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)