DGTR Terminates Anti-Dumping Investigation on MEG Imports Impacting Pharma Packaging
New Delhi: The Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry, Government of India, has issued a notification terminating the anti-dumping investigation into imports of Mono Ethylene Glycol (MEG) from Kuwait, Saudi Arabia, and the United States.
The investigation, initially launched in June 2021, was prompted by concerns over alleged dumping of MEG into the Indian market, which was claimed to have caused injury to the domestic industry.
The investigation was initiated after India Glycols Limited (IGL) and Reliance Industries Limited (RIL), the applicants, filed a request with the DGTR citing evidence of dumping. The Authority, upon evaluating the evidence, commenced an inquiry into the alleged injury to the domestic industry, which was followed by a series of procedural steps, including submissions from stakeholders and oral hearings.
However, in its final findings dated October 27, 2022, the DGTR concluded that the domestic industry had not suffered material injury due to the imports in question. This finding was contested by Reliance Industries, which appealed to the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The tribunal directed the DGTR to reexamine the case, specifically addressing concerns about the selective examination of injury trends, leading to the remand of the matter back to the authority.
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In September 2024, the domestic industry, Reliance Industries Limited requested the termination of the investigation, citing that the data from the period under investigation was now outdated, and no longer reflected the current market conditions. In compliance with Rule 14(a) of the Anti-Dumping Rules, which mandates the termination of investigations if the domestic industry requests it in writing, the DGTR has officially ended the investigation. It noted;
"In view of the request made by the domestic industry and under the provisions of Rule 14(a) of the Rules, the Authority hereby terminates the investigation initiated on June 28, 2021."
Mono Ethylene Glycol (MEG) is a key raw material used in the production of polyethylene terephthalate (PET) resins. PET, a durable, transparent, and lightweight plastic from the polyester family, is widely used in manufacturing plastic bottles for pharmaceutical packaging. As a result, ensuring the quality of PET is of significant importance in the pharmaceutical industry.
