In a landmark decision, the National Tariff Commission (NTC) terminated a longstanding anti-dumping investigation into polyester filament yarn (PFY) imports from China and Malaysia, marking the first-ever withdrawal of duties during the investigation stage. RIAA Barker Gillette played a key role in this precedent-setting case, representing PFY importers and users in this case to safeguard the textile industry’s access to this critical raw material.
Pakistan’s textile sector, a cornerstone of the economy and a key driver of exports relies heavily on high-quality PFY. However, domestic PFY production meets only 30% of demand and often lacks the required quality and variants. Unimpeded access to imports is crucial for the industry’s global competitiveness.
Initiated in 2016, the investigation saw the NTC twice impose provisional anti-dumping duties, decisions that were subsequently set aside by the Anti-Dumping Appellate Tribunal due to errors in injury determination. The Tribunal stressed the need to consider factors beyond alleged dumping that impacted the domestic industry.
Led by Partner Mazhar Bangash, our trade law team presented legal and economic arguments before the NTC and the Tribunal. A key contention was the wrongful inclusion of fully-drawn yarn (FDY), which domestic producers did not manufacture, skewing the injury analysis. The firm also highlighted the NTC’s failure to consider other factors affecting domestic producers, such as high costs and inefficiencies and the textile sector’s lack of viable alternatives to quality PFY imports.
In its final determination, the NTC reversed its earlier stance, concluding that imposing anti-dumping duties was unwarranted and against the public interest. This decision ensures continued duty-free access to essential PFY for Pakistan’s textile manufacturers.
Regarding the successful outcome, Mazhar Bangash stated,
“This determination sets an important precedent as it marks the first instance where the Commission reversed its own decision. This outcome is particularly significant for PFY importers and users, ensuring continued access to essential high-quality materials without the burden of additional anti-dumping duties.”
Mazhar Bangash led our team on this matter, including Senior Associate Momin Taufiq and Trainee Associate Saman Shahrukh.
Please contact Mazhar Bangash for more information on trade disputes.
This article is not legal advice; it provides information of general interest about current legal issues.
RIAA Barker Gillette is Pakistan’s premier law firm, with an on-the-ground presence in four major cities in Pakistan: Karachi, Islamabad, Lahore, and Peshawar, and affiliated offices in Dubai (DIFC) and London.
The firm practices in all areas of corporate, commercial and dispute resolution law. Leading international legal directories consistently recognize the firm as a top-tier law firm in Pakistan.
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