Provisional Duties on PET Resin Imports

Summary#

On June 17, 2025, the Canada Border Services Agency made preliminary findings that polyethylene terephthalate (PET) resin was dumped into Canada from China and Pakistan, and that PET from China was subsidized, under the Special Import Measures Act. As a result, provisional duties can be charged on affected imports while the Canadian International Trade Tribunal carries out a full injury inquiry.

What it does#

• Announces preliminary determinations of:
  • dumping of PET resin from China and Pakistan; and
  • subsidizing of PET resin from China.
• Says provisional duties are payable 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 Canadian International Trade Tribunal makes an order or finding, or
  • the day an undertaking is accepted.
• Lists the tariff classification numbers that may cover the goods (these codes include both subject and non-subject goods): 3907.61.00.00, 3907.69.00.10, 3907.69.00.80, 3907.69.00.90.
• Limits provisional duties to no more than the estimated margin of dumping and the estimated amount of subsidy.
• Notes that the Customs Act applies to the accounting and payment of those duties (late payment can trigger interest charges).
• Promises a Statement of Reasons to be published on the CBSA website within 15 days.

Who's affected#

• Importers and distributors of PET resin into Canada.
• Companies that use PET resin (for example, makers of plastic bottles, food and consumer packaging, and other PET-based products).
• Exporters and producers in China and Pakistan whose shipments to Canada might be judged “subject goods.”
• Customs brokers, warehouses, and other supply-chain businesses handling PET resin imports.
• The notice warns importers that the listed tariff codes cover both subject and non-subject goods, so some shipments under those codes may not be affected.

Why it matters#

• Provisional duties increase the immediate cost of importing the targeted PET resin. That can raise costs for businesses that buy PET resin and, potentially, prices for consumers.
• The measures are temporary while the Canadian International Trade Tribunal conducts a full injury inquiry and must issue a decision within 120 days after receiving notice of these preliminary determinations. That decision could lead to longer-term duties, removal of duties, or other outcomes.
• The forthcoming Statement of Reasons (available on the CBSA website) will explain the evidence behind the preliminary findings and help affected parties understand next steps.