KADI starts probe into alleged dumping of polyester

KADI starts probe into alleged dumping of polyester

The Jakarta Post, Jakarta

The Indonesian Anti-Dumping Committee (KADI) said on Friday
that it was currently conducting an investigation into imported
polyester staple fiber products from South Korea, Taiwan and
Thailand, which are allegedly being dumped here.

Polyester staple fiber is a raw material used in the textile
industry.

"We started the investigation today (Friday) to prove whether
or not these imported products have seriously hurt local
manufacturers," KADI chairwoman Halida Miljani said.

If the dumping allegation proves to be true, KADI would ask
the government to impose an antidumping duty on these products,
she said.

Halida said that the investigative measures were taken due to
complaints from the Indonesian Synthetic Fiber Makers
Association, which claimed it was affected by the cheaper
imported products.

Earlier, the association urged KADI to recommend imposing a
temporary antidumping duty on the products from the three
countries to protect local manufacturers from suffering more
losses.

Indonesia is one of the world's 10 largest producers of
synthetic fiber with a total capacity of 500,000 tons of
polyester staple fiber, 825,000 tons of polyester filament yarn
and 30,000 tons of nylon filament yarn.

Since a tariff barrier can no longer be used to protect
domestic industries as it goes against the World Trade
Organization (WTO) ruling, many countries are using an
antidumping instrument as a legal remedy to offset losses.

Since 1996, the committee has handled some 23 dumping cases
against several imported products in an effort to protect local
producers.

Data from KADI shows that nine alleged dumping cases had been
closed as the committee could not find strong evidence to support
allegations.