Shoe makers get antidumping duty
JAKARTA (JP): The European Commission has imposed a provisional antidumping duty of between 5.5 percent and 36.5 percent on Indonesian producers of shoes with textile uppers.
An official at the European Union representative in Jakarta, told The Jakarta Post yesterday the commission had made a temporary decision to clamp antidumping duties on Indonesian and Chinese producers of shoes with textile uppers because they had dumped their products on the European market between 1991 and 1994.
According to the diplomat, Indonesian shoemakers had sold their products on the European market at a 25 percent price cut, and Chinese companies at a 47 percent price cut, causing injury to nine European companies.
The Indonesian companies on which the antidumping duties were imposed were PT Dragon (5.5 percent) PT Bosaeng Jaya (15.4 percent) and PT Volmacarol (15.4 percent).
The team of investigators sent from Europe to Indonesia in 1995 had initially charged two other companies of the same category, PT Emperor Footwear Indonesia and PT Sindoll Pratama, of dumping their products.
The commission, however, said the charges against both companies could not be proved and so no antidumping duties were imposed on them.
Other Indonesian shoe companies of the same category which refused entry to the European team of investigators were given antidumping duties of 36.5 percent.
Meanwhile, the commission imposed antidumping duties of 94.1 percent on shoes with leather uppers made by Chinese companies.
The provisional antidumping duties would be effective for nine months before the commission makes a final decision on the case.
According to the official who requested anonymity, the commission had notified all the concerned companies about its decision and had given them one month to respond. The commission would evaluate their responses before making a final decision.
The team of investigators also accused another nine Indonesian footwear companies of different categories of dumping their products on the European market.
The commission has yet to make a decision on their cases, said the source. (jsk)