EU Countervailing Duties on Indian PET Imports: What Businesses Need to Know
Quick answer
EU countervailing duty PET India measures impose specific import duties on polyethylene terephthalate (PET) originating in India to counteract subsidies granted to Indian producers. These duties apply to importers and exporters dealing with PET in the EU single market and are governed by a series of EU regulations that have evolved since 2000, with the latest definitive duties imposed by Commission Implementing Regulation (EU) 2025/1748 of 18 August 2025 [1].
Key takeaways
- EU countervailing duties on PET imports from India have been in place since 2000, with periodic expiry and interim reviews updating the measures [1:1].
- The duties apply to certain PET products originating in India, subject to specific thresholds and producer-specific rates [2].
- Importers and exporters must comply with customs declarations and pay the applicable countervailing duties to the relevant Member State authorities.
- The current definitive countervailing duties are imposed under Commission Implementing Regulation (EU) 2025/1748 of 18 August 2025 and remain in force unless amended [1:2].
- The regulatory framework is based on Regulation (EU) 2016/1037 on protection against subsidised imports, with procedures for expiry reviews and partial interim reviews [1:3].
- Businesses should monitor future regulatory developments and ensure compliance with EORI registration and customs obligations.
- The EU-India trade relationship and ongoing negotiations impact the broader context of these duties but do not currently affect the countervailing measures [1:4].
Who is Affected by These Duties?
The EU countervailing duty PET India measures primarily affect:
- Importers of polyethylene terephthalate (PET) products originating in India who bring these goods into the EU single market.
- Exporters in India who supply PET products to the EU and must be aware of the duties imposed on their products.
- EU producers and users of PET who may be involved in the supply chain or affected by market distortions caused by subsidised imports.
- Customs authorities in the Member States responsible for enforcing the duties and collecting payments.
All importers must ensure compliance with customs formalities, including submitting accurate customs declarations and paying the applicable countervailing duties to the relevant national competent authorities. The duties apply regardless of the size of the business, though thresholds and specific duty rates may vary by producer [1:5][2:1].
What Products are Covered?
The countervailing duties apply to certain polyethylene terephthalate (PET) products originating in India. PET is a widely used polymer in packaging, textiles, and other industrial applications. The scope of the measures covers PET in forms and specifications as defined in the original investigation and subsequent regulations.
The exact product classifications and technical specifications are detailed in the relevant EU regulations, which specify the tariff codes and product descriptions subject to the duties. Importers should consult the latest Commission Implementing Regulation (EU) 2025/1748 and related amendments to confirm the precise product coverage [1:6][2:2].
Understanding the Definitive Countervailing Duty
The definitive countervailing duty is a trade remedy imposed by the EU to offset subsidies granted by the Indian government to PET producers, which distort fair competition in the EU market.
- The duty is specific and varies by individual Indian producers, with rates ranging from EUR 0 to EUR 74.6 per tonne for named producers, and a residual duty of EUR 69.4 per tonne for all other producers [2:3].
- The duties are imposed following investigations and expiry reviews under the EU’s basic Regulation (EU) 2016/1037 on protection against subsidised imports [1:7].
- The duties must be paid by importers at the time of customs clearance in the EU.
- These measures remain in force for fixed periods, typically five years, subject to expiry reviews and possible interim reviews to assess whether the duties remain necessary and appropriate [1:8][3].
The definitive nature of the duty means it is not provisional but a confirmed measure following thorough investigation and review, ensuring legal certainty for importers and exporters [1:9].
Historical Context of EU Countervailing Measures on Indian PET
The EU has imposed countervailing duties on PET imports from India since 2000, with a series of regulations establishing, amending, and renewing these measures:
- The original investigation led to definitive duties imposed by Council Regulation (EC) No 2603/2000 [1:10].
- Subsequent amendments and accelerated reviews adjusted the duty levels, notably by Regulation (EC) No 1645/2005 and Regulation (EC) No 193/2007, which extended the duties for further five-year periods [1:11][4].
- Partial interim reviews and expiry reviews have been conducted regularly, including Council Implementing Regulation (EU) No 906/2011 and Regulation (EU) No 461/2013, ensuring the duties reflect current market and subsidy conditions [1:12][5].
- The Commission accepted minimum import price undertakings from certain Indian producers in 2000, but these were withdrawn in 2014 due to changed circumstances [1:13][6].
- The latest expiry review resulted in Commission Implementing Regulation (EU) 2025/1748, imposing definitive countervailing duties as of 18 August 2025 [1:14].
This regulatory history reflects the EU’s ongoing commitment to protecting its PET industry from subsidised imports while adhering to WTO rules and EU procedural safeguards [1:15].
Current Regulatory Basis and Key Dates
The current EU countervailing duty PET India measures are based on:
- Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016 on protection against subsidised imports, which provides the legal framework for imposing countervailing duties [1:16].
- Commission Implementing Regulation (EU) 2025/1748 of 18 August 2025, which imposes the latest definitive countervailing duties following an expiry review under Article 18 of Regulation (EU) 2016/1037 [1:17].
- Earlier regulations such as Commission Implementing Regulation (EU) No 2019/1286 and amendments in 2020 (Regulation (EU) 2020/738) also form part of the regulatory history and framework [3:1][7].
Key dates to note include:
- 18 August 2025: Entry into force of the latest definitive countervailing duties under Regulation (EU) 2025/1748 [1:18].
- Previous expiry reviews typically cover five-year periods, with duties renewed or amended accordingly [1:19][3:2].
- Partial interim reviews may be initiated ex officio or upon request to assess changes in subsidy practices or market conditions [2:4].
EU businesses should monitor expiry and interim review timelines to anticipate potential changes to duty rates or measures [2:5].
Obligations for Importers and Exporters
Importers and exporters dealing with PET products from India must observe several concrete obligations to remain compliant:
- Importers must declare the goods under the correct customs tariff codes and pay the applicable countervailing duties at importation to the customs authorities of the Member State where the goods enter the EU [1:20].
- They must hold a valid EORI number and ensure all customs documentation accurately reflects the origin and classification of the PET products.
- Exporters in India should be aware of the duty rates applied to their shipments and may need to provide relevant information to importers or EU authorities during investigations or reviews.
- Businesses should maintain records of imports and payments related to these duties for potential audits or investigations by the relevant national competent authorities.
- The duties apply regardless of the value or volume of imports, though specific duty rates may vary by producer and product type [2:6].
- Failure to comply with countervailing duty obligations can result in customs penalties, delayed clearance, or seizure of goods.
EU companies importing PET from India should establish robust compliance procedures and liaise with customs brokers or trade compliance experts to ensure all obligations are met [1:21].
Future Outlook and Compliance Considerations
The EU countervailing duty PET India regime remains in force as of 25 June 2026, with the latest definitive duties imposed by Regulation (EU) 2025/1748 [1:22]. Businesses should consider the following for future compliance:
- Monitoring regulatory updates: Expiry and interim reviews may lead to adjustments in duty rates or the form of measures. Staying informed through official EU publications and the relevant national authorities is essential [2:7].
- Trade negotiations: While the EU and India continue to engage in trade discussions, no current free trade agreement affects the countervailing duties on PET imports. Any future agreements could impact these measures but have not yet done so [1:23].
- Compliance systems: Importers should integrate countervailing duty checks into their customs compliance frameworks, including due diligence on suppliers and accurate classification of PET products.
- Engagement with authorities: Participating in public consultations or responding to Commission notices during review procedures can help businesses protect their interests.
- Risk management: Understanding the financial impact of duties and potential changes can aid in pricing, sourcing, and supply chain decisions.
Given the evolving nature of trade remedies, companies are advised to consult qualified legal counsel or their national competent authority for tailored guidance [1:24].
FAQ
Does India have countervailing duty?
India, as a WTO member, applies countervailing duties domestically and has its own trade remedy laws. However, the EU’s countervailing duties on PET imports from India are imposed by the EU to counteract subsidies granted by the Indian government to its producers [1:25].
What is the current status of the India EU FTA?
As of 25 June 2026, there is no finalized free trade agreement (FTA) between the EU and India that affects countervailing duties on PET imports. Trade negotiations are ongoing but have not yet resulted in measures modifying these duties [1:26].
Is the EU trade deal good for India?
Trade deals, once concluded, can enhance market access and reduce tariffs. However, the current countervailing duties on PET imports indicate that some sectors remain subject to trade remedies to protect EU producers. The overall impact depends on the terms of any future agreement [1:27].
Is EU India’s biggest trading partner?
The EU is one of India’s largest trading partners, particularly within goods and services trade. This relationship underscores the importance of compliance with EU trade regulations, including countervailing duties [1:28].
