India Recommends Anti-Dumping Duty of Up to USD 376/MT on Virgin Multi-Layer Paperboard Imports from Indonesia

India Recommends Anti-Dumping Duty of Up to USD 376/MT on Virgin Multi-Layer Paperboard Imports from Indonesia

- The scope includes Folding Box Board (FBB), Solid Bleached Sulfate Board (SBS), Cup Stock Paper or Board, and Liquid Packaging Board (LPB) in the range of 140 GSM to 450 GSM.
- the MIP merely establishes a floor price and remains below the cost of sales of domestic producers.
- Interested parties argued that imports from Indonesia accounted for only 4.24% market share during the investigation period and therefore could not be considered a significant cause of injury.

The Pulp and Paper Times

The Directorate General of Trade Remedies (DGTR), Government of India, has issued its final findings dated June 25, 2026, in the anti-dumping investigation concerning imports of Virgin Multi-Layer Paperboard originating in or exported from Indonesia. Concluding that dumped imports from Indonesia have caused material injury to the domestic industry, the Authority has recommended the imposition of anti-dumping duty ranging from USD 261 per metric tonne (MT) to USD 376 per MT for a period of five years.

The investigation was initiated following an application filed by the Indian Paper Manufacturer Association (IPMA) on behalf of the domestic industry. The participating domestic producers included Aditya Birla Real Estate Limited (formerly Century Textiles and Industries Limited), Emami Paper Mills Limited, JK Paper Limited, ITC Limited, and Tamil Nadu Newsprint and Papers Limited (TNPL). The period of investigation covered April 1, 2024, to March 31, 2025, while the injury assessment examined data from 2021-22 through the investigation period.

According to the final findings, the product under consideration is Virgin Multi-Layer Paperboard made solely from white or virgin wood pulp, whether coated or uncoated. The scope includes Folding Box Board (FBB), Solid Bleached Sulfate Board (SBS), Cup Stock Paper or Board, and Liquid Packaging Board (LPB) in the range of 140 GSM to 450 GSM. The Authority excluded paperboards manufactured using recycled or brown pulp, coated or uncoated cigarette boards, two-side coated artboard imported for printing purposes, and four or more layered paperboards used in liquid packaging applications.

A key issue during the investigation was whether SBS and LPB should be excluded from the scope. Interested parties argued that these grades were not imported from Indonesia during the investigation period and differed from other product categories. However, the Authority rejected the request, noting that the domestic industry manufactures and supplies SBS and LPB and that the same machinery and production processes can be used to manufacture these grades. The Authority observed that there was no justification for excluding these products merely because imports were not recorded during the period of investigation.

The Authority further noted that Virgin Multi-Layer Paperboard is primarily imported under Customs Tariff headings 4805 and 4810, although imports have also been reported under multiple other tariff classifications.

Several interested parties contended that the existing Minimum Import Price (MIP) mechanism already addressed any injury caused by imports and that anti-dumping duty would result in overlapping protection. They argued that the MIP effectively neutralized price undercutting and therefore fulfilled the objective of trade remedial measures.

The domestic industry, however, maintained that the MIP is only a temporary measure and does not eliminate dumping. According to the industry, the MIP merely establishes a floor price and remains below the cost of sales of domestic producers. The industry also argued that injury margins remained significant even when the MIP was considered as the import price.

The Authority agreed with the domestic industry's position, observing that the MIP remains temporary in nature and is valid only up to September 30, 2026. It concluded that the existence of the MIP neither eliminates dumping nor removes the need for anti-dumping duties. The Authority further found that imports at MIP levels could still cause injury to the domestic industry.

Regarding injury and causal link, interested parties argued that imports from Indonesia accounted for only 4.24% market share during the investigation period and therefore could not be considered a significant cause of injury. They also pointed to imports from China and Chile as a major source of competitive pressure on domestic producers.

The domestic industry countered that imports from Indonesia had increased sharply during the investigation period due to low-priced offerings by Indonesian exporters. It stated that while imports from China and Chile exerted pressure in earlier years, Indonesian imports became a significant factor during the investigation period, forcing domestic producers to lower prices below their cost of sales.

The Authority found that import volumes from Indonesia increased dramatically from just 108 MT in 2021-22 to 61,567 MT during the period of investigation. After examining all known factors, including demand trends, productivity, technology changes, consumption patterns, and imports from other countries, the Authority concluded that dumped imports from Indonesia had caused material injury to the domestic industry. It noted that imports from Finland and Sweden were priced higher, Chilean imports were de minimis, and Indonesian landed prices were lower than Chinese imports by Rs. 4,147 per MT.

Based on its examination of dumping, injury, and causal link, the Authority recommended the following anti-dumping duties on imports of Virgin Multi-Layer Paperboard:

Producer                                                                                                 Recommended Duty
PT Riau Andalan Paperboard International                                                  USD 261/MT
PT Indah Kiat Pulp & Paper Tbk                                                                         Nil
Any other Indonesian producer/exporter                                                      USD 376/MT
Exports from countries other than Indonesia but originating in Indonesia    USD 376/MT

The Authority concluded that the domestic industry has suffered material injury due to dumped imports from Indonesia and that anti-dumping duties are necessary to offset the impact of such imports. Accordingly, it has recommended the imposition of anti-dumping duty on imports of Virgin Multi-Layer Paperboard originating in or exported from Indonesia for a period of five years from the date of notification by the Central Government.
 

Published at : Jun 26, 2026 05:10 AM (IST)

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