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DG Safeguards rejects safeguard duty on coated paper imports

November 30, 2009 | By the IPP Newsdesk

On 13 November 2009, the Director General of Safeguards turned down the request of domestic paper manfucaturers for a safeguard customs duty on the import of coated paper and paperboard. “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,” according to the conclusions and recommendations of the Director-General (Safeguards).

Coated paper machine in China

ITC paperboards and speciality papers division, Ballarpur Industries and JK Paper had filed the petition for safeguards duty on coated paper and paperboard imports. The Safeguards Authority noted that the term “serious injury” means significant overall impairment in the position of the domestic industry. It has highlighted that the Indian paper mills area profit-making domestically owned industry with maximum production, maximum sales, maximum capacity utilisation in recent years and have been undertaking capacity expansion during the entire period o fconsideration and 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) said. The share of imports has gone up by 6 per cent during April-December 2008-09, compared to 2007-08. The share of imports relative to production has gone up from 30 per cent in 2006-07 to 33 per cent in 2007-08 and 39 per cent in 2008-09 (up to December 2009).“Therefore, it is noted that there is increase in import in quantitative terms as wellas in relative term. However, the imports are at higher prices than previous years,” according to the Director-General (safeguards).