National Tariff Commission extends anti-dumping duties on hydrogen peroxide imports for five more years

The National Tariff Commission has decided to extend anti-dumping duties on imports of hydrogen peroxide from seven countries for another five years, effective from September 2, 2025, Business Recorder reported. 

The duties will continue at the existing ad valorem rates on imports originating from Belgium, China, Indonesia, Korea, Chinese Taipei, Thailand and Turkey.

The decision was taken following a sunset review conducted under the Anti-Dumping Duties Act and relevant rules, with the review report issued in accordance with Section 39(5) of the Act, Rule 43(2) of the Rules and Article 12.2 of the WTO Anti-Dumping Agreement.

According to the Commission, continuation of anti-dumping duties has supported growth in the domestic hydrogen peroxide industry through expansion in production capacity and new investments.

The Commission noted that Sitara Peroxide Limited temporarily suspended operations in mid-2023 for balancing, modernisation and replacement activities, while Engro Polymers and Chemicals Limited recently established a new hydrogen peroxide manufacturing facility.

The Commission stated that these developments reflected improved financial strength and investment capacity within the local industry.

However, it warned that removing the duties would likely result in a surge in dumped imports that could adversely affect domestic manufacturers.

According to the findings, withdrawal of duties could lead to price undercutting, price depression and price suppression, negatively impacting sales, production, market share and profitability.

The Commission said expiry of the duties could also result in lower production, reduced capacity utilisation, declining market share and adverse effects on profits, inventories, return on investment, employment, cash flows and productivity.

The sunset review was initiated after an application filed by the domestic industry within the timeframe prescribed under Sections 24 and 58 of the Anti-Dumping Duties Act.

Under the law, anti-dumping duties cannot lapse if their removal is likely to lead to continuation or recurrence of dumping and injury to the domestic industry.

Based on its findings, the Commission concluded that ending the duties would likely result in renewed dumping and injury, leading to the decision to extend the measures for another five years.