NTC Slaps Anti-dumping Duty on BOPP Film

The National Tariff Commission (NTC) of Pakistan has imposed provisional anti-dumping duty on import of Biaxially Oriented Poly Propylene (BOPP) film, ranging between 22.92 to 62.70 percent from China, United Arab Emirates (UAE), Oman and Saudi Arabia.

Sources told Business Recorder here on August 26 that the provisional anti-dumping duty would be applicable from August 14, 2012 to December 13, 2012. The NTC in terms of Part II and Part XI of the Anti Dumping Duties Ordinance 2000 has imposed provisional anti-dumping duty on imports of BOPP film classified under Pakistan Customs Tariff (PCT) Headings. 3920.2010 and 3920.2030 at different rates. The anti-dumping duty would be 29.70 percent on the import of BOPP film from UAE (exporter name Taghleef) and anti-dumping duty would be 57.09 percent on the import of BOPP film (all other exporters). The anti-dumping duty would be 22.92 percent on the import of BOPP film from Oman (exporter name Taghleef) and anti-dumping duty would be 22.92 percent on the import of BOPP Film (all other exporters). The anti-dumping duty would be 22.92 percent on the import of BOPP Film from Oman (exporter name Taghleef) and anti-dumping duty would be 22.92 percent on the import of BOPP Film (all other exporters). The anti-dumping duty would be 62.70 percent on the import of BOPP Film from China (all exporters). The anti-dumping duty would be 26.91 percent on the import of BOPP Film from Saudi Arabia.

According to the sources, these provisional anti dumping duty is levied for a period of four months with effect from August 14, 2012 to December 13, 2012. The Federal Board of Revenue (FBR) will collect the provisional antidumping duty as per given rates on the import of the BOPP Films at the import stage. The sub-section (1)(c) of section 51 of the Ordinance requires that the antidumping duties imposed shall be collected in the same manner as customs duty is being collected under Customs Act, 1969 (Act IV of 1969). The duties so collected shall be deposited under the head-Civil Deposits for further deposit in National Tariff Commission’s Non-lapsable PLD Account No.187 established with Federal Treasury Office, Islamabad.

Provisional anti-dumping duty levied would be in addition to other anti-dumping duty imposed earlier and taxes and duties levied under any other law, sources added.

Details of the issue revealed that the NTC has also issued notice of the preliminary determination and levy of provisional anti-dumping duty on the import of Biaxially Oriented Poly Propylene Film into Pakistan originating in and or exported from China, Oman, Saudi Arabia and UAE.

NTC had received an anti-dumping application under Section 20 of the Anti-Dumping Duties Ordinance, 2000 (the "Ordinance") on April 12, 2010 from Tri-Pack Films Limited, Karachi (the "Applicant"), a domestic producer of Biaxially Oriented Poly Propylene Film ("BOPP Film"); alleging dumping of BOPP Film into Pakistan originating in and/or exported from China, Oman, Saudi Arabia and UAE ("Exporting Countries"). Investigated product is used for large number of end-use applications. Sources said that the decision of the Commission dated September 27, 2010 to initiate investigation in this case was challenged in the Islamabad High Court through Writ Petition No. 2098 of July 2011 and the proceedings were stayed by IHC. In a decision dated March 10, 2012, the Islamabad High Court ordered the Commission to proceed afresh on the complaint pending before the Commission. Therefore, in pursuance of the Islamabad High Court Order, the Commission reinitiated investigation against alleged dumping of BOPP Film into Pakistan originating in and/or exported from the Exporting Countries on April 23, 2012 after fulfilling the requirements of Section 23 of the Ordinance.

The Applicant identified 23 exporters/foreign producers involved in alleged dumping of BOPP Film from the Exporting Countries and provided complete addresses of 19 exporters/foreign producers.
In response to the questionnaire, one exporter/foreign producer from Oman, Taghleef SAOG, and one exporter/foreign producer from UAE, Taghleef LLC, responded to the Commission. Taghleef SAOG and Taghleef LLC furnished necessary information for the purposes of this investigation.

Sources said that Biaxially Oriented Poly Propylene Film, originating in and/or exported from the Exporting Countries is the product under investigation ("investigated product"). It is classified under Pakistan Customs Tariff ("PCT") Nos. 3920.2010 and 3920.2030.

The normal value and export price of the investigated product for the exporters/foreign producers who cooperated and furnished necessary information have been determined in accordance with Sections 5, 6 and 10 (1) of the Ordinance, respectively on the basis of the information provided by these exporters/foreign producers in response to the Commission’s questionnaire. Dumping margins for all other exporters from the Exporting Countries, who did not cooperate, is determined on the basis of best information available in terms of Section 32 of the Ordinance.

Sources said that the dumping margins have been calculated in accordance with Section 12(1) of the Ordinance by comparing the weighted average normal value at ex-factory level with the weighted average export price at ex-factory level. The provisional dumping margins expressed as percentage of weighted average adjusted export price at ex-factory level has been work out.

Sources said that the injury to the domestic industry has been determined in accordance with Part VI of the Ordinance. The Commission has on preliminary basis established that the domestic industry suffered material injury on account of Increase in volume of dumped imports, price undercutting, price depression, decline in market share, decline in domestic sales, decline in profit, negative effect on productivity, negative effect on salaries & wages, negative effect on return on investment, and negative effect on growth.

In order to prevent material injury during the course of this investigation, the Commission, pursuant to the powers conferred upon it under Section 43 of the Ordinance, has decided to impose provisional anti-dumping duties on imports of the investigated product, originating in and/or exported from the Exporting Countries for a period of four months effective from August 14, 2012.

The provisional antidumping duties shall take the form of security by way of cash deposit in Commission’s Non-lapsable PLO Account No. 187 with Federal Treasury Office Islamabad. Provisional antidumping duties would be collected in the same manner as customs duty under the Customs Act, 1969 (IV of 1969). The release of the investigated product for free circulation in Pakistan shall be subject to imposition of such antidumping duties.

Any party registered as an interested party in this case may, if it so wishes, request a hearing in accordance with Rule 14 of the Rules within 30 days of the publication of this notice by contacting National Tariff Commission.

In terms of Section 39 of the Ordinance, the Commission is required to make final determination within 180 days of publication of notice of Preliminary Determination. However, the Commission has planned to finalize this investigation within four months of the publication of this notice of Preliminary Determination, sources added.