Mexico makes preliminary anti-dumping ruling on PTY from China

On May 14, 2021, the Ministry of Economic Affairs of Mexico announced that it had made a preliminary anti-dumping ruling on polyester textured yarn/PTY) originating in China and India and initially ruled that temporary anti-dumping duties would not be imposed on the products involved. The Mexican TIGIE tax number of the product involved is 5402.33.01.

Source text: http://www.dof.gob.mx/nota_detalle.php?codigo=5618401&fecha=14/05/2021

According to the export data of PFY to Mexico in 2019-2020, the anti-dumping would impose limited impact on total PFY exports in China. 

Exports of PFY to Mexico amounted to 68kt and 59kt respectively in 2019 and 2020, accounting for 2.5% and 2.2% of the total PFY exports and ranking the 10th and 11th respectively among destinations. 

TIGIE tax number of products involved is 5402.33.01 in Mexico, which is expected to affect the products under DTY Hs code 54023310 in China. This product occupied high proportion in total PFY imports in Mexico, possessing 75.2% and 74.8% respectively in 2019-2020.

Exports of DTY to Mexico totaled 51kt and 44kt in 2019-2020 within China, accounting for 4.2% and 3.6% respectively of total PFY exports and ranking the 8th and 9th respectively. 

Based on the PFY export data to Mexico, the anti-dumping of it on the polyester textured yarn from China may impose limited influence on total PFY exports. In recent years, more nations imposed anti-dumping investigation or verdict on PFY originated from China, covering Brazil, Turkey, India, Malaysia and Vietnam etc. Exports of PFY, especially DTY, encountered more restrictions. Turkey, Vietnam and India enjoyed high proportion among major export destinations of China-made PFY.

Accompanied capacity of textiles and apparels increasingly started operation outside China, the capacity of DTY is expected to chase up too, which will exert big pressure on DTY export in China but may favor POY export at the same time.