- Subject imports rise 186% during investigation period
- China accounts for 63% of subject imports
The Directorate General of Trade Remedies (DGTR) has recommended definitive anti-dumping duties on imports of polyethylene terephthalate (PET) film originating in or exported from Bangladesh, China and Thailand, after finding that dumped imports caused material injury to the Indian domestic industry. The recommendation follows an investigation covering April 2024-March 2025 and proposes fixed duties ranging from $54-366/MT depending on the country and producer category.
Import pressure increases
Subject-country PET film imports increased to 41,719 tonnes (t) during the period of investigation (POI), from 14,607 t in 2021-22. This represents an increase of 186%, compared with a 41% rise in Indian demand over the same period. Subject countries accounted for around 52% of India’s total PET film imports during the POI.
China PR was the largest source among the subject countries at 26,086 t, followed by Thailand at 12,870 t and Bangladesh at 2,763 t during the POI.
DGTR finds material injury
DGTR concluded that subject imports increased significantly and exerted price pressure on the domestic industry. The Authority found deterioration in capacity utilisation, market share, inventories and financial performance, while the domestic industry continued to incur losses and negative returns.
It also concluded that other factors examined during the investigation did not explain the injury and confirmed a causal link between dumped imports and material injury.
The Authority also retained its finding of a threat of further injury, citing available idle and export-oriented capacities in the subject countries, planned capacity additions, global oversupply and trade-remedy measures in other markets.
Duty structure varies by producer
DGTR has recommended a fixed anti-dumping duty in US dollars per tonne under the lesser-duty principle, with the applicable amount limited to the lower of the dumping margin and injury margin. The proposed duty may remain in force for five years from the date of notification by the Central Government, subject to the applicable rules.
The recommended duty is not yet a customs levy. DGTR has made the recommendation through its final findings; the duty would take effect from the date of the Central Government’s notification.
Impact on Indian PET film market
If notified, the duty structure is likely to alter the landed economics of PET film imports from the three subject countries, with the impact varying significantly by producer. The highest proposed rate of $366/MT applies to other Thai producers, while the lowest producer-specific rate is $54/MT for a specified Chinese producer category.
For domestic PET film producers, the measure could reduce the price pressure identified by DGTR and improve the competitive position of domestic material against subject-country imports. For importers and downstream users, the effect would depend on the applicable exporter-specific duty and the extent to which suppliers adjust export prices.
DGTR also examined downstream and consumer interests. It noted that PET film represents only a small component of the cost of packaged products and estimated that the illustrative impact of the highest recommended duty on a packet of chips would be around 5 paise, or 0.2%. The Authority concluded that the recommended measure would not create a supply restriction or monopoly.
Outlook
The immediate market impact will depend on the Central Government’s decision on the recommendation and the subsequent implementation of the duty. If notified, differences in producer-specific rates could encourage Indian buyers to reassess sourcing between subject-country suppliers and alternative origins, while the relatively high residual rates could put greater pressure on non-cooperating exporters.
The investigation also highlights the structural risk from rising overseas capacity and global PET film oversupply, which DGTR identified as factors supporting its threat-of-injury determination.
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