In CBSA Investigation PETR 2017 IN, the CBSA concluded that polyethylene terephthalate resin imported from China, India, Oman and Pakistan was being dumped and duties were imposed. However, the CITT found no injury or threat of injury to the domestic industry, which should lead to a refund of provisional duties.
The goods that were the subject of the CBSA investigation are:
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, including PET resin that contains various additives introduced in the manufacturing process, and PET containing 50 percent or more virgin PET resin content by weight, originating in or exported from the People’s Republic of China, the Republic of India, the Sultanate of Oman and the Islamic Republic of Pakistan.
Prior to January 1, 2017, the subject has been classified as follows:
Since January 1, 2017, the subject goods are classified as follows:
The investigation began on August 18, 2017, after the CBSA received a written complaint from the Selenis Company of Montreal, Quebec. The petition of the Republic of China (China), the Republic of India (India), the Sultanate of Oman (Oman), the Islamic Republic of Pakistan (Pakistan) and the Republic of Turkey (Turkey) were dumped, and that certain PET resin from China, India, Oman and Pakistan are being subsidized.
On November 16, 2017, the CBSA made a preliminary determination of dumping and subsidizing. As a result, provisional duties were imposed.
On March 1, 2018, the CBSA made its final determination of dumping and subsidizing. During the period of investigation of dumping from April 1, 2016 to March 31, 2017, the CBSA concluded as follows:
|Country of Origin or Export||Margin of Dumping||Amount of Subsidy|
|All Exporters – China||30.6%||8.7%|
|Reliance Industries Limited||22.1%||4.0%|
|All Other Exporters – India||30.6%||35.2%|
|OCTAL SAOC FZC||7.2%||0.1%|
|All Other Exporters – Pakistan||28.0%||0.1%|
In tandem with the CBSA investigation, the CITT conducted its own investigation into whether the resin has caused injury to the domestic industry.
The subject goods are defined as:
A resin with an intrinsic viscosity of at least 0.70 deciliters per gram but not more than 0.88 deciliters per gram, including PET resin that contains various additives introduced in the manufacturing process, as well as blends of virgin. more virgin PET resin content by weight, originating in or exported from China, India, Oman and Pakistan.
In its decision dated April 3, 2018, the CITT concluded that the dumping and subsidizing of petroleum resin originating in China and India, and the dumping of PET resin originating in or exported from Oman and Pakistan, have not caused injury and are not threatening to cause injury to the domestic industry.
Accordingly, the provisional duties ought to be refunded.
John Reiterowski, DS Lawyers Canada, LLP
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