ISLAMABAD, Nov 21: The government on Monday imposed definitive anti-dumping duties on import of Urea Formaldehyde Moulding Compound (UFMC) into Pakistan originating in and or exported from China.

The National Tariff Commission (NTC) initiated an investigation of dumping in response to an application filed with the NTC by a domestic producer of UFMC, Dynea Pakistan Limited, Karachi, under the Pakistan Anti-Dumping Duties Ordinance, 2000.

The exporters/producers selected for sampling out of 31 exporters/producers identified by the applicant were Bluestar International Chemical Company Ltd, Beijing, China (“Bluestar”), Sinochem Tianjin Import and Export Corporation, Tianjin, China (“Sinochem”), Yixing Yuntong Chemical Industry Inc, Jiangsu, China (“Yixing”).

The NTC levied definitive anti-dumping duties at the rate of 10.61 per cent, 3.43 per cent, 11.58 per cent and 7.80 per cent ad valorem of C&F price on import of UFMC from Bluestar, Sinochem, Yixing and other exporters from China, respectively. The duties will be in vogue for a period of five years effective retrospectively from July 18, 2005.

An official announcement said as required by the law, the NTC, after the initiation of investigation, sent exporter’s questionnaires to the Chinese exporters/ producers involved in dumping of UFMC into Pakistan and to the importers of the investigated product, asking them to provide information within the statutory time period of 37 days.

Out of three Chinese exporters — Bluestar, Sinochem and Yixing (selected in the sample) — two exporters, Bluestar and Sinochem, provided information/ data on exporter questionnaire. The third exporter, Yixing, did not respond to the NTC’s questionnaire and the dumping margin for it is determined on the basis of “best information available”.

NTC officers carried out on-the-spot investigations at the premises of the domestic industry and at the premises of the Chinese exporter/producer to verify the information/data provided.

Earlier, the commission exa mined and analyzed the information received from all interested parties to the investigation and made a preliminary determination on July 18, 2005 pursuant to which provisional anti-dumping duties on UFMC importable from China into Pakistan at the rate of 12.15 per cent ad valorem of C&F price for Bluestar, 4.43 per cent ad valorem of C&F price for Sinochem, 14.89 per cent for Yixing, and 9.77 per cent for all other exporters from China were levied for a period of four months effective from July 18, 2005.

Total imports of UFMC into Pakistan in 2003-04 from China stood at 3,628 tons, while from all other countries it stood at 228 tons during the same year.

This is the sixth investigation concluded under the ordinance where the commission has imposed definitive anti-dumping duties. Further, the commission has so far imposed anti-dumping duties against dumped imports from seven countries — South Africa, France, Indonesia, Taiwan, Uzbekistan, Korea and Iran.

Of the six investigations concluded, five relate to the chemicals industry: sorbitol, glacial acetic acid, acrylic TOW, PVC resin (suspension grade) and UFMC. It is interesting to note that chemicals are an industry that also figures prominently in anti-dumping actions worldwide.