Malaysia Extends Tax Coverage on Dumping Plastic Products

The Malaysian Anti-dumping Authority extends the tax coverage for its Anti-dumping tariffs on Polyethylene Terephthalate plastic, by submitting a petition for a sunset review of import duties enforcement over products from Indonesia. The stipulation will cause plastic exporters from Indonesia to pay anti-dumping duties for five years. This policy has been implemented since 2005 by Malaysian authorities.

Sunset review is charged since Malaysia is concerned with the performance of its domestic industries after the duties enforcement is completed. From 2005 to 2010, four Indonesian exporters were charged with the anti-dumping duties -- PT Indorama Synthetics Tbk, PT Bakrie/Kasei Corporation, PT Petnesia Resindo, and PT Polypet Karyapersada. Anti-dumping duties are valued at 2 to 17.69 percent, an additional burden for exporters.

Ernawati, Director of the Trade Security of the Ministry of Trade, said that the anti-dumping duties will reduce the number of exported products to Malaysia, thus creating an unpleasant situation for domestic industries. “The product sales price will not be able to compete after the reintroduction of anti-dumping duties. Our products are often imposed with an anti-dumping duties review," said Erna, Thursday.

Two companies threatened to be slapped with breach of the anti-dumping duties extension, offered to refute the charges. These two are the Plypet Karyapersada and Indorama. A company explaining in detail matters related with the sunset review process will be considered as cooperative, so the amount of duties imposed on them may be affected by it.

Budi Santoso Sadiman, Deputy General Chair of the Indonesia Aromatic, Plastic, and Olefin Industries Association, admits that the extension will influence the plastic exports. Unfortunately, Budi is unable to mention the impact since Polyethylene Terephthalate industry is new within the Association.