Imposing antidumping duty will raise production costs: API

02 Jul '14

2 min read

The imposition of anti-dumping duty on several types of yarns would result in an increase in production costs, Indonesian Textile Association (API) chairman Ade Sudrajat Usman has said.

In response to few petitions alleging dumping practices, the Indonesian Anti-Dumping Committee (KADI) has proposed imposition of anti-dumping duties ranging from 4.5 to 16 percent on various kinds of yarn.

Addressing a press conference in his office, Mr. Sudrajat said levying of such a duty on yarn, which are largely imported, would raise production costs, and it would harm the domestic textile industry in Indonesia.

In the first half of this year, Indonesia is estimated to have imported about 4,000 tons of yarn, including spin drawn yarn (SDY), partially oriented yarn (POY) and drawn textured yarn (DTY).

Mr. Sudrajat explained that KADI’s investigation was based on HS Code, which is too broad, and there are many kinds of yarn, for e.g. fine-denier yarn with certain specifications, that are imported by the spinning industry to manufacture high quality fabrics.

He added that the availability of high quality yarn is very important for the spinning industry to continue its business, as it cannot be met by the domestic yarn industry.

Mentioning about the hike in electricity tariff, which has come into effect from July 1, Mr. Sudrajat said it would also add to production costs of textile and garment companies, and some firms may shut down their factories after the Eid. It might also drive the country's textile and apparel imports by about 50 pecent after the Eid, he added.

He said, except for some products like sarongs which are not produced in other countries, Indonesian textile and apparel sector would face a very stiff competition from imported goods in the domestic market.

Fibre2fashion News Desk - India

More Indonesian Textile Association (API) News... More Textiles News - Indonesia...