Thu, May 03, 2018 - Page 12 News List

PET firms may face punitive taxes

By Kuo Chia-erh  /  Staff reporter

The US government might levy anti-dumping duties of up to 11.89 percent on polyethylene terephthalate (PET) resin imports from Taiwan, based on the US Department of Commerce’s preliminary findings, the Ministry of Economic Affairs said yesterday.

Far Eastern New Century Corp (遠東新世紀) and Worldwide Polychem (HK) Ltd (環世聚酯) might be subject to an anti-dumping duty of 11.89 percent, the ministry said in a statement.

Shinkong Synthetic Fibers Corp (新光合成纖維) might have to pay a 9.02 percent tax, while other Taiwanese PET resin makers are likely to face an anti-dumping duty of 10.99 percent, it said.

Taiwan was US’ second-largest PET resin importer last year, with sales of US$154.33 million, taking up a 14.62 percent market share, according to US customs data.

The department will instruct US Customs and Border Protection (CBP) to collect cash deposits from importers of PET resin from Taiwan and four other nations — Brazil, Indonesia, South Korea and Pakistan — based on these preliminary rates, it said in a statement on its Web site.

The department in September will announce the final determinations in these investigations to decide if it should issue anti-dumping orders, it added.

If it or the US International Trade Commission (ITC) “makes affirmative final determinations of dumping,” the department will issue anti-dumping orders, the statement said.

However, if the department or the ITC “makes negative final determinations of dumping ... the investigations will be terminated and no orders will be issued,” it said.

The proposed anti-dumping tax are not expected to have a significant impact on Far Eastern New Century’s business, as US clients contribute less than 10 percent to its overall PET revenue, a company official said by telephone.

Far Eastern New Century, the nation’s largest PET producer, has set up more offshore operations to diversify its markets.

The company in February announced that it would spend nearly NT$1 billion (US$34.6 million) to acquire a PET plant owned by M&G USA Corp in West Virginia to serve as its first production base in the US.

The facility, which is scheduled to start operations next quarter with an annual capacity of 360,000 tonnes, would mainly supply the US domestic market, the company said.

In related news, the ministry said that India has decided against levying anti-dumping duties on dioctyl phthalate (DOP) imports from Taiwan and South Korea, as those shipments have not caused substantial damage to India’s petrochemical industry.

India initiated the investigation on possible dumping of DOP in June last year, the ministry said.

Taiwan last year exported US$8.39 million worth of DOP products to India, accounting for 15.15 percent of the market, second to South Korea, which shipped US$43.51 million for a 78.62 percent market share, ministry data showed.

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