The United States has announced its final decision to cancel an anti-dumping import duty and countervailing duty on paper products from Indonesia.
The decision made on August 2 was a result of a “sunset review” of dumping charges against Certain Lined Paper School Supplies from Indonesia.
“The United States International Trade Commission decided that imports of CLPSS from Indonesia have caused no injuries to US industries,” Ernawati, the director of trade security at the trade ministry, said.
The USITC, however, maintained the sanctions against CLPSS products from China and India for allegedly causing potential material losses to US industries.
The “sunset review” of CLPSS products by the US Department of Commerce began on August 1, 2011, but investigations into dumping and subsidy charges already began on October 7, 2005.
The petition demanding the slapping of Anti-Dumping (AD) import duties and Countervailing Duties on CLPSS products originated from the Association of American School Paper Suppliers, with Sinar Mas Group (Pabrik Tjiwi Kimia) as the Indonesian target.
After conducting investigations for several months, the USDOC finally announced a Preliminary Determination on February 7, 2006, imposing a preliminary AD import duty of 97.85 percent to 118.63 percent on CLPSS products from three countries — Indonesia, China and India.
“At that time we immediately took steps such as creating coordination between various related agencies such as the forestry ministry, the Capital Investment Coordinating Board, PT Perusahaan Pengelola Aset and the other companies involved to answer a questionnaire from the USDOC,” Ernawati recalled.
The Indonesian government also submitted a note to the USDOC on February 24, 2006 denying the subsidy allegation with an explanation about Indonesian policy within the forestry, financial and investment sectors.
Ernawati said the import duty imposed by the US authorities was high because they unilaterally used data and information from the USDOC (Total Adverse Fact Available) and it was therefore difficult for Indonesian CLPSS products to enter and compete in the US market.
“However, we continued our efforts to convince the US authorities by producing a number of proofs that the dumping and subsidy charges were false.” she said.
Finally the US government was convinced that imports of CLPSS products from Indonesia caused no injuries to US industries, she added.
According to data gathered by USITC, Indonesia’s exports of CPLSS products to the US were valued at $91.3 million in 2003, down to $79.9 million in 2004 before rising again to $98.5 million in 2005.
In 2006 there were no exports, but in 2010 and 2011 Indonesia began exporting CLPSS products to the US again. The exports, though, were not very valuable: they were worth $16,000 in 2010 and $58,000 in 2011.
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