India terminates safeguards investigation into PVC imports from Japan

India has decided to terminate the bilateral safeguards investigation into import of PVC suspension grade resin from Japan following submission by domestic industry for withdrawal of the investigation, Directorate General of Trade Remedies said in a notification.

Market sources said over the last few months, the safeguard investigation has led to apprehension among importers over import of PVC from Japan, and termination of the investigation is expected to allow smoother imports of PVC from Japan.

Japan is one of the largest exporters of PVC to India. According to customs data, India imported about 1.62 million mt PVC in 2020, of which about 411,513 mt, or 25.4%, was from Japan.

India levies 10% customs duty on import of PVC. But under the India-Japan Comprehensive Economic Partnership Agreement, PVC imports from Japan are duty-free.

India's PVC producers DCW Ltd., DCM Shriram Ltd. and Chemplast Cuddalore Vinyls Ltd. had filed a petition with the Directorate General of Trade Remedies in 2020 seeking safeguard duty on import of PVC from Japan, saying imports from Japan had increased due to the preferential duty, leading to "serious injury" to the domestic producers.

The investigating authority had launched the bilateral safeguards investigation into PVC imports from Japan on Sept. 8, 2020.