PET exporters escape EC antisubsidy investigation<\/p>\n
JAKARTA (JP): The European Commission has withdrawn its threat
\nto impose antisubsidy measures on Indonesia's polyethylene
\nterephthalate (PET) products due to a lack of evidence.<\/p>\n
According to a letter sent by the Indonesian Ministry of
\nIndustry and Trade to the association of Indonesian PET
\nmanufacturers, the EC considered the subsidy level received by
\nthe Indonesian PET exporters insignificant enough to cause
\n"material injury" to European Union markets.<\/p>\n
"The subsidy margin for Indonesia is considered to be
\nnegligible and, therefore, it is proposed to terminate the
\nproceedings with regard to imports of PET originating from
\nIndonesia without the imposition of measures," according the
\nletter, dated Aug. 2, a copy of which made available to The
\nJakarta Post.<\/p>\n
Indonesia's PET producers have been accused of taking
\nadvantage of export subsidies given by the government through the
\nExport Service Facilitating Agency (Bapeksta) and Investment
\nCoordinating Board (BKPM) schemes.<\/p>\n
The agency scheme grants, upon application, the exemption or
\nrestitution of import duty, value-added tax and sales tax on
\nluxury goods and on the imports of raw materials for further
\nprocessing for exports.<\/p>\n
In order to obtain the exemption facilities, companies are
\nrequired to reexport 100 percent of the imported materials in the
\nform of finished goods within a period of one year starting from
\nthe date of import.<\/p>\n
In its investigation disclosure, the commission considered
\nBKPM's scheme a subsidy program but not Bapeksta's scheme.<\/p>\n
The investigation found three companies, namely PT Bakrie
\nKasei Corp., PT Indorama Synthetic and PT Polypet Karyapersada,
\nhad benefited from BKPM's export subsidy scheme, with a subsidy
\nlevel of 0.07 percent, 0.22 percent and 1.46 percent
\nrespectively.<\/p>\n
However, the commission decided not to impose antisubsidy
\nduties on Indonesia's PET exporters duties because the average
\namount of total subsidies received by the firms were considered
\ninsignificant and the BKPM subsidy program itself was not among
\nthe subsidies prohibited by the World Trade Organization's (WTO)
\nBasic Regulations.<\/p>\n
As part of the antisubsidy charge, the European Trade
\nCommission recently said it was finalizing a separate
\ninvestigation on antidumping charges, also over Indonesia's PET
\nproducts.<\/p>\n
The body said the decision on whether to impose countervailing
\nmeasures on Indonesia's PET exports would be announced this
\nmonth.<\/p>\n
The commission has so far imposed antidumping duties on at
\nleast seven of Indonesia's exports to European Union member
\nstates' markets.<\/p>\n
Indonesian bicycles and polyester fibers have been saddled
\nwith antidumping duties since 1996, polyolefin woven bags and
\nfootwear made from textiles in 1997, footwear made of leather in
\n1998, microdisks in 1999 and last month the synthetic staple
\nfibers of polyester.<\/p>\n
The Indonesian Synthetic Fiber Makers Association (APSyFI),
\nwhose members were charged by the commission with antidumping
\nduties of between 8.4 percent and 15.8 percent, plans to file
\nsuit at the WTO against the commission over the sanction.<\/p>\n
The association said the sanction, which it called baseless,
\nwould cause local producers a potential loss of about US$60
\nmillion during the first year of duty imposition alone. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pet-exporters-escape-ec-antisubsidy-investigation-1447893297",
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"sponsor": "Okusi Associates",
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