ISLAMABAD: In a significant development aimed at protecting Pakistan’s Polyester Yarn Industry from dumped imports, the National Tariff Commission the National Tariff Commission (NTC) has imposed definitive anti-dumping duties on imports of Polyester Filament Yarn – Drawn Textured Yarn (DTY) originating from the People’s Republic of China. The decision, which comes into effect from November 15, 2024, follows a months-long investigation into allegations of dumping and will remain in force for a period of five years.
As per documents the investigation was initiated by the NTC on May 26, 2024, after receiving a formal application from Gatron Industries Limited, Karachi, and Rupali Polyester Limited, Lahore, two of the country’s primary producers of DTY. The applicants alleged that large volumes of Chinese-origin DTY were being imported into Pakistan at unfairly low prices, inflicting substantial damage on the local industry by undermining fair market competition.
Following a thorough inquiry, the Commission determined that dumping had indeed occurred. The investigation period for determining the extent of dumping spanned from January 1 to December 31, 2023, while the injury assessment covered a three-year timeframe from 2021 to 2023. The Commission found credible and verifiable evidence that imports of DTY from China were entering the Pakistani market at prices significantly below the normal value, resulting in material injury to domestic producers. This injury was evidenced by a decline in market share, persistent price undercutting and suppression, reduced profitability, and underutilisation of production capacity. Furthermore, the Commission noted negative effects on other key indicators such as productivity, wages, and return on investment, reinforcing the conclusion that the local industry had suffered serious damage due to dumped imports.
As a result, the NTC has announced the imposition of varying definitive anti-dumping duties on different Chinese exporters and manufacturers. Among the affected exporters, the XFM Group and its affiliates will face a duty of 5.35 percent, while Hengyi Group entities have been assigned a rate of 6.79 percent. Hangzhou Qingyun Holding Group Co. Ltd. is subject to a duty of 9.67 percent. The Tongkun Group will face a rate of 15.49 percent, and the Shenghong Group, including its various subsidiaries, will be subjected to a duty of 18.73 percent. The highest rate of 20.78 percent has been imposed on Jiaxing Longyin Textile Co., Ltd. and other non-cooperating or non-sampled exporters. All other exporters or foreign producers not explicitly named in the final determination will also be subject to the maximum rate of 20.78 percent.
It is important to note that these definitive anti-dumping duties will not apply to imports of the investigated product when used exclusively in goods destined for export or utilized in foreign grant-in-aid projects. Such exemptions are provided under Section 51(1)(ea) of the Anti-Dumping Duties Act, 2015, and are contingent upon the imported materials being covered under customs duty exemption schemes outlined in the Customs Act, 1969. Furthermore, although the final duty rates are higher than the provisional duties imposed earlier, the Commission has clarified that no retroactive recovery of the difference will be made, in line with Section 55(2) of the Act.
These duties will be collected in the same manner as customs duties under existing laws, with the revenue directed to the NTC’s non-lapsable PLD Account (No. 187) maintained at the Federal Treasury Office in Islamabad. The Commission has also issued a non-confidential version of the final determination report in accordance with Rule 16 of the Anti-Dumping Duties Rules, 2022, which is accessible through the Commission’s official website and its public file for stakeholder review.
