Domestic Industry Seeks Action Against Subsidized Imports

India Launches Investigation into Subsidized Chinese, Indonesian Paperboard Imports​

New Delhi, March 26 – India has initiated an investigation into the import of subsidized paperboards from China and Indonesia, according to a notification from the Directorate General of Trade Remedies (DGTR). The investigation is aimed at addressing concerns about the impact of subsidized exports on domestic paper manufacturers.

The DGTR, the commerce ministry’s investigation arm, began the process following a complaint filed by the Indian Paper Manufacturers’ Association on behalf of the domestic industry. The applicant alleges that multi-layer paperboard exports from China and Indonesia, supported by government subsidies, are negatively affecting the profit margins of Indian companies.

The complaint asserts that producers and exporters in China and Indonesia have benefited from various forms of government support, including grants, loans, guarantees, taxes, export credits, and equity infusions.

“Based on the duly substantiated written application filed by or on behalf of the domestic industry, and having satisfied itself, on the basis of prima facie evidence submitted by the domestic industry, substantiating the existence of countervailable subsidies on production and export… the authority hereby initiates an investigation,” the DGTR stated in its notification.

The investigation will determine the extent and impact of alleged subsidization. If found to be occurring, the DGTR will recommend an anti-subsidy duty amount sufficient to mitigate any harm to the Indian industry. Multi-layer paperboard is primarily used in the packaging sectors for pharmaceuticals, FMCG products, food & beverages, electronics, and high-end cosmetics, as well as in printing brochures, book covers, and publishing.

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Related Developments​

In separate actions, the DGTR has initiated a sunset review of existing anti-dumping duties on seamless tubes, pipes, and hollow profiles of iron, alloy, or non-alloy steel; and certain flat-rolled aluminum products exported from China. Hindalco Industries has requested a review of anti-dumping duties on specific aluminum items from Chinese companies.

Jindal Saw Ltd, Kirloskar Ferrous Industries, and Maharashtra Seamless Ltd have also filed applications for a sunset review of anti-dumping duties on steel goods, alleging continued dumping and injury to the domestic steel industry despite existing duties. The applicants are seeking a modification and increase in the duty amount to address ongoing harm.