Govt to initiate anti-dumping investigation on virgin paperboard

The Indian Paper Manufacturer Association filed an application on behalf of the domestic industry before the designated authority, in accordance with the Customs Tariff Act 1975, and Custom Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 for the initiation of an anti-dumping investigation concerning imports of virgin multi-layer paperboard originating in or exported from Chile and China PR.

The applicant alleged that material injury is being caused to the domestic industry due to dumped imports and has requested for imposition of an anti-dumping duty on the imports of the product.

The product under consideration is a multilayer board made of white/virgin wood pulp, whether coated or uncoated. It is predominantly used as a material in the packaging industry due to its strength and purity. It is used for packing food, cosmetics and pharma products.

In its application, the Indian Paper Manufacturer Association stated that the boards from Chile and China PR are identical to the boards produced by the domestic industry. The boards produced by the domestic industry have comparable characteristics to the boards imported from these countries in terms of technical specifications, physical and chemical characteristics, manufacturing process and technology, functions and uses. The two are technically and commercially substitutable. 

The Indian Paper Manufacturer Association filed the application on behalf of the domestic industry. The local paper manufacturers who provided information for the present investigation include Century Textiles and Industries; Emami Papers Mills; ITC; JK Paper; and Tamil Nadu Newsprint and Papers.

Also, West Coast Paper Mills filed a letter supporting the application filed by the applicant.

The applicant has proposed 1 April 2023 to 31 March 2024 as the period of investigation. The injury investigation period shall cover the period 2020-21, 2021-22, 2022-23 and the period of investigation. 

It may be noted that there is an unprecedented rise in imports from countries, which are part of the ASEAN. Paper imports from Indonesia more than doubled (108.3%) during the April-October period of the ongoing financial year. Imports from Thailand grew by 73.4% during the same period. The biggest rise is seen from Singapore, as paper imports surged by over 500%.

The rapid rise in paper imports (almost 142% from ASEAN countries), is because they enjoy zero import duty on paper on account of the free-trade agreement.

India signed free-trade agreements (FTAs) with the Association of Southeast Asian Nations (ASEAN) and South Korea. And so, under the FTA, such countries are allowed to export paper to India at zero import duty.

India provides import tariff concessions to China and other countries under the Asia Pacific Trade Agreement (APTA). It offers a 30% margin of preference. This reduces the import duty on most grades of paper to 7% from 10%.

The domestic industry has been urging the government of India to take steps to reduce imports.