Turkey may review dumping charge on Indonesian PSF products

Turkey may review dumping charge on Indonesian PSF products

JAKARTA (JP): The Turkish government has promised to review
its dumping charges against Indonesian polyester staple fiber
(PSF) products, an industry source said here on Saturday.

Risa Bhinekawati, the secretary-general of the Association of
Indonesian Synthetic Fiber Producers (APSyFI), said that the
promise was made during a recent meeting between an Indonesian
delegation and the Turkish government.

The Indonesian representatives comprising of government
officials and the association's members had been assured that
Turkey would review its plan to impose antidumping duties of
between 6.2 percent and 37.4 percent on Indonesian synthetic
fiber products, important raw material for textiles, she said.

Risa said that the Turkish government, among others things,
had agreed to review the penalties imposed on seven Indonesian
synthetic fiber producers-- PT Sulindafin, PT Tifico, PT
Indonesian Toray Synthetic, PT Panasia Indosyntec, PT GT
Petrochem Industries, PT Kuma Fiber, and PT Tri Rempoa.

In March, the seven companies were penalized by a 37.4 percent
antidumping duty, the maximum duty allowed, because they had been
considered uncooperative.

"The Turkish government could accept Indonesia's argument that
according to the World Trade Organization's (WTO) antidumping
regulations, a company should be pronounced cooperative if it has
answered questionnaires from the accusing country within the
given time," she said in the statement.

The Indonesian delegation on Sept. 25 also met with senior
European Commission (EC) officials to question the antidumping
duties imposed on Indonesian PSF products, Risa said.

The commission imposed antidumping duties ranging between 8.4
percent and 15.8 percent in July 2000.

The duties imposed by the European Union (EU) and Turkey could
threaten Indonesia's PSF exports to the two regions, which amount
to a total of US$52 million a year, she said.

WTO

Indonesia will take its complaints against the EU to the
upcoming meeting of the WTO's Anti Dumping Committee/Council for
Trade in Goods at the end of October this year.

Risa said Indonesia would use its rights to challenge the
antidumping charges in the WTO forum as there were still some
matters which had not been resolved during the consultations.

The unresolved matters relate to sampling procedures, product
categories, and the special treatment which should be accorded to
developing countries, Risa added.

The commission had taken samples from Indonesian companies
which were considered uncooperative before imposing the
antidumping duties. As a consequence, other companies which were
considered cooperative are also being subjected to a 14 percent
antidumping duty when exporting their products to the European
market, she said.

The Indonesian delegation asked the commission during the
meeting to review the measure by taking samples from the five
Indonesian companies considered cooperative, or to treat the
companies on an individual basis. "This is important in order to
give fair treatment to Indonesian companies," she added.

There had also been a violation in respect of the product
categories charged with the antidumping duty, Risa said.

The initial EU duty was for PSF products used for spinning,
but this had been extended to include those used for fiberfill
and non-woven, based on the argument that the products were dealt
with under one harmonized system code under customs regulations.

"The reasons given by the EC cannot be accepted because
according to WTO regulations, the charged products should be
identical," Risa said.

The commission had also failed to consider the conditions
prevailing at the time when the charge was imposed (March 1998),
when Indonesia was under severe economic pressure.

"If Indonesian companies sold at a lower price then, it was
only temporary and just a way to survive (the crisis)," Risa said
in her statement. (10)