In a move to safeguard Pakistan's Polyester Yarn Industry from dumped imports, the National Tariff Commission (NTC) has implemented definitive anti-dumping duties on imports of Polyester Filament Yarn – Drawn Textured Yarn (DTY) originating from China. The decision, effective from November 15, 2024, follows an investigation initiated by Gatron Industries Limited and Rupali Polyester Limited, two major DTY producers in Pakistan.

The NTC launched the investigation on May 26, 2024, based on a formal complaint from the local producers. They alleged that Chinese DTY imports were entering the Pakistani market at unfairly low prices, causing significant harm to the domestic industry by distorting competition.

After a comprehensive inquiry, the Commission confirmed the occurrence of dumping. The investigation period spanned from January 1 to December 31, 2023, while the injury assessment covered the years 2021 to 2023. The NTC found substantial evidence that Chinese DTY imports were being sold in Pakistan well below their normal value, resulting in harm to local producers through decreased market share, price suppression, reduced profitability, and underutilization of production capacity.

Consequently, the NTC has imposed definitive anti-dumping duties on various Chinese exporters and manufacturers. Entities like XFM Group, Hengyi Group, Hangzhou Qingyun Holding Group Co. Ltd., Tongkun Group, Shenghong Group, and Jiaxing Longyin Textile Co., Ltd. will face duties ranging from 5.35% to 20.78%. Other non-cooperating or non-sampled exporters will also be subject to the maximum rate of 20.78%.

It is worth noting that these duties will not apply to the investigated product when used exclusively for export or in foreign grant-in-aid projects. These exemptions are outlined in the Anti-Dumping Duties Act, 2015, and the Customs Act, 1969. Additionally, while the final duty rates are higher than the provisional duties, no retroactive recovery of the difference will be enforced.

The collected duties will be managed like customs duties, with the revenue directed to the NTC's non-lapsable PLD Account (No. 187) at the Federal Treasury Office in Islamabad. The Commission has also released a non-confidential version of the final determination report for public review through its official website and public file.