Pakistan’s National Tariff Commission (NTC) has imposed anti-dumping duties of up to 21% on polystyrene imports from China, drawing criticism from importers who claim the move contradicts the government’s stated intent to reduce duties, Business Recorder reported.
The duties were imposed following an anti-dumping investigation initiated on May 26, 2024, concerning the dumping of Polyester Filament Yarn (DTY) from China, which was found to cause material injury to Pakistan’s domestic industry. The investigation was triggered by applications from M/s Gatron Industries Limited and M/s Rupali Polyester Limited, both producers of DTY in Pakistan.
The NTC’s final determination on the case, which came after a four-month provisional duty, concluded that dumped imports from China were negatively impacting the local industry by undercutting prices and suppressing domestic production. The duties will be in place for five years, effective from November 15, 2024.
Importers have raised concerns about the timing and impact of these duties, noting that the government has been advocating for lower tariffs while the NTC’s actions are seen as counterproductive. In response, importers have approached the Ministry of Commerce and plan to challenge the decision in court.
The NTC’s decision follows an in-depth investigation and analysis of the dumping margins, injury to the domestic market, and various other factors, with the commission concluding that the imports from China were harming the local industry’s profitability and market share.
The NTC’s move is expected to generate Rs40 billion through anti-dumping duties over the next five years, adding another layer of regulatory complexity for importers who are already grappling with rising costs and economic challenges.
