Malaysia imposes five-year anti-dumping duties on PET imports from China and Indonesia to protect its domestic industry from unfair pricing.
Malaysia has confirmed the implementation of anti-dumping duties on polyethylene terephthalate (PET) resin imports originating from China and Indonesia. This decision, officially announced by the Ministry of Investment, Trade, and Industry (MITI), follows a detailed investigation that began on August 9, 2024. The duties were introduced in response to findings that PET imports from these two countries were being sold in Malaysia at prices significantly lower than their respective domestic market prices, a practice known as "dumping." This underpricing was determined to have caused material injury to Malaysia鈥檚 local PET industry.
As a corrective measure, Malaysia has imposed varying duty rates depending on the country of origin. Imports of PET from China will be subject to anti-dumping duties ranging between 2.29% and 11.74%, depending on the exporter involved. For PET imported from Indonesia, a uniform anti-dumping duty of 37.44% has been established. These duties aim to level the playing field for domestic manufacturers by offsetting the unfair price advantage enjoyed by foreign exporters due to dumping.
The investigation concluded that the domestic PET industry had suffered losses due to the lower-priced imports, with local manufacturers facing declining market share, reduced production, lower profitability, and increased inventory levels. These negative impacts were directly linked to the presence of dumped products in the Malaysian market.
The newly imposed duties will be effective for a five-year period, starting from May 7, 2025, and extending until May 6, 2030. This duration is standard under World Trade Organization (WTO) guidelines for anti-dumping measures and is designed to give the domestic industry sufficient time to recover and stabilize under fairer market conditions.
The move by Malaysia mirrors similar actions taken globally to address unfair trade practices in the PET sector. Notably, in April 2024, the European Union (EU) imposed anti-dumping tariffs ranging from 6.6% to 24.2% on specific PET imports from China. The EU is also currently reviewing potential anti-dumping duties on PET imports from Vietnam, signaling a broader global trend toward protecting domestic industries from unfair pricing strategies in international trade.
Malaysia鈥檚 decision underscores its commitment to fair trade practices and its intent to support the sustainability and competitiveness of its domestic manufacturing sector. It also sends a clear message that the country will take firm action when there is credible evidence of injury caused by unfair import pricing. The imposed duties are part of Malaysia鈥檚 broader trade defense mechanisms to shield local producers from the adverse effects of global dumping practices.
