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PROVISIONAL DUTIES IMPOSED ON PET RESINS

DUMPING OF POLYETHYLENE TEREPHTHALATE RESIN 2 FROM CHINA AND PAKISTAN

On June 17, the Canada Border Services Agency (“CBSA”) issued its Notice of Preliminary Determination under subsection 38(1) of the Special Import Measures Act (“SIMA”), imposing provisional duties on polyethylene terephthalate (PET) resin originating in or exported from the Peoples’s Republic of China (“China”) and the Islamic Republic of Pakistan (“Pakistan”).  The investigation was prompted by a complaint filed by Compagnie Alpek Polyester Canada.

The Subject Goods

The goods under investigation are more specifically described as:

Polyethylene terephthalate (“PET”) resin having an intrinsic viscosity of at least 0.70 deciliters per gram but not more than 0.88 deciliters per gram, including PET resin that contains various additives introduced in the manufacturing process, as well as blends of virgin PET resin and recycled PET, originating in or exported from the People’s Republic of China and the Islamic Republic of Pakistan, and excluding 100% recycled PET resin (the “Subject Goods”).

Parallel CITT Investigation

On June 17, 2025, the CITT issued a notice initiating a final injury inquiry, which is a parallel process to determine if the alleged dumping has caused or is threatening injury to the Canadian industry.

Why Do I Care?

The CBSA has provided provisional duties payable for all Chinese exporters of PET resin in the amount of 128.8% of the export price, while provisional duties for all Pakistani exporters stand at 84.5%.  Notably, no exporters were given specific margins of dumping. 

If the CITT ultimately concludes the alleged dumping of the Subject Goods has caused injury or is threatening to cause injury to the Canadian industry, final Anti-Dumping and Countervailing Duties (“ADD/CVD”) will be imposed on imports of Subject Goods.

Anti-dumping investigations offer Canadian importers and foreign exporters and producers the opportunity to participate in the CITT injury inquiry and make representations to the CITT with respect to why the domestic industry is not being injured.

Should the CITT determine the evidence does not disclose a reasonable indication that the dumping and subsidizing of the subject goods have caused injury or retardation or are threatening to cause injury, pursuant to paragraph 35(1)(b) of SIMA that will lead to a termination of the CBSA’s investigation and the preliminary ADD/CVDs by operation of paragraph 35(2)(a) of SIMA.

What is the Timeline for Next Steps?

Under the Special Import Measures Act (“SIMA”), the parallel investigations of the CBSA and CITT will proceed as follows:

• The CITT requires any interested participants and their counsel to file Forms with the CITT by July 2.
• The CBSA’s final determination on the application of the AD/CVDs will be delivered September 15.
• The CITT will release its findings on October 15, with a statement of reasons to follow.

How Do I Get Involved?

Specialized legal advice is generally required. Given the strict timelines, and the late stage of the investigation, any parties potentially impacted should contact their lawyers immediately to discuss next steps!

For help with a Dumping Investigation, please click here.

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