AIPMA Stand on Import Duty
India aiming a 5 Trillion Economy Market is a going to be a remarkable step and the Government 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.
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.