Fiber association asks EU to drop dumping charges

Fiber association asks EU to drop dumping charges

JAKARTA (JP): The Indonesian Synthetic Fiber Makers
Association (APSyFI) has asked the European Union (EU) member
countries to drop the dumping charges imposed by the European
Commission on all Indonesian polyester staple fiber (PSF)
products, an important raw material for textiles.

The association said in a statement on Monday the allegation
of dumping, injury and casualty claimed by the Commission were
basically unfounded.

It also said the Commission's move to charge all Indonesian
producers with dumping practices was unacceptable, as not all of
them were exporting their products to European countries or
selling products at dumping prices at the time of the
investigation by the Commission's investigators in September last
year.

The association also noted that Indonesia's share in the EU's
PSF imports was too small to be considered injurious.

It did not specify the nature of Indonesian PSF exports to EU
countries, but it said the cumulative share of Indonesia,
Australia and Thailand account for only 8.97 percent of all EU
PSF imports.

"APSyFI would appeal to member states of the European Union to
convince the European Commission that dumping allegations toward
Indonesia should be reconsidered for the mutual benefits of trade
relations between Indonesia and European countries," the
association said.

The association said the Commission started an antidumping
proceeding against Indonesia, Australia and Thailand on April 22,
1999 based on a petition by the International Rayon and Synthetic
Fibers Committee (CIRFS). The petition was filed against
exporters of PSF used for spinning purposes.

On Jan. 20, 2000, after sending a team of investigators to
Indonesia on a fact-finding mission, the Commission imposed a
provisional antidumping duty of up to 10 percent on Indonesian
producers.

On April 28, 2000, the Commission issued the "final
disclosure" on the case, charging all Indonesian producers an
antidumping duty of between 5.2 percent and 15.8 percent, the
association said.

However, according to the association, the Commission needs
approval from the EU member states to make it a "definitive
antidumping duty". The Commission expects to obtain the approval
next month.

The association said the Commission made the dumping
allegation despite claims by many Indonesian producers that they
have never dumped their products in EU countries.

Many Indonesian producers could not counter the decision
because they could not afford international lawyers to fight for
their interests.

"The legal assistance is considered too expensive for most
Indonesian companies compared with the amount of the transaction
itself. Therefore, fairness should ultimately be based on factual
information, not merely by legal representation," the association
said.

In terms of synthetic fiber production, Indonesia is ranked
sixth in Asia after Taiwan, Korea, China, India and Japan. The
products are mostly sold domestically with an annual sale of Rp
3.15 trillion (US$375 million). Annual exports are valued at
US$217 million, with Europe as the main export destination. (jsk)