India's Safeguard Authorities Say "No" to Duty on Imported Paper

Dec. 1, 2009 - India's Safeguards Authority has said “no” to domestic paper manufacturers' plea to impose a "safeguards" duty on imports of coated paper and paperboard, according to a news report from The Hindu Business Line.

“No safeguard duty has been recommended as there is no serious injury or threat of serious injury to the domestic industry on account of increased imports,” India's Director-General (Safeguards) said in his final findings.

The news report said that domestic producers ITC Limited (paperboards and specialty papers division), along with Ballarpur Industries and JK Paper Ltd., had filed the petition seeking safeguards duty on coated paper and paperboard imports. Indian Paper Manufacturers' Association had also supported the application.

According to the news report, India's Safeguards Authority noted that the term “serious injury” means significant overall impairment in the position of the domestic industry. The Authority highlighted that a profit-making domestic industry that has the maximum production, maximum sales, maximum capacity utilization and has been undertaking capacity expansion during the entire period of consideration cannot be said to be in the position of significant impairment.

“There is no evidence that the increased imports at higher prices are threatening to cause serious injury to the domestic industry,” the Director-General (Safeguards) is quoted as saying.

The Hindu Business Line said that the portion of imports to India, relative to production, has gone up from 30 percent in 2006-07 to 33 percent in 2007-08, and 39 percent in 2008-09 (up until December 2009).

SOURCE: The Hindu Business Line

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