In a major blow to the Indian plastics machinery manufacturers, the government of India has rejected industry’s proposal and recommendations from the Directorate General of Trade Remedies (DGTR) to levy an anti-dumping duty (ADD) on the import of plastics processing machinery from China.

Earlier on February 16 this year, the DGTR under the Union Ministry of Commerce and Industry had recommended a levy of 43.59 percent ADD on plastics processing and injection moulding machines imported from China directly or indirectly. This notification was welcomed by the Indian plastics processing machinery manufacturers.

Normally, the DGTR recommends based on its own findings of an investigation and complaints raised by the aggrieved Indian companies with the injury caused by cheap import. Once the Ministry of Finance accepts the DGTR recommendations, the Ministry issues a final notification for the actual imposition of the ADD on a product/country or a group of products/countries.

In this case, however, a notification issued by the Union Ministry of Finance, reads, “After considering the aforesaid final findings of the designated authority, it has been decided not to accept the DGTR recommendations.” The notification, however, did not cite further explanation on the reasons for the rejection.

The issue emerged after the representative body of Indian plastics machinery manufacturers i.e. Plastics Machinery Manufacturers Association of India (PMMAI), on behalf of the domestic producers namely Shibaura Machine India Pvt Ltd (formerly known as Toshiba Machine (Chennai) Pvt Ltd) and Milacron India Pvt Ltd, registered a complaint with the designated authority, the DGTR in this case under the Ministry of Commerce and Industry. The complaint mentions that Plastics Processing Machines or Injection Moulding Machines are being imported from China at lower than the current prevailing market rates in India which causes injury to the domestic producers.

Based on the duty substantiated application with prima facie evidence of dumping and injury filed by the applicant association, the Authority initiated the anti-dumping investigation with an objective to recommend to the Union Finance Ministry with an ADD equivalent to the injury caused by such import or otherwise, reject the claim as made by the Indian association.

“The government authorities have already ascertained the injury caused by cheap plastic processing machinery imports from China. We are currently studying the notification and will take our next course of action shortly,” said Anu Chaudhary, Secretary General, Plastics Machinery Manufacturers Association of India.

In fact, a thorough investigation was conducted in consultation with importers, traders, distributors and other participants in the value chain. Chinese exporters were approached in consultation with the Indian Embassy in China. But, Chinese exporters chose not to respond to the questionnaire from the Indian authorities. On their behalf, however, submissions were made by the China Plastics Machinery Industry Association (CPMAI) and the same were considered while assessing the overall issue.

According to the PMMAI complaint, the period of investigation was fixed for 18 months between April 2, 2019 and September 30, 2020. The reason for adopting the period of investigation with a longer duration than the standard 12 months is that the date furnished by the domestic industry in their application was up to June only, which was not recent enough and was more than six months old at the time of initiation of the investigation. The DGTR considered the injury period for four-and-a-half years i.e. from April 1, 2016 to September 30, 2020.

Source: Polymerupdate