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)