Landed value and USD 855 per tonne: Difference as ‘Anti Dumping Duty’ on Uncoated paper

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News about Indian government's announcement of levy of anti-dumping duty on imported uncoated paper.

Landed value and USD 855 per tonne: Difference as ‘Anti Dumping Duty’ on Uncoated paper

Delhi | 5 December 2018 | The Pulp and Paper Times

The gain in paper stocks at share market after imposing of anti dumping duty on uncoated copier paper segment can be seen as a relief to paper manufactures those are operating in uncoated paper segment. The announcement of imposing the duty came on 4th December after Directorate General of Trade Remedies (DGTR) has recommended the duty after establishing in its probe that the dumping of uncoated paper (A4, A3 & FS Legal Size under heading number 4802) from Indonesia, Thailand and Singapore are having an impact on domestic players. 

“We welcome the step of imposing anti dumping duty to protect the Indian companies’ interest, slipping away their profit due to the cheap dump. Whenever global pulp price reduce; traders start dumping paper to India. The bench mark price of USD 855 per tonnes is more or less equal to domestic copier paper price. Now dumping of uncoated paper below the bench mark price couldn’t suck the profitability of Indian companies as one has to pay the additional duty on landed value. Domestically, we are selling copier paper at a price of Rs. 64 per kg but cheaper imports at Indian soil are discouraging our products.” exclusively told by Mr. Ankur Bindal, Director of Bindals Paper Mills Ltd.   

The DGAD in its probe has concluded that the product has been exported to India from these countries below their normal values and consequently, the domestic industry has suffered material injury. The period of probe would be April 2016-June 2017 (15 months). Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.

Mr. Bindal further said “We hope that anti dumping duty will add more new capacities in copier paper production domestically. If paper industry has advance orders of two three months in hand then definitely, they will plan for capacity enhancement.”  

Indian paper companies operating across the uncoated paper segment are JK Paper, The West Coast Paper Mills, Tamil Nadu Newsprint Papers, and Ballarpur Industries had filed an application before Directorate General of Trade Remedies (DGTR) for the initiation of the investigation.

The anti dumping duty is for a period of three years to protect the interest of domestic companies against low-cost shipments. Landed value of imports shall be the assessable value as determined under the Customs Act, 1962 (52 of 1962) and includes all duties of customs except duties under sections 3, 3A, 8B, 9 and 9A of the said Act.

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