DGAD begins probe on imports of coated paper

Allegations of dumping concerning imports of coated paper from China, the European Union, and the US are being looked into by the Directorate General of Anti-Dumping & Allied Duties (DGAD). Of the paper and paperboard imports, which crossed 1.049 million tonnes, around 60 per cent is coated paper. The DGAD's investigation comes on a petition filed by the Indian Paper Manufacturers Association. 

“The Authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry ...,” according to the DGAD notification.

The product under consideration is used primarily for printing magazines, catalogues, books and manuals, calendars, brochures, labels, flexible packaging, etc. The weight of coated paper is 40-350 gm per square metre.

Welcoming the development, Rohit Pandit, secretary general, Indian Paper Manufacturers Association, urged the government to expeditiously impose anti-dumping/safeguard duties on imports of paper and paperboard.

The pulp and paper industry had made substantial investments in the past five years, he said, and it was becoming very difficult to meet its financial obligations in view of significant drops in margins. Two-three large paper mills have closed down, and, if no urgent steps are taken, more may follow.

Meanwhile, the DGAD has said there is no investigation into imports from Indonesia and Korea. Last year the DGAD had initiated investigation into imports of uncoated copier paper from Indonesia, Thailand, and Singapore. The Authority found no evidence of dumping of goods from Indonesia and Korea, the notification added. 

Imports of paper and paperboard into India have been increasing steadily year after year. In the last six years, imports have risen at a compound annual growth rate of 15.8 per cent in value terms (from Rs 34.11 billion in 2010-11 to Rs 82.37 billion in 2016-17), and 17.6 per cent in volume terms (from 540,000 tonnes in 2010-11 to 1.42 million tonnes in 2016-17).

Import of paper from Asean, with the nil rate of import duty under free trade agreement, has more than doubled during the period.