.  Further, Indian polyester staple fibre is already facing anti-subsidy investigation in European Union vide initiation notice (2013/C372/12) dated December 19, 2013.  Egypt has initiated anti dumping investigations vide notice no. (9) published in their official Gazette no.292 supplementary (A) on December 24, 2013.
The imports of PTA did not cause any injury as claimed by some of the players who want anti-dumping measures on PTA imports.  Even the leading company such as Indian Oil Corporation does not seek anti-dumping duty on PTA imports.
“The Chamber is of the view that in view of substantial demand supply mismatch of PTA, any anti-dumping measure on it would prove injurious to domestic industry and thus, the idea to impose trade barriers on PTA imports should not be entertained by the Government,” the release said.

Fibre2fashion News Desk - India

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