The Directorate General of Trade Remedies (DGTR), operating under the Ministry of Commerce and Industry, has concluded its anti-dumping probe into the importation of mono ethylene glycol (MEG) from Kuwait, Saudi Arabia, and the United States without imposing any measures.
As a crucial component for producing polyethylene terephthalate (PET) resins, MEG plays a vital role in manufacturing plastic bottles used for pharmaceutical packaging. PET, known for being a robust, transparent, and lightweight polyester plastic, is critically important in ensuring quality standards within the pharma sector.
The scrutiny, launched on June 28, 2021, stemmed from appeals made by India Glycols Limited (IGL) and Reliance Industries Limited (RIL). They contended that exporters from these regions were delivering MEG at undervalued prices, damaging the Indian market.
Rooted in the Customs Tariff Act, 1975, and its related Anti-Dumping Rules, 1995, the claim prompted an initial assessment including a hearing held on December 9, 2021, for stakeholders to voice their inputs.
With findings by October 27, 2022, DGTR determined no significant detriment occurred to the local industry, negating the need for anti-dumping tariffs.
An ensuing appeal by RIL led the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) to order DGTR to revisit the matter in October 2023.
On September 25, 2024, RIL withdrew its involvement, attributing the decision to the investigation’s outdated data that no longer mirrored current market conditions. Conforming with Rule 14(a) of the Anti-Dumping Rules, this prompted DGTR to cease the inquiry.
The formal closure notice from DGTR cited the decision was “based on a domestic industry request and under the purview of Rule 14(a) of the Rules, ending the investigation which started on June 28, 2021.”
This step concludes the investigation into MEG imports from the identified countries, effectively terminating any further proceedings.