{"id":2604,"date":"2026-10-14T20:29:28","date_gmt":"2026-10-14T20:29:28","guid":{"rendered":"https:\/\/hscodematch.com\/news\/us-sets-preliminary-3-98-subsidy-duty-on-indian-pet-film-maker-srf\/"},"modified":"2026-10-14T20:29:30","modified_gmt":"2026-10-14T20:29:30","slug":"us-sets-preliminary-3-98-subsidy-duty-on-indian-pet-film-maker-srf","status":"publish","type":"post","link":"https:\/\/hscodematch.com\/news\/us-sets-preliminary-3-98-subsidy-duty-on-indian-pet-film-maker-srf\/","title":{"rendered":"US Sets Preliminary 3.98% Subsidy Duty on Indian PET Film Maker SRF"},"content":{"rendered":"\n

The United States set a preliminary 3.98% subsidy duty rate for Indian PET film maker SRF on Oct. 14, 2026.<\/p>\n

The U.S. Department of Commerce set a preliminary 3.98% subsidy duty rate for Indian plastic film maker SRF Limited on Oct. 14, 2026.<\/p>\n

The rate comes from the yearly review of an extra duty on plastic film, sheet and strip from India. The duty is known as a countervailing duty, an extra import tax that cancels out subsidies a foreign government gives its makers1<\/a><\/sup>.<\/p>\n

In short, nothing changes at the U.S. border today. If the 3.98% rate holds in the final results, SRF shipments will need a cash deposit at that rate from the date those results are published. Shipments SRF sent in 2024 will be charged the final rate.<\/p>\n

What did Commerce decide on Indian PET film?<\/h2>\n

The goods are polyethylene terephthalate film, sheet and strip, often called PET film<\/strong>. It is the thin, clear plastic film used in packaging and many industrial products. The Federal Register notice says Commerce "preliminarily determines" that SRF received subsidies from the Indian government1<\/a><\/sup>.<\/p>\n

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The preliminary results at a glance<\/h4>\n
\n \n \n
Point<\/th>Preliminary result<\/th><\/tr>\n <\/thead>\n
Goods<\/th>PET film, sheet and strip from India<\/td><\/tr>\n
Company reviewed<\/th>SRF Limited<\/td><\/tr>\n
Subsidy rate<\/th>3.98% of value<\/td><\/tr>\n
Period covered<\/th>Jan. 1, 2024, to Dec. 31, 2024<\/td><\/tr>\n
Companies dropped<\/th>Nine<\/td><\/tr>\n
Final results<\/th>Within 120 days of Oct. 14, 2026, unless extended<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n <\/div>\n<\/figure>\n

Commerce set a subsidy rate of 3.98%<\/strong> of the value of the goods for SRF1<\/a><\/sup>. This is an "ad valorem" rate, which means a percentage of the shipment’s value. The rate covers goods brought into the United States from Jan. 1, 2024, to Dec. 31, 2024<\/strong>1<\/a><\/sup>.<\/p>\n

The notice is a preliminary result, not a final one. Commerce signed it on Oct. 7, 2026, and it was published on Oct. 14, 20261<\/a><\/sup>. Interested parties can now comment before Commerce issues its final decision.<\/p>\n

Why does the United States charge this duty?<\/h2>\n

The duty rests on an order Commerce first published on July 1, 20021<\/a><\/sup>. That order found that Indian makers of PET film received government subsidies. Each year, companies can ask Commerce to review the rate for a past year.<\/p>\n

Commerce explains its test for a subsidy in the notice. A subsidy exists when a government or public body gives money or other support, the company gains a benefit, and the support goes to a specific group1<\/a><\/sup>. Commerce checks each support program against this test.<\/p>\n

For part of its findings, Commerce used "adverse facts available"1<\/a><\/sup>. This is a rule that lets Commerce fill gaps with less favorable information when it lacks full answers. The notice does not say which programs this affected. The details sit in a separate decision memo.<\/p>\n

How did the review narrow to one company?<\/h2>\n

Commerce started this review on Aug. 22, 20251<\/a><\/sup>. On Sept. 30, 2025, it picked two companies to examine closely: Polyplex Corporation and SRF1<\/a><\/sup>.<\/p>\n

On Nov. 20, 2025, the parties that had asked for the review withdrew their requests for every company except SRF1<\/a><\/sup>. The U.S. producers that brought the case kept their request for SRF. Commerce then sent its questions to SRF alone on Nov. 25, 20251<\/a><\/sup>.<\/p>\n

The review then slowed down. A U.S. government shutdown led Commerce to pause all deadlines by 47 days, and later by 21 more days1<\/a><\/sup>. Commerce also extended the preliminary deadline to Sept. 30, 2026, and then by seven days to Oct. 7, 20261<\/a><\/sup>.<\/p>\n

Which companies are dropped from the review?<\/h2>\n

Commerce dropped nine companies<\/strong> from the review because all requests to review them were withdrawn on time1<\/a><\/sup>. U.S. rules allow this when requests are withdrawn within 90 days of the start of the review.<\/p>\n

The nine companies are:<\/p>\n