Preliminary Duties on PET Resin from China, Pakistan

Summary#

On June 17, 2025, the Canada Border Services Agency (CBSA) made preliminary findings that polyethylene terephthalate (PET) resin from China and Pakistan is being dumped, and that PET resin from China is being subsidized. Provisional duties start on affected imports released from the CBSA, and the Canadian International Trade Tribunal (CITT) will hold a full inquiry and aim to make a final order or finding within 120 days after receiving the notice.

What it does#

• Declares preliminary determinations of dumping for PET resin originating in or exported from China and Pakistan.
• Declares preliminary determinations of subsidizing for PET resin from China.
• Covers PET resin with an intrinsic viscosity of at least 0.70 decilitres per gram but not more than 0.88 decilitres per gram, including resin with additives and blends of virgin and recycled PET, but excluding 100% recycled PET resin.
• Lists the tariff classification numbers that may be used for these goods: 3907.61.00.00, 3907.69.00.10, 3907.69.00.80, 3907.69.00.90. (These codes include some non-subject goods as well.)
• Imposes provisional duties on subject goods released from the CBSA during the period starting June 17, 2025 and ending on the earlier of:
  • the day the investigations are terminated,
  • the day the CITT makes an order or finding, or
  • the day an undertaking is accepted.
• Says provisional duties will not exceed the estimated dumping margin and the estimated amount of subsidy.
• Notes that the Customs Act governs how provisional duties are accounted for and paid, and that interest rules under that act apply if duties are not paid on time.
• Promises a Statement of Reasons within 15 days of the decisions, to be posted on the CBSA website.
• Starts a CITT inquiry into whether the dumping and subsidizing have caused injury, retardation, or threaten to cause injury; the Tribunal will complete its process within 120 days after it receives the notice of preliminary determinations.

Who's affected#

• Importers who bring the specified PET resin from China or Pakistan into Canada.
• Canadian producers of PET resin, who are parties to the investigation and may see relief if injury is found.
• Businesses that buy PET resin in Canada (for example, bottle and packaging manufacturers) could notice changes in costs or supply if duties are applied.
• Customs brokers and others who handle import clearances, because provisional duties and Customs Act procedures now apply.

Why it matters#

• Provisional duties can raise the immediate cost of importing the covered PET resin. That can increase prices for Canadian companies that use PET resin and possibly for consumers.
• The inquiry could lead to longer-term duties or trade remedies if the CITT finds injury; that would change trade flows and commercial decisions in the plastics and packaging sectors.
• The timeline is short: provisional duties began on June 17, 2025, a Statement of Reasons is due within 15 days, and the Tribunal aims to issue a final order or finding within 120 days. This creates near-term uncertainty for affected businesses.