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Demand for anti-dumping duty on polyester imports from China
Jan '09
Since anti-dumping duties had been levied on imports of polyester from countries other than China, the local manufacturers are hopeful of having the same implemented against the Chinese exporters.

The polyester producers have petitioned to the concerned government department, mandating the creation of a tariff barrier for polyester imports from China. The Polyester Staple Fibre Manufacturers Group (PSFM) has taken the lead in lobbying for the anti-dumping duty.

In the past, China was a big importer of polyester from other Asian countries. But now over a period of time it has built vast polyester capacities, leading to negligible imports of the raw material. This has led to these manufacturers seeking new markets and also selling at low rates, to the detriment of the local polyester producers, which led to an levy being applied to imports from these countries.

China has added vast polyester capacities in the last few years and since the unfolding of the economic crisis, is looking for new markets due to the slowdown in its domestic markets. Chinese manufacturers are dumping polyester in Pakistan and other markets at prices lower than those at which they sell in the domestic markets.

This has rung alarm bells among the polyester manufactures in Pakistan, who are struggling to keep themselves afloat. Most of the polyester units are operating below capacity since the last few months and the Chinese polyester dumped at low prices is creating havoc amongst the polyester manufacturers.

fibre2fashion.com spoke to Mr Shahid Amin, Secretary General, Polyester Staple Fibre Manufacturers Group (PSFM) to get a better understanding of the situation. He said, “Yes, PSFM has petitioned to the National Tariff Commission of Pakistan to impose anti-dumping duty on Chinese PSF exporters as they are dumping PSF in Pakistan and we have supplied substantial evidences to this effect.”

According to him, the import duty on Polyester Staple Fibre was 7.5%. In the budget for the year 2008~2009 it was reduced to 4.5%. The government in the past, with the purpose to protect its domestic industry had levied a 15 percent duty on imports of polyester. But on expiry of the period in June last year, had reduced the duty substantially.

Fibre2fashion News Desk - India

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