Pakistan NTC ADC-65 — Definitive Anti-Dumping Duty on Polyester Filament Yarn (Drawn Textured Yarn) from China

Mechanism

The NTC conducted the ADC-65 investigation under Pakistan's Anti-Dumping Duties Act 2015 and the Anti-Dumping Duties Rules 2022, consistent with the WTO Anti-Dumping Agreement (Article VI GATT 1994). The investigation was triggered by petitions from M/s Gatron Industries Limited (Karachi) and M/s Rupali Polyester Limited (Lahore), both primary producers of Drawn Textured Yarn in Pakistan, which provided evidence of below-cost Chinese import prices and resultant material injury (price undercutting, declining capacity utilisation, revenue and margin erosion in the domestic PFY-DTY sector).

Product scope: Polyester Filament Yarn — Drawn Textured Yarn (DTY), classified under Pakistan Customs Tariff HS heading 5402.33 (textured yarn of polyesters, single, untwisted or with twist ≤50 turns/m). DTY is produced by false-twist texturising of partially oriented yarn (POY) and is the dominant polyester-yarn input for Pakistan's weaving, knitting, and apparel manufacturing sectors.

Provisional phase: The NTC made an affirmative preliminary determination on 15 November 2024 and imposed provisional anti-dumping duties for a statutory four-month period. The provisional rate was set below the definitive level, consistent with NTC practice of front-loading protection without over-collecting duties.

Final determination: On 19 June 2025, the NTC issued the final determination confirming injurious dumping and raising the definitive duty to a 13.84% ad valorem average. Per the Anti-Dumping Duties Act 2015, the difference between provisional and definitive rates shall not be recovered retroactively. The definitive duty runs for five years from the provisional start date (15 November 2024) unless a sunset review is initiated before expiry.

Dumping mechanics: China is the dominant global PFY-DTY exporter, with structural cost advantages derived from surplus POY / petrochemical feedstock capacity and state-directed polyester-fibre expansion under China's synthetic-textile industrial policy. Export prices from Chinese producers were found to be materially below the constructed normal value, enabling systematic under-cutting of Pakistani domestic producer pricing.

Downstream implications

• Pakistan's weaving and knitting mills — primary downstream consumers of PFY-DTY — will face

a ~14% landed-cost increase on Chinese-origin DTY, likely prompting partial sourcing shifts to non-dumped origins (India, Indonesia, Taiwan, Vietnam) or to domestically-produced yarn from Gatron, Rupali, and Ibrahim Fibres.

• Pakistan Yarn Merchants Association (PYMA) has vocally opposed the duty and separately

demanded zero regulatory duty on DTY and uniform tariff treatment of related fibres (FDY, POY), signalling downstream industry lobbying pressure that may constrain future NTC action on adjacent yarn categories.

• This is the second NTC final-determination anti-dumping action filed on the IPTM register

(alongside ADC-66 BOPP tapes), establishing Pakistan as an active bilateral trade-remedy issuer against Chinese excess-capacity exports in the 2025 docket.

• ADC-65 sits within the broader global pattern of EM governments invoking national AD

frameworks against Chinese excess-capacity exporters in commodity-intermediate sectors — PFY-DTY joins PTFE chemicals (India DGTR), met-coke (India DGTR multi-country), LFT cryogenic equipment (India DGTR), and steel bolts (Australia ADC) in the 2025–26 cohort.

• A prior NTC sunset review on PFY (ADC 46/2015/NTC/PFY/SSR/2022) indicates this product

category has long been a chronic dumping target; the new ADC-65 investigation restarts the protection clock on modernised injury findings.

Open questions

• Whether NTC will issue individual exporter-specific duty rates for cooperating Chinese

exporters (vs. the current 13.84% composite weighted-average rate).

• Whether the PYMA lobbying campaign will succeed in obtaining a regulatory-duty waiver or

tariff reclassification that offsets the AD duty impact for downstream converters.

• Scope-extension risk: NTC may initiate follow-on investigations into adjacent polyester

yarn categories (FDY, POY, IDY) if dumping injury recurs after DTY protection is in place.

• Sunset-review timeline: the five-year definitive period expires ~November 2029; a sunset

review petition from domestic industry is likely before that date.