Page 7 - Plastics News July 2019

THE PRESIDENT
THE PRESIDENT SAYS SAYS

AIPMA Stand on Import Duty

ndia aiming a 5 Trillion Economy Market is a going to be a remarkable step and the
IGovernment is determined for the same. Core focus on infrastructure will provide the
Plastic industry a major thrust and boost to the market. The proposed Bharatmala 2 project,
Jal Shakthi project, PPP in Railway infra projects, housing projects and other projects will
benefit the Plastic industry.
Union Finance Minister Smt. Nirmala Sitaraman has considered some of the recommendations/
suggestions provided by the industry as well as AIPMA in not increasing import duty on
Polymers. It is observed that only PVC, CPVC and LLDPE had the effect of increase in Import
duty from 7.50% to 10.00%. The Indian Chemical Council has recommended the import duty
on Polymers to be increased from 7.50% to 12.50%, however with the efforts of AIPMA Team
and other associations and industry partners, we could able to strongly submit our voice
and restrict the Import duty on only some primary raw materials/ polymers. MEELA JAYADEV
The increase in Import duty for some of the finished products will definitely boost the
domestic industry. The MSME sector is going to be benefitted by this move. Controls on
primary raw materials imports will harm the domestic finished products processors. The
domestic processors must be safeguarded for the finished product International competition
as most of the end processors are from MSME sector.

The Anti-Dumping duty on PVC Resin is extended up to 12-08-2019 and there is a relief for
Taiwan, Indonesia, Malaysia and Japan manufacturers. USA and China suppliers still continue
to have ADD on PVC Resin.

Anti-Dumping duty on CPVC is proposed by Government for imports from China and Korea.
The final notification is awaited very soon. It is really astonishing that India has consumption
of 1,50,000 Metric Tons of CPVC and it produces hardly less than 10,000 Metric tons, even
though the Ministry is imposing Anti-Dumping Duty on CPVC. This move by the Government
is going to benefit the International market players and We Indians need to pay more money
or spend more Foreign Exchange on purchase of CPVC. To safeguard a domestic CPVC
manufacturer with low production capacity, India need to pay more price there by a national
loss. The effect of the Price increase on CPVC due to ADD cannot be passed on to the market
as there is a stiff competition in the market. Further it opens doors for the Chinese finished
products to invade Indian market. This move by the Government will definitely create a
major problem for the domestic CPVC Pipe and Fittings producers.

Meela Jayadev
president@aipma.net

7 July 2019 Plastics News