Indonesia reviews sections safeguard duties

Posted on 09 February 2021

The Indonesian Trade Protection Commission (KPPI) says it will initiate a sunset review into safeguard duties on alloy steel H and I sections imports.

The products involved are included under Indonesian tax codes 7228.70.10 and 7228.70.90, Kallanish notes. The review application was made by local Indonesian steel producer PT Gunung Raja Paksi on 17 January.

"From the preliminary evidence of the application submitted by PT Gunung Raja Paksi, KPPI found that the import volume of the above products has increased,” says KPPI chairman Chairman Mardjoko. “In addition, there are early signs that there is a serious loss or the risk of serious loss.”

KPPI also says the surge in imports has led to a downturn in domestic industries. According to Mardjoko, this serious loss or risk of serious loss can be seen in several indicators of domestic industry performance in 2017-2020. These indicators include decline in domestic production and sales, decline in profits, decline in capacity utilisation, decline in employment, and decline in domestic industry's share of the domestic market.

Kallanish data shows that Indonesia imported 59,053 tonnes, 87,049t, 37,951t and 15,436t respectively of the products in question in 2017, 2018, 2019 and 2020. The only increase was in 2018, and then the imports declined yearly.

In 2015, Indonesian authorities decided to impose definitive safeguard duties on these imports, at a rate of 26% during the first year, 22% during the second year and 18% during the third year.

In January 2018, authorities extended the definitive safeguard duty on imports of I and H sections of other alloy steel. The rate of duty between 21 January 2018 and 20 January 2019 was 17.75%, and between 21 January 2019 and 20 January 2020 was 17.50%. From 21 January 2020 to 20 January 2021 the rate was 17.25%.

Source : Kallanish