Update: Malaysia imposes provisional anti-dumping duties on pet resin imports from China and Indonesia

The Malaysian government has imposed provisional anti-dumping duties on PET resin (HS Code: 3907.61.00 00)  imports from China and Indonesia, a move aimed at shielding the local industry from unfair overseas competition. The Ministry of Investment, Trade, and Industry (MITI) confirmed that the duties, ranging from 6.33% to 37.44%, took effect on January 7, 2025, under the Countervailing and Anti-Dumping Duties Act 1993.

This decision stems from an investigation initiated by MITI on August 09, 2024, following a petition by domestic producer Recron (M) Sdn Bhd. The company alleged that Chinese and Indonesian exporters were dumping PET resin into the Malaysian market at prices significantly below their costs, causing substantial harm to local industry.

While MITI claims that the provisional duties aim to prevent further injury to Malaysia’s PET resin industry, the sweeping measures—especially the 37.44% blanket duty on Indonesian imports—raise concerns about their broader implications. Industry stakeholders may question whether these actions adequately balance the interests of domestic producers with those of downstream industries reliant on PET resin, as well as the potential impact on consumer prices.

The provisional duties, effective for a maximum of 120 days, are intended as a temporary safeguard while the investigation continues. A final determination on the permanence or adjustment of the anti-dumping measures is expected by May 06, 2025.