Product Description: The product under consideration is virgin polyethene terephthalate (PET) resin having an intrinsic viscosity of 0.72 decilitres per gram or higher excluding recycled PET Resin.

HS Codes: 3907 6110, 3907 6190, 3907 6930 and 3907 6990.

Country Involved: China

Exporter Involved: Wankai New Materials Co., Ltd. / Zhejiang Wankai New Materials Co., Ltd. (“Wankai”)

Applicant(s) –

1. IVL Dhunseri Petrochem Industries Private Limited
2. Reliance Industries Limited

Date of Initiation: 4^th March 2024

Period of Investigation: 1^st January 2023 – 30^th September 2023

Past Investigations involving the product: Anti-dumping duty on imports of Polyethylene Terephthalate Resin from China were recommended vide Notification No. 6/24/2019-DGTR dated 28^th December 2020. These were levied by the Ministry of Finance vide Customs Notification No. 18/2021-Customs (ADD), dated 27^th March, 2021.

Margins and recommended duties:

Country	Producer	Dumping margin	Injury margin	Duty ($/MT)
China	Wankai New Materials Co. Limited	10-20%	0-10%	40.41

Key Findings:

1. The scope of the product under consideration is virgin polyethene terephthalate (PET) resin. The scope does not include recycled PET resin. The said scope is the same as that in the original investigation.
2. The present review was initiated based on evidence of absorption of duties imposed on imports from Wankai New Materials Co., Ltd. or Zhejiang Wankai New Materials Co., Ltd. (“Wankai”) from China.
3. Anti-absorption investigation can be initiated against imports from an individual exporter as absorption is a producer specific behaviour,  Since different duties are imposed on different exporters, there is high likelihood that the absorption of duties is different for each exporter.
4. Interpretation of the Anti-dumping Rules that an anti-absorption investigation can be initiated only against a subject country shall render the the provision regarding filing of application by exporters as ineffective since the same would lead to initiation of investigation against them.
5. There are special circumstances justifying filing of the application for anti-absorption investigation after the expiry of 2 years of imposition of original duty as imports from Wankai increased significantly post expansion of capacities.
6. Increase in capacity of a related party implies an increase in cumulative capacity of the subject producer/exporter.
7. Wankai’s related party has failed to file a response in the present review and is subject to residual duties, as applicable.
8. The decline in the price of imports from Wankai is higher than the decline in the cost of production considering the change in price of raw materials PTA and MEG, hence, the producer has absorbed the anti-dumping duty in force.
9. The absorption of duty has been quantified in USD as the exports were made in USD, price was negotiated in USD and the payments were realised by Wankai in USD.
10. The change of product mix has not been considered for determination of absorption of duty as there was no PCN in the original investigation wherein the dumping margin and injury margin for Wankai was determined without considering the product mix.
11. The constructed normal value and the non-injurious price have been determined based on previously determined normal value and non-injurious price, respectively, duly adjusted for appropriate changes, in accordance with Rule 29(2).
12. The Authority has recommended enhancement of anti-dumping duty on imports of Wankai. For other exporters, the anti-dumping duty imposed earlier would continue as it is.