Page 25 - Plastics News December 2019

AipmA At work

and would lead to cost increases in the value chain. industry. However, export from India to these countries
Increasing Tariff for PET will affect the processing and have marginally grown leading to huge trade imbalance.
Therefore, Industry demanded that all
existing FTA’s be reviewed and Polymers
and Products made of Polymers shall be
excluded from all FTAs.
Government of India is planning to
enforce mandatory BIS standards on
raw material. Industry felt that this
move would put small enterprises to
disadvantage and allowing imports of
semi-finished and finished products which
are made from very raw materials which
are being denied entry by imposing non-
tariff barrier to trade (NTBT) would not
be in the best interest of nation. BIS
standards should not be made mandatory
consumer segment thus tariff for PET should be retained on raw material. Industry demanded that both BIS or
to 5% to nurture consumer products consumption. It international standards should be considered at par. This
was further demanded that the custom duty on SAN would avoid unnecessary compliance burden on the raw
and ABS should be brought to 5% to nurture associated material suppliers and at the same time ensure import
industries growth.
of safe and quality material.
The plastics processing industry comprises of over On the other hand, Small units would face major
50,000 Micro and small units employing around 50 lakhs disruption if BIS standards are made mandatory on
people. It is a major contributor to the Indian economy plastics finished goods due to compliance burden, high
manufacturing goods work Rs. 3.75 Lakhs crore annually. cost of certifications and renewal, non-availability
However, it is under severe strain due to cheap imports of adequate facilities for testing and harassment
from China and other south Asian countries. Industry by authorities. BIS standards should not be made
demanded that the Delta of minimum 10% should be mandatory on plastics finished goods.
maintained between custom duty of raw material and
plastics finished goods. The plastics industry demanded that the long pending
proposal for Technology Upgradation Fund on the lines
The domestic industry is suffering due to dumping by of Textile industry should be implemented immediately
China and other countries at very cheap cost. Industry to spur export growth.
demanded that to prevent under invoicing by foreign
players, floor pricing should be established on finished Industry raised serious concerns with respect to
goods. It also demanded that The Directorate General insurance companies exponentially increasing are
of Trade Remedies should recommended anti-dumping premium for providing insurance coverage against
duty on plastics finished goods originating in or imported fire and safety. Industry is also deeply distressed
from 3 major dumpers including China for a period of as most of the insurance companies are declining
at least five years. to provide insurance coverage to MSME’s in plastics
processing industry. Industry demanded government
Existing FTAs with various countries have failed. It has to immediately roll back the increase of insurance
resulted in massive import of finished goods from FTA premium as this is detrimental to the efforts to help the
countries in to India at zero or concessional duty badly MSMEs for increasing their market share and increase
affective competitiveness of Indian plastics processing
their contribution in the GDP.

25 December 2019 Plastics News