Move To Scrap Dumping Duty On Pvc Resin To Hit Indian Majors

In a move that will hit major PVC resin manufacturers including Reliance Industries, DCM Shriram, Nocil, DCW and Finolex Pipes, among others the commerce ministry has recommended removal of the anti-dumping duty imposed on PVC resin.

The abolition of the duty has been recommended on the grounds that persistent dumping has not hurt the interests of Indian producers.

The duty had been levied on PVC resins imports from the US, Brazil, Mexico and Korea, for a period of five years in January 1994, following a complaint filed by the PVC Resin Manufacturers Association (PREMA).

The case was, however, re-opened for a suo motu review by the ministry along with another case bisphenol-A last October. In the case of bisphenol-A, the anti-dumping authority has recommended a slight increase in the anti-dumping duty since dumping has persisted and has hit domestic industry.

In the PVC resins case, it has been found that the landed price of imports is, in fact, significantly higher than the domestic sale price and, therefore, cannot be causing injury to domestic producers. Domestic producers, on their part, are free to raise domestic prices to match the landed imported price. However, sources explained that stiff competition among domestic producers is preventing them from raising prices.

On the issue of some domestic producers suffering losses, the ministrys contention is that the losses are not related to dumping of PVC resin. Domestic producers have been offering substantial trade discounts, primarily due to competition at home.

PREMA was, in contrast, lobbying for an increase in the anti dumping duty. While it was seeking doubling of the duty in the case of Mexico and Korea, it was pressing for the quadrupling of duty on imports from the US. In the case of imports from Brazil, the association had asked for the duty to remain the same.

The domestic industry, on its part, has held that an increase in dumping duty has been necessitated by the increase in dumping margins in the country.