RI may duel OZ at WTO as tissue makers split hairs

The Indonesian government may challenge a World Trade Organization (WTO) decision allowing the Australian government to impose anti dumping duties on imported tissue paper products

Trade Ministry director general for international trade cooperation, Gusmardi Bustami, said recently the government would first analyze all the necessary legal aspects before making such a decision.

"We have to learn the case thoroughly... to support our arguments so we can file a complaint with the WTO," he told The Jakarta Post.

Anti-dumping duties are measures to counter dumping by imposing additional import tariffs, while dumping happens when a manufacturer exports his products to another country at prices below those charged in his home market or even below his production costs.

The Australian Customs Service has imposed additional anti dumping duties of 8 percent and 40 percent above the existing five percent tariff on tissue paper products after it found in December that China was dumping those products on the Australian market, www.proprint.com.au reported on Jan. 14.

Following this, Australian paper distributor Paper Force, along with suppliers PT Pindo Deli and Gold Hong Ye, may appeal against the Custom's findings on the grounds of WTO anti dumping rules.

Pindo Deli and Gold Hong Ye - two pulp mills which are managed by Asia Pulp & Paper (APP) in Indonesia and China respectively - are among tissue paper suppliers that are accused by Customs of practicing dumping, in addition to PT Lontar Papyrus and PT Univenus.

Pindo Deli, Lontar Papyrus and Univenus are subsidiaries of Indonesia's vastly diversified business empire Sinar Mas Group.

Sinar Mas Group executive director Gandhi Sulistianto confirmed their appeal plan to the Post.

Products in question are primarily for the Select brand of tissue products, for which the Australian paper distributor won the tender in August 2006, with the supply contract expiring in August 2008.

Paper Force spokesman Steve Nicholson said the Australian Customs carried out a flawed process when they decided upon the additional anti dumping duties.