EU duty on RI's MSG

JAKARTA (JP): The European Union (EU) will charge an anti- dumping duty of 0.143 European currency unit (ECU) on each kilogram of Indonesian Mi Won brand monosodium glutamate (MSG) following a price review by the European Commission.

The Ministry of Trade's Director for Foreign Trade Relations Hatanto Reksodiputro was quoted Saturday by Antara as saying that the price investigation was conducted upon a demand from European MSG producers.

According to Hatanto, there is a possibility that the duty might also be imposed on MSG produced by Indonesian companies which had not yet been established when the charges on dumping practices were launched for the first time in 1993.

He said the companies could even be subject to higher duties if -- based on a "best information available" assessment procedure -- they were found to sell their products at a lower price on the foreign market than on the domestic market.

The assessment is based on random price reports from European MSG producers.

EU producers have been requesting a price review since 1993. Price reviews may be conducted a year after producers have been punished for dumping practices, or five years after dumping penalties have been imposed.

Hatanto said that demands for a price review may have ensued after European MSG producers were unable to compete with Indonesian products even though they had cut prices.(pwn)