Indonesia issues Conclusion of safeguard investigation on imported cotton fabric

Accordingly, it affirmed that the imported goods caused or threatened to cause serious damage to the domestic production industry of Indonesia and proposed to apply safeguard measures on cotton fabrics. In addition, Indonesia allowed relevant parties to register for consultation with the investigating agency on the proposal to apply the above safeguard measures according to the provisions of the WTO Agreement on Safeguards.

Details of the investigation conclusions and proposed safeguard measures are as follows:

Products under investigation: Cotton Fabric including HS codes: 5208.21.00, 5208.22.00, 5208.31.90, 5208.33.00, 5208.51.10, 5208.52.10, 5209.11.90, 5209.21.00, 5209.31.00, 5209.49.00, 5209.51.10, 5209.59.10, 5210.21.00, 5210.32.00, 5210.51.10, 5210.59.10, 5210.59.90, 5211.31.00, 5211.59.10, 5211.59.90, 5212.15.10, 5212.15.90, 5212.21.00, 5212.23.00, and 5212.25.10.

Plaintiff: Indonesian Textile Association.

Investigation initiation date: October 27, 2023

Investigation period: The initial investigation period was 2020-2022 and was later updated to 2021-2024 during the investigation.

Illustration photo

Investigation conclusion: The investigating authority believes that the import volume has increased both in absolute and relative terms compared to total domestic production during the investigation period. This increase in imports stems from many unforeseen factors such as the US-China trade war, the increase in cotton production in India and the expansion of textile production capacity in Vietnam... The increase in imports is the only cause that has caused or threatened to cause serious injury.

important for domestic manufacturing industry, reflected in the decrease in market share of domestic goods, decrease in production, decrease in domestic sales, decrease in productivity, capacity and causing losses, unemployment...

Proposed safeguard measures: Based on the above conclusions, the investigation agency proposes to apply safeguard measures in the form of absolute tax, calculated in units of Rp/meter of fabric, applicable for three periods.

Period I: from 8,785 Rp/meter to 21,144 Rp/meter

Period II: from 8,263 Rp/meter to 19,898 Rp/meter

Period III: from 1,781 Rp/meter to 18,726 Rp/meter

For details on proposed safeguard tax rates, please see attached document.

According to WTO regulations, developing countries with an import market share of less than 3% and their total import market share does not exceed 9% of total imports of the product proposed to be taxed are exempted from the measure. However, according to data released by Indonesia, Vietnam is not exempted from the measure due to its large import volume (accounting for 5.04%) - second only to China (82.40%). The safeguard measure is expected to take effect after the announcement of the decision by the Indonesian Finance Minister, as announced on the Indonesian Gazette.

Importers, exporters and interested parties may request consultations in writing within 7 days of the date of issuance of the notice. All written requests must be submitted in writing and electronically and must indicate the name, address, email address and telephone and fax numbers of the party requesting consultations.

Information related to the case can be found here.

The PVTM Department recommends that relevant businesses study the Investigation Conclusion of Indonesia and request consultation if necessary.

For more information, please contact: Foreign Trade Remedies Handling Department, Trade Remedies Authority, Ministry of Industry and Trade , 54 Hai Ba Trung, Cua Nam, Hanoi. Officer in charge: Nguyen Thuy. Email: thuyngth@moit.gov.vn; nganha@moit.gov.vn .

Source: Department of Trade Defense

Tags: Indonesian market, cotton fabric

Source: https://moit.gov.vn/tin-tuc/thong-bao/indonesia-ban-hanh-ket-luan-dieu-tra-tu-ve-doi-voi-vai-cotton-nhap-khau.html