Indonesian paper producers can now deliver their products to Pakistan without worrying about dumping allegations after the Pakistani National Tariff Commission (NTC) halted its investigation into Indonesian-made paper products.
Indonesian Trade Ministry trade security director Ernawati said that the Pakistan commission officially halted the dumping investigation into paper categorized as “certain paper”, which covers among others, coated and uncoated paper and paperboard, from Indonesia as well as from China, Japan and Thailand on Sept. 29 following the withdrawal of the request by Pakistan paper producer Packages Limited.
“The firm withdrew its request for investigation after the Lahore High Court decided that the commission’s ruling was not legitimate,” she said in a written statement on Friday.
Under the World Trade Organization (WTO)’s rules, a country can impose anti-dumping duties on imported products once investigations by the importing country’s authorities prove the validity of dumping allegations lodged by local producers.
The NTC began an investigation into the case on Dec. 4 last year in response to a complaint filed by the local firm.
Later, the Indonesian Trade Ministry, as well as Sinar Mas, which was charged with dumping allegations, submitted denials in written statements to the Pakistani authorities.
A Pakistani importer of Sinar Mas’ products filed a suit against the NTC at the Lahore High Court in March this year saying that the investigation made on behalf of the commission was not legitimate because it did not fulfill the quorum, which should have comprised one chief and two members.
“The initial investigation, preliminary determination, as well as the final determination, were made on behalf of the commission, which consisted only one chief and one member. The Lahore High Court finally ruled that the charge put by the commission was not legitimate,” Ernawati said.
According to data at the international trade center Trademap, Indonesian exports of paper and paperboard to Pakistan in 2009 were valued at US$18.6 million and rose by 5.9 percent to $19.7 million in 2010, while exports of uncoated paper and paperboard to Pakistan in 2009 were $29.4 million and increased by 2 percent to $30 million in 2010.
Indonesia is the largest exporter of “certain paper” products to Pakistan, followed by Thailand, China and Sweden.
Indonesia is currently the ninth largest pulp and paper producer in the world with a total production of 7.9 million tons per year. Indonesia can produce pulp at the lowest production cost of around $200 per ton, according to the Indonesian Pulp and Paper Association (APKI).
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