Pakistan imposes 9.03% provisional duty on Chinese pharmaceutical packaging foil

Pakistan has imposed a provisional anti-dumping duty of 9.03% on imports of aluminum foil used in pharmaceutical packaging from China for four months after a preliminary investigation found that the imports were sold at dumped prices and caused material injury to the domestic industry.

The National Tariff Commission (NTC) said the duty applies to Alu Alu foil, including cold-forming foil and tropical foil, classified under Pakistan Customs Tariff codes 7607.1990 and 7607.2000.

The duty will take effect from the date the commission's notice is published in the press.

Why has Pakistan imposed a duty on Chinese aluminum foil?

The NTC found preliminary evidence that Chinese imports were being sold in Pakistan at dumped prices, undermining domestic producers. The commission reported rising import volumes, lower market share and declining profitability in the local industry. It imposed a 9.03% provisional duty to prevent further injury while the investigation continues.

The commission initiated the investigation on July 23, 2026, following an application by Lahore-based Zenith Packages Industries (Pvt.) Ltd.

The inquiry sought to determine whether imports from China were being sold at dumped prices and whether those imports had harmed local manufacturers.

According to the commission, its preliminary findings showed a significant increase in dumped imports, along with price undercutting, price depression and price suppression.

The investigation also identified declines in domestic producers' market share, sales, production, productivity, capacity utilization, profits, profitability and return on investment.

Other adverse effects included negative impacts on inventories, salaries and wages, growth and the industry's ability to raise capital.

What is Alu Alu foil used for?

Alu Alu foil is a packaging material used by pharmaceutical and nutraceutical manufacturers to protect tablets and capsules.

It combines aluminum with specialized polymers, including oriented polyamide film and polyvinyl chloride, to produce blister packaging that protects medicines from moisture, oxygen, heat and light.

The provisional duty applies to the specified packaging materials originating in and/or exported from China, rather than all aluminum products imported into Pakistan.

The NTC set the duty at 9.03% ad valorem, based on the injury margin, opting for a lower rate than the dumping margin because it considered that sufficient to address the injury suffered by domestic producers.

Investigation continues ahead of final decision

The investigation examined alleged dumping between April 1, 2025, and March 31, 2026, while the assessment of material injury covered April 1, 2023, through March 31, 2026.

The commission said it received a response to its exporter questionnaire from one Chinese exporter and producer, Yangzhou Jerel Pharmaceutical New Material Co. Ltd.

An individual dumping margin was determined for the company using the information it provided.

Registered interested parties may request a hearing within 15 days of publication of the notice in the press, in accordance with the Anti-Dumping Duties Rules, 2022.

The NTC is required to make a final determination within 180 days of publication of the preliminary determination notice.

The provisional duty is intended to prevent further material injury to the domestic industry while the investigation continues.