Page 38 - Plastics News March 2018

internAtionAL news

US starts duty probe against Industry calls for 'broad and

PTFE resin from India deep' investigation into UK
plastic waste tax
ven as US President Donald Trump has raised the
Ebogey of trade war with virtually every country in he UK government is launching a public consultation
the world, America has initiated a countervailing duty Ton how to tax single use plastics, chancellor Philip
investigation against import of a specialised kind of Hammond told the Parliament on 13 March. Delivering
plastic - polytetrafluoroethylene (PTFE) resin - from India. his statement, Hammond said the call for evidence
According to reports, the US Department of Commerce was to follow up on “the vital issue of plastic littering
will determine whether Indian producers of PTFE resin and the threat to our oceans.”As an incentive,
are receiving unfair government subsidies. the government is also planning to award £20m to
businesses and universities to come up with rapid
solutions during the call for evidence.
The government, according to Hammond, will look at
the whole supply chain for single use plastics, including
alternative materials, reusable options and recycling
opportunities. The money raised from the tax, said
Hammond, will be used for technological progress and
changing behaviours towards plastics. “Not as a way
of raising revenue, but as a way of changing behaviour
and encouraging innovation,” he noted. The chancellor
also pledged that the government would invest in
developing “new, greener, products and processes” with
the revenues raised.In response to the announcement,
“The Department will act swiftly while ensuring a the British Plastic Foundation (BPF) welcomed the
full and fair assessment of the facts,” US Secretary decision, saying "everyone in this debate wants the
of Commerce Wilbur Ross was quoted as saying. “The same thing: to reduce plastic waste so we leave the
Trump administration is committed to the enforcement environment in a better place for generations to come.
of America’s trade laws that ensure US businesses and "So as the experts on plastics we welcome this call for
workers have a fair chance to compete.”According to evidence. We support interventions that encourage
Ross, exporters of PTFE resin from India to the US received reusable and recyclable plastic, as well as measures
countervailable subsidies of 3.9 per cent. As a result, that reduce litter and improve recycling," said the BPF,
the Commerce Department will instruct US Customs and
Border Protection to collect cash deposits from importers
of PTFE resin based on these preliminary rates. In 2016,
imports of PTFE resin from India were valued at an
estimated $14.3 million.

In its investigation at the complaint of Chemours
Company FC LLC, the Commerce Department calculated
a preliminary subsidy rate of 3.9 per cent for the sole
mandatory respondent, Gujarat Fluorochemicals Limited.
This subsidy rate also applies to all other Indian producers but warning that the 'devil will be in the detail'. "We
and exporters. The Commerce Department is scheduled must not lose sight of the broader point that there are
to announce its final determination on May 15. many positive uses for plastic in our society – from our
hospitals to food security," the trade body said.

Plastics News March 2018 38