UK TRA recommends safeguard on PET, R-PET imports with 65% out-of-quota duty

The UK Trade Remedies Authority has recommended a safeguard measure on imports of polyethylene terephthalate (PET), including recycled PET (R-PET), after provisionally determining that increased imports caused serious injury to domestic producers, in a statement on Oct. 23.

The recommendation proposes a tariff-rate quota (TRQ) of 192,963 metric tons, with imports exceeding quota allocations subject to a 65% safeguard duty if approved by the UK government.

The inclusion of both virgin PET and R-PET means the proposed measure could affect imports of food-grade recycled pellets used by packaging manufacturers to meet recycled-content targets, potentially impacting existing procurement strategies across the UK packaging value chain.

The TRA said it had provisionally determined that increased imports of PET had caused serious injury to the UK industry. "The TRA has provisionally determined that increased imports of PET have caused serious injury to UK producers," it said, recommending a safeguard measure intended to prevent further harm while maintaining access to imported material.

Under the proposal, the EU would receive the largest country-specific quota allocation, accounting for 77.6% of the total 192,963-mt quota, while smaller allocations would be reserved for other major supplying countries. Imports within allocated volumes would continue under the TRQ, while volumes exceeding quota limits would face the proposed 65% duty.

The provisional determination does not itself impose duties; the TRA has opened a consultation on its findings and recommendations before the Secretary of State makes a final decision. Interested parties have until Nov. 22 to submit comments.

If adopted, the safeguard would apply from Dec. 1 through a quota-based mechanism covering both virgin and recycled PET imports. Market participants are expected to closely scrutinize the potential impact on domestic resin production, recycled-content supply and packaging costs as several converters have expressed concern about imposing any form of safeguarding duty.