Dumping claims to be assessed factually: Tunky

JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo said the government's antidumping committee will determine the validity of each dumping claim filed by Indonesian businesses before raising the issue to the international level.

Tunky, who is the committee's chairman, said over the weekend the committee's assessment of a claim would be based on "solid facts".

He said investigations of an "injury" experienced by a local company were "very complicated" because the damage might have been caused by "other things" unaccounted for by the company.

Tunky said in determining the validity of a claim, the commission considered two main questions: whether the product allegedly dumped on the domestic market was cheaper than it was in its country of origin, and whether other local companies manufacturing the same product were subject to the same injury.

"Determining the second issue is much more difficult because it requires linking the injury to the alleged dumping practices," he said after attending a ceremony during which textile producers PT Argo Pantes and PT Grand Textile Industry were awarded the ISO-9002 certificate for quality management.

Tunky pointed out that an injury could have been caused not by dumping practices, but by a company's own inefficiency or failure to market a product.

The issue of dumping allegations recently emerged after the Indonesian Synthetic Fibermakers Association filed antidumping claims against polyester staple fiber imports.

Several businesspeople from the national textile association, however, have warned the government that the claims might be a "trick" by several manufacturers to lure consumers into buying their products.

The overall process of filing a dumping claim takes at least 90 days. During the first 30 days, the claim is submitted to the antidumping committee for validation by the government.

The government then informs the exporter and its government about the claim and gives them 30 days to respond.

Following the responses, provisional antidumping measures may be imposed on imports while the investigation is being completed.

The antidumping committee is expected to announce a final finding and the possible imposition of an antidumping duty 30 days after the responses are given.

Meanwhile, the president of Argo Pantes, Chan Wing Wah, after accepting the ISO-9002 certificate, said his company planned to export Rp 350 billion (US$152.17 million) or 70 percent of its sales this year, which were expected to reach Rp 500 billion.

Wah said the company aimed at reaping Rp 30 billion in net profits this year, or 88 percent higher than that of last year.

He said Argo Pantes currently exported its products to 40 countries, including the United States, Japan, European Union members and countries in the Asia Pacific.

He said in the last few years, more and more of the company's exports went to countries that did not apply a quota policy.

"In fact, exports to non-quota countries may reach 50 percent this year," Wah said.

Argo Pantes supplies its products to customers such as Arrow, Benetton, Kenzo, Levi's, Marks & Spencer, Nike, The Gap and Van Heusen. (pwn)