Page 7 - Plastics News June 2019

THE PRESIDENT
THE PRESIDENT SAYS SAYS

Plastics and ease (?) of doing business…

n occasion of WORLD ENVIRONMENT DAY on 5th June, we congratulate and thank all the
OPlastic manufacturers for their contribution for protecting and saving the Environment.

We, the Plastic product manufacturers are the real saviours of the Environment as we are
providing green products to save the Environment by replacing the conventional products with
Plastics. The misled society treat plastic as a hazard for the Environment, however Plastic
is the Environment friendly product. May be few of the end products causes environmental
problems because of the society littering habits, which are attributed to Plastics and termed
Plastic as an environmental hazardous product, but, in fact majority of the people believe
PLASTIC as a versatile and eco-friendly product. We need to focus on Plastics advantages and
inculcate the good littering habits in the society by proper promotion and education.

ICC (Indian Chemical Council) has given representation to Government of India to increase the
Basic Customs Duty (Import Duty) from 7.50% to 12.50% on almost all Plastic raw materials. MEELA JAYADEV
ICC claims that the Customs duty is lower in comparison with Indonesia, Brazil, Philippines
and Malyasia. ICC claims that either the margins are poor in manufacturing the Plastic raw
materials or they have excess capacity of Plastic raw material production, hence they need
protection by way increasing the Import duty.
PVC Resin has Anti-Dumping duty for protecting the domestic manufacturers interest for more
than 10 years and still prevailing, in spite of the same, they do not increase the production
capacity of PVC resin and now claim that the margins are low, hence they need protection
by increasing the Customs duty.

ICC claims that PP, PE and Polystyrene has excess capacity, hence need protection by increasing
the Customs duty. Import duty on SAN and ABS also to be raised from 7.50% to 12.50% as
they made large investments in capacity addition and the duty has to be at par with other
Polymers, though there is no need for increase in Duty structure.In case of PET, the duty need
to be raised from 7.50% to 12.50% on account of investments made in the projects and being
Net Exporter of the PET Resin.
Now, it is clear that ICC is asking for Customs duty increase for the benefit of the Plastic Raw
material manufacturing companies irrespective of their capacities, capacity enhancements
and their capacity utilisation. ICC do not worry about the MSME sector. Are these raw material
manufacturers have not made their calculations before increasing their capacities, if so,
why they increased the capacities where they do not have the margin. They could have not
increased the capacities as in the case of PVC.
The prices are Plastic raw materials are at par with Global manufacturers. They have good
margins, which can be verified with the Polymer manufacturing companies’ strong balance
sheets. Polymer manufacturing companies do not invest on low margin products despite the
protection, which is evident with PVC case. They invest on high margin products only. Global
slowdown for some of the products for certain period cannot be applied and take a decision
on increase in Customs duty, which is going to be a major setback to MSME sector.

We at AIPMA strongly oppose for the increase of Customs duty proposal sent by ICC. And AIPMA
team will submit the strong counter for the ICC request.
Meela Jayadev
president@aipma.net

7 June 2019 Plastics News