FinMin imposes anti-dumping duty on decor paper for five years

FinMin imposes anti-dumping duty on décor paper for five years 

New Delhi | 28th December 2021 | The Pulp and Paper Times:

Working on the recommendation of Directorate General of Trade Remedies (DGTR), the Ministry of Finance (MOF) has imposed much-awaited anti-dumping duty on Decor Paper importing from China, for five years. The anti-dumping investigation was initiated by the authority based on a complaint filed by ITC Ltd—the company that accounts for close to 80% of the domestic production of decor paper, a key material used by the decorative industry.

The designated authority in its final findings vide notification number 6/38/2020-DGTR, dated the 28th September 2021, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 28th September 2021, has come to the conclusion that the- (i) dumping margin for the subject goods from the subject country is positive and significant; (ii) domestic industry has suffered material injury; (iii) material injury to the domestic industry has been caused by the dumped imports from the subject country.

MOF has imposed an anti-dumping duty at the rate equal to the amount as specified in the below table (in between $110 per MT to $ 542 per MT) on the imported decor paper majorly from China and other countries.

The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of notification in the Official Gazette, and shall be payable in Indian currency.

The Authority recognizes that the imposition of the anti-dumping duties might affect the price levels of the product in India. However, fair competition in the Indian market will not be reduced by the imposition of anti-dumping measures. On the contrary, the imposition of the anti-dumping measures would remove the unfair advantages gained by the dumping practices, prevent the decline in the performance of the domestic industry and help maintain the availability of a wider choice to the consumers of the subject goods.

With regard to the operations of the domestic industry, the Authority notes that the domestic industry has shown long-term commitment to production in India. Considering the significant demand in the country, the domestic industry invested a significant sum to increase capacities. That being the case, it needs to earn adequate profits, in order to recover its investment. However, at present, its profits are significantly low. The domestic industry has highlighted that had it financed its plant through loans, the profits earned at present would cover only l0% of the finance cost, even assuming an interest rate of 9%. Therefore, such a market situation would not be conducive to encouraging further investment in the country.

Some of the interested parties have contended that if the duties are not imposed on the pre-printed decor paper, the dumping of the same will start. The Authority notes that the present investigation pertains to the imports of the product under consideration 49 which excludes pre-printed decor paper. In case the dumping of the pre-printed decor paper starts, the domestic producers are free to approach the Authority for the imposition of the anti-dumping duty on the said product.

Of the 24,227 MT of decor paper India produces, 70% to 80% comes from ITC Ltd. Pudumjee Paper Products Ltd and Shree Krishna Paper Mills & Industries Ltd are the other domestic manufacturers of the product.

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