DGTR recommends anti-dumping duty on plastic imports from China

India’s trade defence authority, the Directorate General of Trade Remedies (DGTR), has proposed anti-dumping duties of up to $707 per metric tonne on imports of Poly Vinyl Chloride (PVC) Resin Paste Resin from China and five other countries.

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India’s Directorate General of Trade Remedies (DGTR), the country’s trade defence arm, has recommended the imposition of anti-dumping duties ranging from $89 to $707 per metric tonne on the import of Poly Vinyl Chloride (PVC) Resin Paste Resin. The targeted imports originate from six countries—China, Korea, Malaysia, Taiwan, Thailand, and Norway—and the duties aim to counteract dumping practices that harm domestic industries.

The decision follows an extensive investigation triggered by a complaint from Indian manufacturer Chemplast Sanmar. The inquiry revealed that imports from these nations were being sold in the Indian market at “dumped prices”—rates lower than those charged in their respective home markets. This practice of dumping has adversely impacted Indian manufacturers of PVC Resin Paste, a versatile product with significant industrial applications.

PVC Resin Paste is primarily used for producing artificial leather, commonly used in the manufacturing of rexene and coated fabrics. Additional uses include tarpaulins, conveyor beltings, toys, automotive sealants, adhesives, and gloves. The broad applicability of this material underscores its importance to various industries, making its pricing critical to both manufacturers and end-users.

Despite the recommendation, the proposed duties have faced opposition from some user industries, including Micro, Small, and Medium Enterprises (MSMEs). These stakeholders argue that local production levels of PVC Resin Paste are insufficient to meet domestic demand, and the imposition of duties could escalate costs for downstream industries. For MSMEs, in particular, the cost sensitivity of raw materials can significantly impact their operations and competitiveness.

During the investigation stage, importers and exporters of PVC Resin Paste also expressed concerns about the potential consequences of the duties. However, the DGTR’s findings indicated that anti-dumping measures are necessary to provide a level playing field for domestic producers. Between April and October of the current fiscal year, imports of PVC Resin Paste amounted to $82.9 million, while the total for 2023-24 stood at $98.41 million, highlighting the growing reliance on imports.

The next step in this process involves notification by the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance, which will determine the final implementation of the duties.

The DGTR’s recommendation is part of a broader trend in India’s trade policy. In 2024 alone, the DGTR has initiated over 45 anti-dumping investigations, including review cases. Many of these inquiries target imports from China, reflecting the Indian government’s focus on curbing unfair trade practices and protecting domestic industries from external competition.

The imposition of anti-dumping duties on PVC Resin Paste highlights the ongoing balance between safeguarding local manufacturers and addressing the concerns of user industries. As India strengthens its trade defence mechanisms, stakeholders across the supply chain will need to navigate the evolving regulatory landscape to ensure sustainable growth.