Update: Malaysia imposed a definitive ADD on PET imports from China and Indonesia

On 6 May 2025, the Malaysian government announced the imposition of definitive anti-dumping duties (ADD) on imports of PET resin (HS Code: 3907.61.00 00) originating from China and Indonesia. The decision is aimed at protecting the domestic PET industry from the adverse effects of unfairly priced imports.

According to the Ministry of Investment, Trade and Industry (MITI), the duties took effect on 7 May 2025 and will remain in force for five years, expiring on 6 May 2030. The measure is implemented under the Countervailing and Anti-Dumping Duties Act 1993.

The anti-dumping investigation was initiated by MITI on 9 August 2024, following a formal petition filed by local producer Recron (M) Sdn Bhd. The petitioner alleged that PET resin from China and Indonesia was being dumped into the Malaysian market at prices significantly below the normal value, thereby causing material injury to the domestic industry.

In its official statement, MITI noted, “With the imposition of anti-dumping duties on imports of the subject merchandise from the named countries, it is expected that the issue of unfair trade practices will be addressed.”

The decision has drawn a cautious response from Indonesia. The Indonesian Ministry of Trade has indicated it will closely monitor the development and may escalate the matter to the World Trade Organisation (WTO) if necessary.

“We are observing both the procedural and substantive aspects of the case. Should legal action at the WTO be warranted, it will be pursued by the competent authorities,” said Djatmiko Bris Witjaksono, Director General of International Trade Negotiations at Indonesia’s Ministry of Trade.

Local media reports suggest the Indonesian government is conducting an ongoing assessment of trade remedy measures adopted by partner countries, including Malaysia, particularly those affecting key export sectors.