Anti-Dumping Duty on Chinese PET Resin Extended for Five Years: Detailed Analysis of Notification No. 12/2026-Customs (ADD)

The Central Government has formally prolonged the levy of anti-dumping duty on specific imports of Polyethylene Terephthalate (PET) resin originating in, or exported from, the People’s Republic of China. This continuation flows from the findings of a sunset review conducted by the designated authority under the framework of the Customs Tariff Act, 1975 and the related Anti-Dumping Rules.

This article explains the scope, legal basis, rate, and operational implications of Notification No. 12/2026-Customs (ADD) dated 19 June 2026, and what it means for importers, domestic manufacturers, and other stakeholders dealing in PET resin.

Statutory Authority

The anti-dumping duty has been imposed and continued under the following statutory provisions:

  • Section 9A of the Customs Tariff Act, 1975
  • Rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995

The latest action is also in the nature of a sunset review under sub-section (5) of section 9A, which enables the continuance of anti-dumping duty where cessation of duty is likely to lead to continuation or recurrence of dumping and injury.

Initiation of Sunset Review

The designated authority issued notification number 07/15/2025-DGTR dated 23rd September 2025, initiating the review concerning continuation of anti-dumping duty on:

“Polyethylene Terephthalate resin having an intrinsic viscosity of 0.72 decilitres per gram or higher”

These goods are classified under tariff items:

  • 3907 61 10
  • 3907 61 90
  • 3907 69 30
  • 3907 69 90

of the First Schedule to the Customs Tariff Act.

The review concerned imports originating in or exported from the People’s Republic of China, in respect of the anti-dumping duty that had earlier been imposed via Notification No. 18/2021-Customs (ADD) dated 27th March 2021.

Previous Anti-Dumping Duty Regime

The earlier levy under Notification No. 18/2021-Customs (ADD) was scheduled to expire after its prescribed period unless extended pursuant to a review. In light of the sunset review initiated by the designated authority, the Government has now replaced that notification with Notification No. 12/2026-Customs (ADD), thereby continuing and restructuring the duty for an additional five-year term.

Key Findings of the Designated Authority

In its final findings issued vide notification number 07/15/2025-DGTR dated 20th March 2026, the designated authority reached several crucial conclusions regarding the continued dumping of PET resin and its impact on the domestic industry.

1. Positive and Significant Dumping and Injury Margins

The authority determined that:

  • The dumping margin for all producers from the People’s Republic of China is positive and considerable.
  • The injury margin to the domestic industry is likewise positive and substantial.

This indicates that Chinese-origin PET resin continues to be exported to India at prices below their normal value, causing material injury to domestic producers.

2. Substantial Increase in Imports Despite Existing Duty

The review found that:

  • Imports from the subject country have risen at a significantly high rate, even though anti-dumping duty was already in force.
  • This trend demonstrates that the existing duties, while providing some level of protection, have not adequately curbed the inflow of dumped goods.

The authority observed that if the duty is removed:

  • Imports are likely to increase further, potentially worsening the injury being experienced by the domestic industry.

3. Price Undercutting and Potential Price Suppression/Depression

The authority concluded that:

  • Imported PET resin from China is undercutting the prices of the domestic industry.
  • In the absence of anti-dumping duty, such imports are likely to suppress or depress domestic prices, thereby undermining the viability and profitability of domestic producers.