ISLAMABAD, June 24: The National Tariff Commission will initiate an anti-dumping investigation against exporters/producers of PVC resin (suspension grade) from South Korea and Iran, according to a decision announced here on Thursday.

Fifth such case taken up by the NTC since promulgation of the Anti-dumping Duties Ordinance 2000, the investigation has been launched on a complaint filed by Engro Asahi Polymer and Chemicals Ltd, Karachi, on behalf of the domestic industry.

PVC resin, NTC Chairman Dr Faizullah Khilji told Dawn, had a wide range of applications and, particularly, a main raw material used in the manufacturing of PVC pipes. Besides PVC pipes, it is used in the production of shoes, artificial leather, film, insulation cables, ducts, doors, window profiles, plastic chairs and tables.

The decision follows allegation by the complainant firm that PVC resin, classified under Pakistan Customs Tariff Heading No 3904.1000, was being exported to Pakistan at dumping prices by LG International Incorporation, Seoul, and Iran Petrochemical Commercial Company (IPCC), Teheran, causing serious injury to the domestic industry.

As required under relevant anti-dumping rules, the commission has asked the interested parties to apply for registration within 10 days of publication of the notice. "Interested parties" are defined under the law as "exporters, foreign producers, importers, domestic producers, government of the exporting country" etc.

As per the procedures laid down in the Ordinance and Anti-dumping Duties Rules 2001, which are strictly in consonance with the WTO Anti-dumping Agreement, the NTC will send questionnaires to the known exporters, foreign producers and importers of the investigated product. They are required to provide the requisite information within 37 days.

Once the requisite information has been received from interested parties and examined by it, the commission would reach a preliminary determination of dumping and injury to domestic industry and impose a provisional anti-dumping duty.

The rate of such duty will be equal to the amount of dumping margin, that is, prices lower than the normal value of the product - the price at which it sells in exporting countries in the ordinary course of trade.

The provisional anti-dumping duty is imposed for a period of four months. At the end of the period, the commission is empowered to impose a definitive anti-dumping duty.

This is the 5th anti-dumping investigation initiated by the NTC. Investigations in three of the cases culminated in the imposition of definitive anti-dumping duty against the exporters from South Africa, Indonesia, France, Taiwan and Uzbekistan. The fourth case pertains to acrylic tow imported from Uzbekistan into which investigation has reached the advanced stage.