Indonesian products continue to face obstacles from authorities of other countries including India. Led by Prime Minister NarendraModi, the country plans to impose an anti-dumping import duty (BMAD) for polyester spun yarn (PSY) products
The cancellation of PSY product BMAD is based on the decision of the Indian Ministry of Finance through the Tax Revenue Unit (TRU). The decision is contained in Office Memorandum No. 190354/182/2021 - TRU issued by Government of India on 8 January 2022.
With this decision, the final recommendation from India's Directorate General Trade Remedies (DGTR) published on August 19, 2021, is declared null and void and Indonesian exporters are not subject to BMAD of US$61 per metric ton to US$191 per metric ton.
This is the third time since 2021 the Indian government has canceled implementing the BMAD. The success momentum is certainly expected to continue for other cases, says IndrasariWisnuWardhana, Director General, Foreign Trade.
Previously, flat rolled products of stainless steel (FRPSS) and plain medium density fiberboard (MDF Board) products were also almost hit by the BMAD, but the Indian government was unable to prove the alleged violation of the Indonesian products, including PSY.
This case began on May 21, 2020 when the Indian DGTR authority initiated an anti-dumping investigation for PSY with the HS code 5509.21.00 originating from China, Indonesia, Nepal and Vietnam. PSY is a raw material for making cloth which is used for clothing, curtains, car seats, and other products.
PSY products already have a sizable market in India. Based on data from the Central Statistics Agency (BPS), Indonesia's PSY export performance to India reached the highest value in 2019 at $51 million. Although it had dropped to US $ 23 million the following year. Meanwhile, in the January-June 2021 period, the export value was recorded at $26.1 million, or an increase of 321.23% from the same period in the previous year, which was $6.19 million.