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India imposes anti-dumping duty on Purified Terephthalic Acid

India has imposed anti-dumping duty on import of Purified Terephthalic Acid (PTA) from China, Iran, Taiwan, Indonesia and Malaysia for a period of five years. The imports of PTA will now attract an anti-dumping duty in the range of US$ 83.08 per tonne to UDS$ 168.76 per tonne.

PTA is a white free flowing crystalline powder that is the primary raw material for the manufacture of polyester chips. This in turn is used in a number of applications in textiles, packaging, furnishings, consumer goods, resins and coatings.

In December last year, the Revenue Department had imposed provisional anti-dumping duty on PTA imports after an investigation found that the chemical was being imported below its normal rate.

However, the PTA Users Association has demanded the Union government to withdraw its proposal for imposition of the duty on the import of PTA. The association says that the anti-dumping duty will have a negative impact on over 20,000 small and medium polyester fiber and polyester yarn manufactures in the country.

This will also further affect and might end the competition within the industry. Currently, the polyester fiber industry is working at just 60 to 70% capacity utilization because of tight supply of PTA and the imposition of anti-dumping duty will bring down capacity utilization further.

Anti dumping on PTA is not new. It is just that the old notification was valid till mid-June and the renewal got late.  Local producers have been charging 25 dollars per ton on international prices on account of anti dumping duty. They are not charging it against advance licence for yarn exports.

Till now there are three producers of PTA namely Reliance India Limited, Indian Oil Corporation Ltd. and Mitsubishi Chemical Corporation (MCC). JBF Industries is also in plans to start PTA production in the next few months.