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CBSA INVESTIGATING "PET" RESIN AGAIN

POLYETHYLENE TEREPHTHALATE ("PET") RESIN FROM CHINA & PAKISTAN

On March 19, 2025, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping polyethylene terephthalate (“PET”) resin originating in or exported from the People’s Republic of China and the Islamic Republic of Pakistan, and the subsidizing of PET resin originating in or exported from China.   This investigation was prompted by a manufacturer of similar goods in Quebec.

The goods under investigation are more specifically described as: 

Polyethylene terephthalate (“PET”) resin having an intrinsic viscosity of at least 0.70 deciliters per gram but not more than 0.88 deciliters per gram, including PET resin that contains various additives introduced in the manufacturing process, as well as blends of virgin PET resin and recycled PET, originating in or exported from the People’s Republic of China and the Islamic Republic of Pakistan, and excluding 100% recycled PET resin (the “Subject Goods”).           

Further details on the Subject Goods can be found in the notice itself.

Parallel CITT Investigation

On March 20, 2025 the Canadian International Trade Tribunal (the “CITT”) issued a notice initiating a preliminary injury inquiry in respect of the same Subject Goods, a parallel process to determine whether the alleged dumping and/or subsidy has caused or is threatening to cause injury to the Canadian industry.

Why Do I Care?

If the CBSA and CITT ultimately conclude that dumping or subsidizing of the Subject Goods has caused injury or is threatening to cause injury to the Canadian industry, Anti-Dumping Duties (“ADDs”) and Countervailing Duties (“CVD”) will be imposed, effectively increasing the costs of the Subject Goods. 

Anti-dumping investigations offer Canadian importers and foreign exporters and producers the opportunity to participate in the CBSA investigation and obtain their own specific Normal Values, which are preferable to the ADDs/CVDs payable on imports from producers who do not have Normal Values. 

It may  also be possible to request a product exclusion from the CITT on the basis that certain goods are unique and the Canadian industry is incapable of manufacturing a substitutable product.

Notably, the CBSA and CITT have investigated PET resin in the past.  In 2018, the CITT released a finding that the dumping and subsidizing of PET resin had not caused injury and were not threatening to cause injury to the domestic industry.  There is no guarantee that the decision will be the same this time around.

What is the Timeline for Next Steps? 

Under SIMA the matter will proceed along two parallel tracks:

• The CBSA will send out Requests for Information: Importers must respond by April 9^th, and exporters by April 25^th; and
• The CITT requires any interested participants and their counsel to file Forms with the CITT by April 1^st, and any opposing submissions must be filed by noon on April 17^th.

The CITT’s preliminary determination is expected by May 20, 2025, and CBSA’s preliminary determination is expected by June 17, 2025.

How do I get involved?

Specialized legal advice is generally required. Given the strict timelines, and amount of work involved in responding to CBSA and CITT questionnaires, any parties potentially impacted should contact their lawyers immediately to discuss next steps – regardless of whether you have received a questionnaire! 

For help with a Dumping Investigation or Injury Inquiry, click here.

Download a PDF copy of this Blog here.