Indonesia Imposes Anti-Dumping Duties on Certain Chinese Steel Products

Steel wire rod product.

A country may export goods to another country at a price lower than the price on its own domestic market, this practice is called Dumping. Importing country can take protection against dumping from other country by imposing anti-dumping duties on the imported goods. The imposition of the duties is enacted after an investigation carried out by National Anti-Dumping Committee, proving that the dumping has caused injury to domestic market or industry. The investigation report must show the causal link between the dumping and the injury. Based on the report, recommendation for imposition of anti-dumping duties is then raised to implementing institutions, such as Customs or the Ministry of Finance.

Anti dumping import duties will be addition to duties based on Most Favored Nations (MFN) tariffs or Free Trade Agreement (FTA) preferential tariffs scheme. A temporary anti-dumping duty can also be imposed to imported products while an investigation is still underway, if initial evidences obtained by the commitee are considered sufficient to do so. The duties can re-claimed if the report shows no dumping causing injury to domestic industry. Local business can also propose to the committee to carry out investigation to any indication of Dumping.

Anti-dumping duties on Chinese Steel Wire Rod products

Indonesia Anti-Dumping Committee (KADI) has recently carried out investigation on certain steel product imported from China allegedly a Dumping practice that causes injury to domestic steel industry. The result had showed there is a causal link between them and a recommendation has been raised to the Ministry of Finance for imposition of Anti-Dumping import duties. As a response to this, on March 2018, the Indonesia Ministry of Finance has issued a regulation number 27/PMK.010/2018 for the imposition of Anti-Dumping import duties to Steel Wire Rod products imported from China.

Here is the list of Steel Wire Rod products imported from China imposed Anti-Dumping duties by Indonesia as mentioned in the regulation.

The regulation has also listed 29 Chinese companies exporting those Steel Wire Rod Products to Indonesia to which anti-dumping import duties is imposed with various tariffs ranging from 10.2% to 13.5%, while other exporters not in the list will be charged at 13.5% tariff. This provision will remain effective for 3 years since this Minister regulation is issued in March 2018.

Related regulations

Here are recent Indonesia regulations you may download regarding anti-dumping measures:

  • Minister of Finance Regulation No. 27/PMK.010/2018 regarding the imposition of anti dumping import duties to Steel Wire Rod products imported from China.
  • Indonesia Government Regulation No. 34 Year 2011 regarding anti dumping, compensation and trade safeguard measures.

We hope this short article could give you some knowledge and understanding of anti-dumping import duties. If you need more information or advices on customs or international trade compliance, especially in relation to Indonesia, please send your query through this E-Consulting link or simply email us at [email protected]

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