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Now Open: Antidumping Investigation on Brazilian Imports of Polyester Staple Fiber (PSF) from China, India, Vietnam, Malaysia and Thailand

28/03/2024

In brief

SECEX (the Brazilian Secretariat of Foreign Trade) opened on 21 March 2024 a new antidumping investigation against Brazilian imports of polyester staple fiber (PSF), from China, India, Vietnam, Malaysia and Thailand, commonly classified under the NCM code 5503.20.90.

Polyester Staple Fibers (PSF) are widely used in the textile industry to produce a variety of products, such as general clothing, sheets, pillowcases, upholstery fabrics, carpets, ropes, tarpaulins, etc. Due to their strength, durability and ability to hold their shape, polyester fibers are also used in industrial applications such as conveyor belts and geotextiles for soil stabilization.

The full text of the SECEX Circular (in Portuguese) that opened the investigation can be accessed in this link.

Importance of stakeholder participation

Active participation of importers, exporters, and any other interested parties in the investigation could be decisive in securing a more favorable outcome. Interested parties may request to be admitted to the process until 10 April 2024, provided they demonstrate the extent to which they could be affected by the imposition of the antidumping duty.

  • Deadline for replying to the Importer’s Questionnaire30 days as of acknowledgement of receipt (presumed 3 days after the date of electronic transmission by the authority);
  • Deadline for replying to the Exporter’s Questionnaire30 days as of acknowledgement of receipt (presumed 7 days after the date of electronic transmission by the authority).

In view of the provisions of the SECEX Ordinance No. 282/2023, a proceeding for the assessment of public interest would generally only occur after the trade defense investigation is closed (kindly find details on our Legal Alert on the subject).

More details

The new investigation was initiated upon the request of the Brazilian Association of Producers of Artificial and Synthetic Fibers (“ABRAFAS”), on behalf of two of its associates, Ecofabril and Indorama, who amount to approximately 70% of the Brazilian production of polyester staple fiber.

  • Investigated products: polyester staple fiber (PSF), made from poly(ethylene) terephthalate, known as polyester or virgin polymer, which can be obtained through two production routes: DMT (Dimethyl Terephthalate + MEG) or PTA (Pure Terephthalic Acid + MEG: Monoethylene Glycol). In the case of recycled bottles, the product is mainly made from post-consumer bottles.
  • Applications: used in the textile industry to produce a variety of products, such as clothing in general, sheets, pillowcases, upholstery fabrics, carpets, ropes, tarpaulins, etc. Due to their strength, durability and ability to hold their shape, polyester fibres are also used in industrial applications such as conveyor belts and geotextiles for soil stabilization.
  • Dumping Margins:
    China             USD 467.64/t / 45%
    Vietnam         USD 385.25/t / 39.3%
    Thailand        USD 288.64/t / 26.9%
    Malaysia        USD 459.43/t / 49.1%

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*20-day deadline, pursuant to Article 45, paragraph third, of the Decree No. 8,058/2013, accounted for in a conservative manner.

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