On April 3, 2025, Brazil's Secretariat of Foreign Trade published Circular No. 25 of April 2, 2025, initiating an antidumping (AD) investigation of Brazilian imports of PET resin originating from Malaysia and Vietnam.
The application requesting the initiation of the AD investigation was submitted on behalf of Indorama Ventures Polímeros S.A. and Alpek Polyester Pernambuco, who together account for 100 percent of the domestic production of PET resin. The product at issue is used in the manufacture of packaging for beverages, food and nonfood products, particularly bottles for beverages and other liquids, as well as food containers, cosmetics packaging and pharmaceutical packaging.
| PRODUCT UNDER INVESTIGATION | |
| Origin Under Investigation | Malaysia and Vietnam |
| Description | The product under investigation is technically referred to as
polyethylene terephthalate, or poly(ethylene terephthalate), with
the molecular formula C₁₀H₈O₄.
Internationally, it is known by the acronym "PET" or
"PET resin" and has an intrinsic viscosity ranging
between 0.78 and 0.88 dl/g, usually classified under subheading
3907.61.00 of the Mercosur Common Nomenclature (MCN). It is
chemically classified as a thermoplastic polyester polymer. The main raw materials used in the production of PET resin are purified terephthalic acid (PTA) and monoethylene glycol (MEG). Additionally, approximately 2 percent of isophthalic acid (IPA) and up to 1 percent of diethylene glycol (DEG) are used. In addition to these components, the production process requires the use of electricity or natural gas for heating. Other additives may also be added in parts per million to provide specific characteristics, such as gloss, transparency and color. PET is widely used in the production of packaging for beverages, food and nonfood products. PET packaging is manufactured in two main ways: (i) blow molding to create bottles or (ii) thermoforming from sheets to produce more specific items, such as delicate packaging used for bakery products. |
| MCN Classification | 3907.61.00 |
| Application | PET resin, an acronym for polyethylene terephthalate, is,
according to the petitioners, a polymer of broad applicability,
being the most practical container for storage and packaging. Like
glass, PET resin is transparent and suitable for storing food. PET
resin is, according to the petitioners, a polymer of broad
applicability, being the most practical container for storage and
packaging. Like glass, PET resin is transparent and suitable for
storing food. However, it offers advantages over glass in terms of
weight, convenience and transport safety. Its easy handling
facilitates simple transportation. Its lightness and resistance,
combined with its potential for reuse after recycling, contribute
to a more competitive cost for the final producer and greater
affordability for the consumer. Another example of its practicality and relevance is its oxygen transmission rate, an important factor in ensuring product shelf life, i.e., the duration a product can be stored before becoming unfit for use or consumption. Among its uses and applications are beverage bottles and other liquid containers, food packaging, cosmetics packaging, pharmaceutical packaging and the production of sheets, laminates and films. |
| Applicant | Indorama Ventures Polímeros S.A. and Alpek Polyester Pernambuco (responsible for 100 percent of the Brazilian production of the product) |
| Producers/Exporters | Questionnaires will be sent to known producers/exporters. The names of the known producers/exporters have not been disclosed. |
| Other Interested Parties | Pursuant to paragraph 2 of article 45 of Decree No. 8.058/2013, the following are identified as interested parties, in addition to petitioners: foreign producers/exporters from the investigated origins, Brazilian importers of the product under consideration during the dumping investigation period, and the governments of Malaysia and Vietnam. |
| Dumping Period of Investigation (P5) | July 2023 to June 2024 |
| Injury Period of Investigation (P1–P5) | July 2019 to June 2024 |
| Dumping Margin | Malaysia: Absolute margin—US$69.07 per ton. Relative
margin—6.92 percent Vietnam: Absolute margin—US$160.87 per ton. Relative margin—16.1 percent |
| Preliminary Deadlines | April 23, 2025—Deadline to register as
an interested party (20 days from publication of initiation) July 3, 2025—Deadline for submission of legal representatives (91 days from publication of initiation) |
For More Information
This Alert was authored by Veirano Advogados, a member of Duane Morris LLP's Latin America Alliance and a leading Brazilian law firm. If you have any questions about this Alert, please contact Eduardo Ramos-Gomez, head of our Latin America Business Group, Hoang Minh Duc from our Vietnam office or our affiliated Malaysian law firm, Leong Yeng Kit & Co.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
