Worldwide: [TAX] Special Alert: Anti-Dumping Investigation On Exports Of Polypropylene Copolymer ("PPC") From Malaysia To Indonesia

(A) Introduction

On 14 August 2023, the Indonesian Anti-Dumping Committee ("KADI") initiated an anti-dumping investigation against the exports of Polypropylene Copolymer ("Product") from the Republic of Korea, Vietnam, United Arab Emirates ("UAE"), Malaysia, and Singapore ("Alleged Countries") to Indonesia. The Product is commonly classified as:

(B) What Is The Investigation?

In the investigation, the KADI will investigate whether there is an existence of dumping from the Alleged Countries. If the answer is in the positive, KADI will further determine whether the dumping activities have caused injury to the Indonesian domestic producer(s) of the Product.

PT Chandra Asri Petrochemical Tbk ("CAP") in Indonesia is the representative of the domestic industry and the petitioner for the investigation.

(C) Material Allegations Against Malaysian Exporters

Based on KADI's announcement, it was stated that there are preliminary evidence of dumping and losses to the Indonesian Domestic Industry ("IDN") who produces similar products / goods, and it was found that there is a causal relationship between dumping and losses experienced by the IDN.

(D) Remark & Important Deadlines

Given the investigation above, Malaysian PPC manufacturers must immediately assess among others the following:

(i) Whether it manufactures the Product subject to the investigation;

(ii) Whether it exports the Product to Indonesia;

(iii) What is the export volume and value to Indonesia;

(iv) What is the market share of the Malaysian PPC manufacturer's Product in Indonesia;

(v) What is the price sold in Malaysia compared to the exported price sold to Indonesia and other countries; and

(vi) Whether there are any other factors that could contribute to the injury allegedly suffered by CAP.

Any exporters in Malaysia that are interested to oppose/participate in the investigation must indicate their interest on or before 27 August 2023. The KADI will then provide the necessary questionnaire, which must be filled up and submitted within 30 days (or further extended 30 days) from the receipt of the questionnaire.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.