Polyester makers file dumping claim with government<\/p>\n
JAKARTA (JP): The Indonesian Synthetic Fiber-Makers
\nAssociation has asked the government to impose a 40 percent
\nprovisional antidumping duty on polyester staple fiber imports
\nfrom South Korea and Taiwan.<\/p>\n
The association's chairman, A.A. Baramuli, said here yesterday
\nthat the proposal was submitted on Wednesday to the minister of
\nindustry and trade, who is also vice chairman of the Indonesian
\nantidumping committee. The aim is to defend the local polyester
\nfiber manufacturing industry from South Korean and Taiwanese
\nimports allegedly sold at dumping prices.<\/p>\n
Baramuli said the imports are currently sold in Indonesia at
\nUS$1 per kilogram, less than domestic polyester fiber, which has
\ndropped to $1.10 per kg from $1.40 in January due to the imports.<\/p>\n
Prices in South Korea and Taiwan are presently $1.40 per kg.<\/p>\n
\"The association's proposal is the first to be submitted (to
\nthe anti-dumping committee) and it may well be followed by other
\nindustries,\" Baramuli told a press conference yesterday.<\/p>\n
He was accompanied by executives of various fiber
\nmanufacturing firms, including S.P. Lohia from PT Indo-Rama
\nSynthetics, T. Kondo from PT Indonesia Toray Synthetics and S.K.
\nAgrawal from the Shinta Group.<\/p>\n
Baramuli said the alleged dumping practices, which started in
\nJanuary, have forced local producers of polyester fiber to sell
\nproducts at prices significantly below the production cost of
\n$1.30 per kg.<\/p>\n
\"With a production of about 350,000 tons a year and a current
\nprice of $1.10 per kg, we may be losing $70 million a year,\"
\nBaramuli said, referring to the combined production capacity of
\nthe association's 16 members.<\/p>\n
He said that six Taiwanese firms and five South Korean firms
\nare guilty. However, antidumping measures -- once they are
\nreached -- will apply for all polyester fiber producers in those
\ntwo countries.<\/p>\n
The government introduced antidumping and countervailing
\nmeasures in its most recent deregulation package issued earlier
\nthis month, to counter unfair trade practices by foreign
\nentities. The measures conform to the rules of the World Trade
\nOrganization.<\/p>\n
Since then, an Indonesian antidumping committee -- headed by
\nthe minister of finance -- was called for, but its establishment
\nhas yet to be completed as its members have not been appointed.<\/p>\n
Process<\/p>\n
Roger D. Simpson, a lawyer from Roger D. Simpson & Associates,
\nwhich has been appointed to represent the association in this
\ncase, said the low prices of polyester fiber in South Korea and
\nTaiwan are the result of decreasing demand from downstream
\nindustries.<\/p>\n
South Korea, for instance, produced 450,000 tons of polyester
\nfiber last year, but only 180,000 tons were used by the country's
\ndownstream industries.<\/p>\n
This situation, he said, has left substantial amounts of the
\npolyester fiber industry floating around, and has led producers
\nto enter the export market.<\/p>\n
Simpson explained that the overall process will take at least
\n90 days.<\/p>\n
After 30 days of the proposal being submitted to the
\nantidumping committee, the government is expected to be able to
\ncomment on the validity of the claims.<\/p>\n
The government will then inform the exporters and the
\ngovernments of the two countries of the result and give them
\nanother 30 days to respond.<\/p>\n
Following their responses, provisional antidumping measures
\nmay be imposed on imports while the investigation is being
\ncompleted.<\/p>\n
\"We have proposed a provisional antidumping duty of 40
\npercent. This is expected to approximate the margin of dumping
\nand prevent further severe losses caused by dumping while the
\nclaims are being investigated,\" Simpson said.<\/p>\n
The government is expected to announce a final finding and the
\npossible imposition of antidumping duty 30 days after the
\nresponses are given.<\/p>\n
\"A downward trend of prices is expected to continue and this
\nmay severely injure Indonesia's polyester fiber industry. The
\ngovernment has the right to protect this industry,\" Simpson said.
\n(pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/polyester-makers-file-dumping-claim-with-government-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}