India Considers Anti-Subsidy Probe into Multi-Layer Paperboard Imports from China, Indonesia

India Considers Anti-Subsidy Probe into Multi-Layer Paperboard Imports from China, Indonesia

India Considers Anti-Subsidy Probe into Multi-Layer Paperboard Imports from China, Indonesia

- The product under consideration in the present investigation is "Multi-Layer Paperboard made of at least 51% white / virgin wood pulp, whether coated or uncoated"

The Pulp and Paper Times

India’s commerce ministry has launched an anti-subsidy investigation into imports of multi-layer paperboard from China and Indonesia, signalling a closer scrutiny of trade practices in the sector. The move follows concerns from domestic manufacturers over alleged subsidised imports impacting local industry competitiveness.

According to the notification issued by Ministry of Commerce & Industry Department of Commerce Director General of Trade Remedies on 20th March 2026, Indian Paper Manufacturers Association has alleged that the producers/exporters of the multi-layer paperboard from China and Indonesia have benefited from the actionable subsidies provided at various levels by the Governments of the subject countries, including the Governments of different provinces and municipalities in which producers/exporters are located, and other 'Public Bodies'.

The product under consideration in the present investigation is "Multi-Layer Paperboard made of at least 51% white / virgin wood pulp, whether coated or uncoated". The product under consideration includes Folding Box Board (FBB), Solid Bleached Sulphate Board (SBS), Cup Stock Paper or Board and Liquid Packaging Board, all in the range of 140 to 450 GSM. For the purpose of the present investigation, the scope of the product under consideration excludes the following:

i. Paperboards made out of more than 49% recycled/brown pulp or fibre per-se. 
ii.Coated/uncoated cigarette boards 
iii.Two side coated artboard when imported for printing purposes. 
iv.Four and more layered paperboard, either coated, uncoated or laminated with plastic material, aluminium, or other metal for liquid packaging material.

Multi-layer paperboard is majorly used in the packaging sector for pharmaceuticals, FMCG products, food & beverages, electronics and high end cosmetics. The subject goods are also used for printing of brochures, as book covers and in publishing industry. Multi-layer Paperboard (cup stock) is also used to manufacture disposable cups.

India has emerged as a significant market for paper and paperboard imports in recent years, driven by rising demand from the packaging, e-commerce, and consumer goods sectors. Data from UN COMTRADE shows that India imported paper and paperboard products worth approximately USD 857 million from China in 2024, underscoring the scale of trade exposure.

The subject goods are classified under Chapter 48, Schedule I to the Customs Tariff Act, 1975 under the headings 4805 and 4810. The product under consideration is classified under HS codes 4805 91 00, 4805 92 00, 4805 93 00, 4810 92 00, 4810 99 00. However, it is also imported under multiple HS codes including 4802 2090, 4802 5790, 4804 1900, 4804 3900, 4804 4200, 4804 5200, 4804 5900, 4805 1900, 4810 1320, 4810 1330, 4810 1390, 4810 1430, 4810 1490, 4810 1910, 4810 1920, 4810 1990, 4810 2200, 4810 2900, 4810 3100, 4810 3200. 4810 3990, 4811 5110, 4811 5190, 4811 5910, 4811 5990, 4811 9099, 4819 1010, 4819 1090 and 4819 2090. The Customs classification is only indicative and not binding on the scope of the product under consideration.

BASIS OF ALLEGED SUBSIDISATION

The applicant has alleged that the Government of China PR and the Government of Indonesia maintains various countervailable subsidy programs. The domestic industry has submitted that there is sufficient evidence showing that the exporters of the subject goods have received subsidies in the form of grants, loans, guarantees, taxes, export credits, goods and services, or equity infusions, which provide countervailable benefit. The information provided by the applicant shows sufficient prima facie evidence that the below mentioned programs constitute actionable subsidies as per the Agreement on Subsidies and Countervailing Measures and the Anti-Subsidy Rules, 1995.

The domestic industry has claimed that the volume of subject imports has increased in absolute terms and in relation to production and consumption in India at prices below the selling price and cost of sales of the domestic industry. The rate of increase in volume of imports has significantly exceeded the rate of increase in demand in the country. The domestic industry has further claimed that, due to imports of subsidised product under consideration into India, the market share of the Indian industry has declined while that of the subject imports has increased. The profitability of the domestic industry has declined and it has suffered losses, cash losses and has recorded a negative return on capital employed.
 

Published at : 2026-03-26T10:11:31+00:00">Mar 26, 2026 10:11 AM (IST)