Product description – The product under consideration is Polyethylene Terephthalate Film or Biaxially Oriented Polyethylene Terephthalate Film or PET Film of 8-100 microns, excluding PET Films used in solar panels and Thermal Lamination Films.

HS Codes – 3920 6210, 3920 6220, 3920 6290, 3920 6919 and 3921 9094

Uses – PET Films are majorly used as packaging material in fast moving consumer goods. It is also used for industrial applications as electrical insulation, electrical material packaging, magnetic tapes, for printing, in labels, posters, as adhesive tapes and silicon films.

Countries involved – Bangladesh, China PR and Thailand.

Applicants – Chiripal Poly Films Limited, Ester Industries Limited, Uflex Limited, Sparsh Industries Private Limited and Vacmet India Limited.

Period of investigation – 1^st April 2024 to 31^st March 2025.

Injury period – 2021-2022, 2022-23, 2023-24 and the period of investigation.

Margins and recommended duties –

Key findings –

1. The Authority confirmed the scope of product under consideration and the PCN Methodology as adopted in the preliminary findings.
2. It was confirmed that the applicants jointly and along with supporters accounted for a major proportion of the total eligible domestic production and constituted domestic industry as defined under Rule 2(b).
3. The Authority confirmed that the exporters from the subject countries were dumping the subject goods in India and causing material injury to the domestic industry.
4. Volume of subject imports increased significantly over the injury period except in 2023-24 as compared to the previous year, on account of increased production and supply by the domestic industry.
5. Nevertheless, the volume of imports was still higher in 2023-24 as compared to the base year and was highest in the period of investigation.
6. Subject imports increased at a higher rate than the increase in Indian demand.
7. Subject imports undercut the prices of the domestic industry and exerted significant pressure on its prices, forcing it to reduce at a higher rate than decline in its costs. The subject imports depressed and suppressed the prices of the domestic industry.
8. Landed price declined significantly over the injury period, which was not in line with the global prices of major inputs, PTA and MEG.
9. Volume of production and sales of the domestic industry increased till 2023-24 and declined thereafter, even though its installed capacities continued to increase over the injury period.
10. Market share of the domestic industry declined, whereas that of subject imports increased despite no demand-supply gap in the country.
11. The domestic industry was unable to efficiently utilize its capacities and dispose of its inventories, resulting in accumulation of inventories.
12. The domestic industry incurred financial losses and recorded negative returns on capital employed. Its cash profits declined significantly since 2022-23.
13. The subject imports adversely impacted the ability of the domestic industry to raise further capital.
14. No other factor, including imports from other countries and disruptions caused by U.S. – Iran conflict has caused injury to the domestic industry.
15. It was confirmed that the subject imports are threatening to cause further injury to the domestic industry, considering a) significant rate of increase in imports, b) significant idle capacities available with foreign producers, c) high export orientation of foreign producers, c) global oversupply situation, d) planned capacity expansions, e) imposition of trade remedial measures and other tariff measures by third countries.
16. PET Film is majorly used in manufacturing flexible packaging along with other packaging materials and does not constitute a major cost in the end-product. Thus, any increase in costs due to imposition of duties will have a negligible impact on downstream users.
17. The Authority noted that imposition of duties will be in the interest of the public at large.
18. Imposition of duties will not lead to monopoly of the domestic industry considering users have sufficient sources to procure subject goods.