India, S. Korea, Taiwan and Saudi suspected of dumping

JAKARTA (JP): The Indonesian Synthetic Fiber Makers Association (APSyFI) said it had found indications of fiber dumping practices by several countries including India, South Korea, Taiwan, and Saudi Arabia, a senior executive said on Wednesday.

The association's secretary-general, Risa Bhinekawati, said that they are currently conducting investigations into the matter and that they would file a formal complaint with the Indonesian Anti-Dumping Committee (KADI) early next year.

"We want everything to be ready first with all the evidence found and prepared before filing a suit to KADI," she said, during the launching of APSyFI's website www.fiber-indonesia.com.

According to Risa, under the World Trade Organization's regulations, an exporting company is liable to undergo an investigation into dumping if it holds more than three percent of the import market share in the importing countries.

"So companies from these countries with an import market share of more than 5 percent are liable to investigation," Risa said.

She said the countries were suspected of dumping polyester staple fiber (PSF), polyester filament yarn (PFY), and nylon filament yarn (NFY). All the markets of these fibers are subject to intense global competition.

Last year, Indonesia imported 64,659 tons of PSF worth US$58 million, 2,316 tons of nylon filament yarn worth $6.9 million, and 13,700 tons of PFY worth $28.2 million, Risa said.

In the meantime, Indonesian producers have also been the target of anti-dumping laws in other countries.

The European Union (EU) has imposed an antidumping duty of 20.8 percent on Indonesian drawn textured yarn (DTY) since September 1996. And in July last year, it imposed between 8.4 percent and 15.8 percent antidumping duty on Indonesian PSF.

Antidumping duties have also been imposed by the Turkish and Indian government. Turkey imposed in March last year an antidumping duty of between 6.2 percent and 37.4 percent for PFY, while India levied in April this year an antidumping duty of between 32.7 cents and 44.2 cents a kilogram for partially oriented yarn (POY).

The duties imposed by Turkey is now qualified for review, Risa said, explaining that the consequence of a review was that the antidumping duty could be increased, retained, reduced or revoked.

However, there doesn't seem to be any move by the Indonesian companies charged with dumping practices to request a review since they could still allocate their export market to other countries, she said.

As to the charges imposed by the EU, Indonesia could still export to the region's re-exporting downstream companies, which were exempted from antidumping charges, Risa said.

Indonesian PSF exports totaled 44,760 tons worth $35 million in 2000 compared to 39,228 tons worth $25.9 million the previous year.

PFY exports totaled 302,540 tons worth $382 million last year, compared to 220,539 tons worth $254.9 million in 1999, while NFY exports reached 9,376 tons worth $14.3 million compared to 9,226 tons valued at $19.3 million the previous year.

Indonesia exports to Hong Kong, Thailand, India, Australia, Bangladesh, Vietnam, Japan, Turkey, the Philippines and the United States.

She said that the WTO's antidumping law has become a tool for many countries to restrict imports and the lack of a uniform antidumping investigation procedure had enabled some countries to manipulate it to their advantage.

"For example India knows that according to the WTO the accused party have 30 days to respond to their questionnaire, but their letter was only received a week before their designated deadline and they refused to postpone the deadline," Risa said, relating to India's dumping charges against Indonesian POY.

"We are tired of constantly being accused of dumping practices. This time it is our turn," she said. (tnt)