U.S. Commerce Department Confirms Indian PET Film Subsidies, Imposes Final Countervailing Duties for 2023

The U.S. Department of Commerce has issued its final determination in an administrative review, confirming that Indian producers and exporters of polyethylene terephthalate film, sheet, and strip, commonly known as PET film, received countervailable subsidies during the 2023 calendar year. This decision, announced on July 13, 2026, solidifies the basis for levying duties on these imports, directly impacting trade relations and specific Indian manufacturers operating in the global market.

The Administrative Review and its Mandate

This administrative review, covering the period of January 1, 2023, through December 31, 2023, falls under the purview of the International Trade Administration's Enforcement and Compliance division. Its purpose is to assess whether foreign governments are providing financial assistance to their industries that constitutes an unfair trade practice under U.S. law, specifically the Tariff Act of 1930. Countervailing duties are designed to offset such subsidies, ensuring a level playing field for domestic industries. The review process involves a rigorous examination of government programs and their impact on exporting firms.

Commerce published its Preliminary Results in the Federal Register on January 8, 2026, inviting comments from interested parties. Following a 60-day extension, the final results were due on July 7, 2026. The full details, including responses to comments and the analytical methodology, are documented in an accompanying Issues and Decision Memorandum, accessible through Commerce's ACCESS electronic filing system.

Key Findings on Subsidization

Central to the final determination is the finding that certain Indian producers and exporters of PET film benefited from countervailable subsidies. Commerce applies a stringent methodology, requiring evidence of a government-provided financial contribution that confers a benefit to the recipient and is specific to an industry or group of industries. In this instance, Commerce concluded that these criteria were met for the programs under review.

Specifically, the review identified significant subsidy rates for two major Indian firms:

• Cosmo First Limited was found to have received a net countervailable subsidy rate of 10.07 percent ad valorem. Commerce also determined that Cosmo Speciality Chemicals Private Limited is cross-owned with Cosmo First Limited.
• JPFL Films Private Ltd. received a substantially higher net countervailable subsidy rate of 135.38 percent ad valorem. Jindal Poly Films Limited was identified as cross-owned with JPFL Films Private Ltd.

These rates represent the percentage of the imported product's value that U.S. Customs and Border Protection (CBP) will collect as duties.

Methodology and Legal Framework

Commerce conducted this review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended. The agency's methodology, detailed in the Issues and Decision Memorandum, involved determining the existence of a subsidy, a government financial contribution, a benefit to the recipient, and the specificity of the subsidy. In certain instances, Commerce relied on