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NEWS UPDATES 18 September 2009

Indonesian textiles hit extra tariffs in Turkey

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The Turkish government has been imposing additional import tariffs on Indonesian textiles since August 1, the same day it began imposing extra levies on Indonesian bicycle and motorcycle tires, to counter what it claims are dumping practices, the Jakarta Post reported.

Indonesian Textile Association (API) deputy chairman Ade Sudrajat said the Turkish government had imposed between 2 and 3 percent additional import duties on 12 Indonesian textile manufacturers that had been "cooperative" during the dumping investigation.

"However, the Turkish government imposed an extra 8 percent levy on companies that were not so cooperative filling in the questionnaires," he said in an interview Tuesday.

Dumping is a global trade term that refers to companies exporting goods in bulk and at lower prices than their production costs, or than those charged in their home country, in such a way that it undermines local industries.

The dumping allegation goes back to 2007, when 22 Turkish firms petitioned seven textile makers from three countries - China, India and Indonesia - for allegedly dumping sewing thread of man-made staple fibers; yarn (other than sewing thread) of synthetic staple fibers; yarn (other than sewing thread) of artificial staple fibers; and yarn (other than sewing thread) of man-made staple fibers onto the Turkish market.

The companies accused of dumping were primarily PT Polysindo Eka Perkasa, PT Indo Liberty Textiles and PT Yans Manunggal Jaya; later, the allegation was extended to four other firms; PT Kamaltek in Semarang, Central Java; PT Sunrise Bumi Textile in Bekasi, West Java; and PT Elegan Textile Industry and PT Apac Inti Corpora, both located in Jakarta.

API chairman Benny Soetrisno said previously Indonesian textile manufacturers might redirect exports from Turkey to Syria and Russia because of the allegation.

API data shows Indonesia exported $61.54 million in 2008 in yarn, representing 7.2 percent of Indonesia's total exports globally.

Although dismissing the allegation manufacturers had been dumping textiles on the Turkish market, he said API would probably do nothing, not even take the matter to the World Trade Organization's (WTO) Dispute Settlement Body.

"If the companies are willing to pay more for expensive lawyers, they may take the case to the WTO's Dispute Settlement Body," said Ade.

Indonesian Chamber of Commerce and Industry (Kadin) chairman M.S. Suleman Hidayat said the government had been giving minimal legal assistance for local companies battling dumping accusations.


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