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M.R. Subramani

CHENNAI, March 28

THE Chennai-based Futura Polymers has given a price undertaking to the European Community after it was found ``dumping'' polyethylene terephthalate (PET) into the European Union.

The price undertaking means that Futura Polymers will not export to the EU below a fixed price. Futura Polymers is a subsidiary of Indian Organic Chemicals Ltd (IOCL), producing PET resins and preforms.

The EU has accepted the undertaking by the Chennai-based firm under an anti-dumping provision and agreed not to levy any duty.

The EU had found that a duty of euro 161.1 per tonne could be levied on PET exports by Futura Polymers.

PET exports by several Indian firms to the EU currently attract euro 187.7 per tonne anti-dumping duty and euro 41.3 to 84.6 per tonne countervailing duty since August 2000.

Futura Polymers came under the scanner after it sought a `new exporter review', claiming that it was not among the exporters found dumping PET and that it had not shipped any consignments during the probe period (between October 1998 and September 1999).

Following the firm's application for review, the EU launched an investigation on exports from April 1, 2000 to March 31, 2001.

This led to the finding that the Chennai firm was also dumping PET. However, the EU found out that there was no case to levy either countervailing or anti-subsidy duty against these exports.

Following the findings, Futura Polymers gave the price undertaking and agreed to allow effective monitoring by the EU.

The advisory committee of the EU agreed to accept the undertaking as it felt it would eliminate "injurious imports" into the member-countries.

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Dumping charge on PET -- Futura Polymers gives undertaking to EU

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