‘Golden Days’ for Coated Paper & Paper board are just around the corner

"Golden Days’ for Coated Paper & Paper Board are just around the corner

Delhi | 17 Jan 2020 | The Pulp and Paper Times:

The Indian Paper industry producing coated paper and paper boards can see ‘golden days’ in the coming period. It is believed that the Government is all set to fine-tune the import duty structure as well to have a quick review of all ‘Free Trade Agreement’ (FTA). The import of coated paper and paper board under HSN code 4810 to India is pushing Indian paper mills out of competition in front of global paper manufactures.

Buy Paper Trade Directory 2019 (Latest Data of 500+ Indian Paper Mills) Avail Discount

The long-pending demand of the India industry for the complete ban on import of coated paper and paper boards, the Government of India has proposed to increase the import duty to 20% from 10% in the coming union budget. This increment in duty will relax the paper manufactures up to what extent, the time will tell.

Indian Government also is measuring a few more steps to address the import surge issue. According to a letter issued by Department of Promotion of Industry and Internal Trade (DPIIT) to the Ministry of Commerce on 6 Jan 2020, recommends a complete ban of import of stock lot under HSN code 4810 (coated paper and paper boards).

DIIPT further recommends in the letter that the Paper import monitoring system (PIMS) in line with the steel import monitoring system (SIMS) to be implemented for closer monitoring of imports under HSN code 4810.

The letter also says ‘Review of a provision of all FTAs where items under ITC HSN code 4810 was offered for negotiation, particularly ASEAN and Korea. For all future as well as under negotiation FTAs, the items under HSN code 4810 to be kept in the exclusion / negative list’.

"Nil rate of customs duty on import of paper and paperboards from ASEAN countries leads not only to revenue loss to Indian government but it also leads to exporting of domestic jobs to other countries and significantly impacts economic viability of many paper mills across India," a paper mill owner said.

High cost of raw material coupled with a significant increase in fuel cost and other inputs has resulted in an increase in the cost of domestic manufacture of paper and paperboard. This has made the Indian market amenable to cheaper imports from countries where the cost of raw material and other inputs is much cheaper, leading to underutilization of existing domestic production capacity.

The paper industry has expressed concerns about cheap imports and a surge in inbound shipments."This has a significant negative impact on the coated paper manufacturing industry. An increase in duty will help the domestic industry to compete with global players. It would also protect local manufacturers and ensure sustained growth of the domestic paper industry," one of the sources said.

IPMA said taking advantage of low import duty rates countries like China and Indonesia diverting their inventory, rendered excess by a levy of anti-dumping and anti-subsidy tariffs by their traditional markets of USA and EU, to India.

The ministry has proposed to the removal of import duty on waste paper and wood pulp, which is currently at 10 percent and 5 percent, respectively. The paper industry has expressed concerns about cheap imports and a surge in inbound shipments.

Web Title: Golden Days for Coated Paper Paper board are just around the corner