Now Open: antidumping investigation on Brazilian imports of polyethylene resins from the USA and Canada
In brief
SECEX (the Brazilian Secretariat of International Trade) initiated an antidumping investigation against Brazilian imports of polyethylene resins from the USA and Canada on 14 November 2024, commonly classified under the NCM codes 3901.10.30, 3901.20.29, and 3901.40.00.
The polyethylene resins under investigation have varied industrial applications and are used, for example, as inputs for plastic packaging for food and medicines, plastic films, bottle caps, buckets, tanks, disposable diapers and absorbents, among others.
The investigation may result in the imposition of antidumping measures and the consequent increase in the cost of Brazilian imports of polyethylene resins for a period of five years.
The original text of the Official Notice of Initiation of the antidumping investigation (in Portuguese) is available in the following link.
Relevance of stakeholder participation
Active participation of importers, exporters, and any other interested parties in the investigation may be decisive in securing a more favorable outcome. Interested parties can request to be admitted as parties in the investigation until 4 December 2024*, provided that they demonstrate the extent to which they could be affected by the imposition of the antidumping duty.
- Deadline for replying to the Importer’s Questionnaire: 30 days as of acknowledgement of receipt (presumed 3 days after the date of electronic transmission by the authority);
- Deadline for replying to the Exporter’s Questionnaire: 30 days as of acknowledgement of receipt (presumed 7 days after the date of electronic transmission by the authority).
Usually, a public interest assessment may be requested only after the conclusion of the trade remedies investigation, as established by SECEX Ordinance No. 282/2023 (additional information is available in our Legal Alert on the subject).
More details
- Petitioner: Braskem S.A., responsible for all polyethylene resin production in Brazil in the period analyzed;
- Investigated product: Polyethylene resins in primary from, not containing fillers, with or without additives or pigments;
- The following were excluded from the scope of the investigation: (i) recycled polyethylene resins; (ii) by-products of polyethylene resins; (iii) polyethylene resins classified under NCMs 3901.20.21, 3901.30.10 and 3901.30.90; (iv) polyethylene resins classified under NCM subheading 3901.90 and its sub-items; and (v) resins with fillers, classified under NCMs 3901.40.00 and 3901.10.10.
- Uses: polyethylene resins are divided into the following families, with the following main applications:
- High-density polyethylene – HDPE: manufacture of buckets, bottle and jar caps; beverage crates; water tanks; barrels and tanks from 60 to 250 liters; detergents, cosmetics and pesticides packings; water and gas pipes; metal pipe coating; plastic bags; food, fibers and monofilaments flexible packaging;
- Low-density polyethylene – LDPE: manufacture of films for industrial and agricultural packaging; for food packaging; laminated and plasticized films for food; packaging for pharmaceutical and hospital products; wire and cable coating; among others;
- Linear low-density polyethylene – LLDPE: used in various applications in blends with HDPE and/or LDPE to manufacture films for industrial use; food packaging; disposable and absorbent diapers; tarpaulins in general; wire and cable coating; flexible covers for utensils and water tanks.
- Metallocene linear low density polyethylene – MLLDPE: special films; films for industrial use; technical reels for food or industrial packaging where better mechanical, optical and sealing properties are required;
- Ultra-high molecular weight polyethylene – UHMWPE: in the mining industry, used in linings, mixers, scrapers, bearings and pipes; in the chemical industry, used in pipes, pumps, valves, filters, gaskets, metal and concrete tank linings; in the food and beverage industry, used as guides for packaging lines, conveyors, rollers, filling nozzles and pumps.
- Dumping margins:
- USA: 220.95 USD/t / 21.4%;
- Canada: 264.99 USD/t / 26.9%.
