Govt imposes antidumping duty on paracetamol imports

The Jakarta Post, Jakarta

The government has imposed antidumping duties on all imports of paracetamol from China and the U.S. effective as of Oct. 25, the Ministry of Finance said.

"The duties have been imposed to protect the local industry," the ministry said in a statement released on Wednesday.

"The Indonesian Antidumping Committee has found evidence (of dumping from China and the U.S.) through investigations conducted since Sept. 2003."

The duty is valid for five years, but can be reviewed after one year.

The duty imposed on paracetamol imported from the U.S. is 18.23 percent, while the duty imposed on the analgesic imported from China varies according to the producers.

Paracetamol made by Hengshui Jiheng Pharmacy Co. Ltd., Rhodia Wuxi Pharmaceutical Co. Ltd., Zhejian Kang Le Pharmaceutical Co. Ltd., Huzhou Konch Pharmaceutical Co. Ltd. and Changshu Huagang Pharmaceutical Co. Ltd. are exempt from the duty, while paracetamol produced by Unqiu Lu'an Pharmaceutical Co. Ltd. is subject to 3.76 percent tax.

Paracetamol from all other Chinese producers are subject to 18.62 percent duty.

Paracetamol is a popular analgesic and antipyretic used to help relieve fever, headaches and other minor aches and pains. Also known as acetaminophen, it is a major ingredient in numerous cold and flu medications, and many prescription painkillers.

Indonesia's pharmaceutical market is currently valued at some US$350 million. Imported products make up more than 50 percent of the market, with a large portion coming from the U.S., Germany, Switzerland and Japan.

Foreign companies importing finished products or raw materials into Indonesia are required to obtain an import license from the Ministry of Health.