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Chinese polystyrene: NTC imposes 21pc anti-dumping duties
ISLAMABAD: The National Tariff Commission (NTC) has imposed anti-dumping duties of up to 21% on imports of polystyrene from China, a move that has placed importers in a difficult position.
'On the one hand, the government claims it will gradually reduce duties, while on the other, the NTC is creating hurdles for importers and exporters. This contradictory approach risks pushing Pakistan's economy further into distress,' remarked one concerned importer.
Importers have approached to the Ministry of Commerce to immediately withdraw the NTC's notification, issued on June 18, 2025. They have also approached the NTC tribunal and plan to challenge the decision in court.
NTC generates Rs40 billion through anti-dumping duties in 25 years
According to a letter of NTC, it initiated an anti-dumping investigation on May 26, 2024, under Section 23 of the Anti-Dumping Duties Act, 2015 concerning dumping of Polyester Filament Yarn - Drawn Textured Yam ('DIY') from China into Pakistan and consequent material injury caused by such dumped imports to the domestic industry manufacturing DTY.
The application for this investigation was filed by M/s Gatron Industries Limited, Karachi and M/s Rupali Polyester Limited, Lahore. The Applicants are the producers of DTY in Pakistan. The Commission made a preliminary determination in this investigation in terms of Section 37 of the Act on November 15, 2024 and imposed provisional anti-dumping duties for a period of four months.
Subsequently, the Commission has made an affirmative final determination in this investigation in accordance with provisions of the Act and the Anti-Dumping Duties Rules, 2022 as follows: 'product under Investigation The product under investigation is Polyester Filament Yam- DTY imported from China, which is classified under Pakistan Customs Tariff ('PCT') Codes 5402.3300 and 5402.6200,'. The investigated product is generally used as an input for the manufacturing of textile fabrics, hosiery etc.
Period of Investigation (PoI) For determination of dumping and injury, the PoI is as follows: (i) for determination of dumping - from January 01, 2023, to December 31, 2023; and (ii) for determination of injury- from January 01, 2021, to December 31, 2023
On determination of dumping, NTC argued that Individual dumping margins are determined for sampled exporters/foreign producers of the investigated product from China in accordance with Parts III, IV and V of the Act. Normal value and export price of the investigated product for the sampled exporters/producers have been determined on the basis of the information provided by these exporters/producers in response to the Commission's questionnaires, after verification and analysis.
Injury to the domestic industry has been determined in accordance with Part VI of the Act. The Commission has established that the domestic industry has suffered material injury on account of volume of dumped imports, price undercutting, price suppression, production, sales, market share, productivity and wages, capacity utilization, profit and return on investment.
The Commission has also examined factors other than dumped imports under Section 18 of the Act, which could have, at the same time, caused injury to the domestic industry.
The Commission is satisfied that the investigated product has been imported into Pakistan at dumped prices from China, which is causing injury to the domestic industry.
The Commission in terms of Section 50 of the Act, has therefore, decided to impose the definitive anti-dumping duties on dumped imports of the investigated product classified under PCT Codes 5402.3300 and 5402.6200 for a period of five years effective from November 15, 2024.
According to NTC, the definitive anti-dumping duty rates are higher than the rate of provisional antidumping duty. However, the difference between provisional anti-dumping duty rates and definitive duty rates shall not be recovered as provided under section 55(2) of the Act.
The Commission further stated that definitive anti-dumping duties imposed on dumped imports of the investigated product would be in addition to other taxes and duties leviable on its imports under any other law, the definitive anti-dumping duties shall v of 1969) and be collected in the same manner as customs duty is collected under the Customs Act, 1969 shall be deposited in the National Tariff Commission's non-lapsable PLD Account.
Copyright Business Recorder, 2025
