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Petition Filed for New AD/CV Duties on PET Resin From Canada, China, India and Oman

A group of U.S. manufacturers filed a petition on March 10 with the Commerce Department and International Trade Commission requesting new antidumping duties on polyethylene terephthalate (PET) resin from Canada (A-122-855), China (A-570-024), India (A-533-861) and Oman (A-523-810), as well as countervailing duties on the same product from China (C-570-025), India (C-533-862) and Oman (C-523-811). DAK Americas, M&G Chemicals, and Nan Ya Plastics say underpriced imports of PET resin from the four countries have led to "anemic" capacity utilization by U.S. manufacturers, and have had a "negative effect on domestic industry employment."

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PET resin is usually sold in bulk as chips or pellets to downstream end users or converters, who use the resin to make plastic beverage bottles, food containers, and packaging for household chemicals, automatic and pharmaceutical products. According to the petition, domestic industry asked for AD/CV duties on PET resin from India, Indonesia, Thailand and Taiwan in 2004, but the investigations resulted in no duties being imposed.

Proposed Scope

The petition proposes the following scope for the investigations:

"The merchandise covered by this investigation is polyethylene terephthalate ('PET') resin having an intrinsic viscosity of at least 0.70 deciliters per gram but not more than 0.88 deciliters per gram ('certain PET resin'). Certain PET resin is typically used in the production of plastic beverage bottles, in packaging for food and manufactured products, in containers for household and automotive products, and in industrial strapping. The scope includes PET resin that contains various additives introduced in the manufacturing process, as well as blends of virgin PET resin and recycled PET.

"The merchandise subject to this investigation is properly classified under subheading 3907.60.00.30 of the Harmonized Tariff Schedule of the United States ('HTSUS'). Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive."

Commerce Accepting Comments on Petition Support

The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations on PET resin from Canada, China, India and Oman. Comments are due by March 30.

Email ITTNews@warren-news.com for a copy of the petition.