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US to rethink on inclusion of Indian PET in GSP
28 May '16
5 min read
The petitioner also appeared at the USITC hearing and submitted that it is an ad hoc group of US PET resin producers that account for virtually all PET resin produced in the US, and seeks the removal of duty free treatment under the GSP programme for PET resin from India.
“The Commission should find a domestic PET resin industry that has been adversely affected, both financially and operationally, by the importation of significant volumes of low-priced, duty free PET resin from India. These imports, aided with GSP benefits, have contributed to import surges and price depressions that have injured domestic producers and contributed to the present injured condition of the U.S. PET resin industry. It should follow that imposition of the 6.5 per cent ad valorem tariff would significantly reduce import levels and have a positive impact on US producers,” the petitioner said.
It also argued that “the provision of duty free benefits under the GSP program has enabled imports from India to increase from 2012-2014. For example, imports from India rose from 54.8 million pounds in 2012 to 102.4 million pounds in 2014, or a surge of 86.9 per cent. The increase in imports from India has been particularly significant from 2012-2013, with even further growth in 2014. In one year alone, imports from India grew by 73 per cent from 2012-2013.
“Notably, PET resin imports from India maintained high volumes in the U.S. market for full year 2015 even with an antidumping and countervailing duty case filing on March 10, 2015. Imports from India were on track in 2015 to exceed import levels in 2014, if it were not for the filing of the trade case,” the petitioner said.
PET resin is primarily sold in bulk form as chips or pellets to downstream end users/converters. Converters primarily use bottle-grade PET resin to manufacture bottles and other sterile containers that house liquid and solid products for human consumption or contact. Major end-use applications for bottle-grade PET resin include carbonated soft-drink bottles, water bottles, and other containers such as those for juices, peanut butter, jams and jellies, salad dressings, cooking oils, household cleaners, and cosmetics.
There are approximately 12 export-oriented PET resin producers in India. (SH)
“The Commission should find a domestic PET resin industry that has been adversely affected, both financially and operationally, by the importation of significant volumes of low-priced, duty free PET resin from India. These imports, aided with GSP benefits, have contributed to import surges and price depressions that have injured domestic producers and contributed to the present injured condition of the U.S. PET resin industry. It should follow that imposition of the 6.5 per cent ad valorem tariff would significantly reduce import levels and have a positive impact on US producers,” the petitioner said.
It also argued that “the provision of duty free benefits under the GSP program has enabled imports from India to increase from 2012-2014. For example, imports from India rose from 54.8 million pounds in 2012 to 102.4 million pounds in 2014, or a surge of 86.9 per cent. The increase in imports from India has been particularly significant from 2012-2013, with even further growth in 2014. In one year alone, imports from India grew by 73 per cent from 2012-2013.
“Notably, PET resin imports from India maintained high volumes in the U.S. market for full year 2015 even with an antidumping and countervailing duty case filing on March 10, 2015. Imports from India were on track in 2015 to exceed import levels in 2014, if it were not for the filing of the trade case,” the petitioner said.
PET resin is primarily sold in bulk form as chips or pellets to downstream end users/converters. Converters primarily use bottle-grade PET resin to manufacture bottles and other sterile containers that house liquid and solid products for human consumption or contact. Major end-use applications for bottle-grade PET resin include carbonated soft-drink bottles, water bottles, and other containers such as those for juices, peanut butter, jams and jellies, salad dressings, cooking oils, household cleaners, and cosmetics.
There are approximately 12 export-oriented PET resin producers in India. (SH)
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