On October 27, 2023, the Indonesian Trade Security Committee (Komite Pengamanan Perdagangan Indonesia – KPPI) issued Notice No. 07/KPPI/PENG/10/2023, launching an investigation into the application of safeguard measures for cotton fabric products from Vietnam.
The Indonesian Textile Association (API) filed a request on behalf of five cotton fabric weaving companies urging the KPPI to initiate an investigation. This request comes in the context of Trade Security Measures related to the importation of cotton fabric products allegedly caused or threatened to cause significant damage to Indonesia’s domestic market.
The applicant’s total output in 2022 accounted for 56.13% of the national total, meeting the conditions to file the request for investigation with the KPPI.
The investigation process follows Government Regulation No. 34 of 2011 (PP 34/2011) related to anti-dumping measures, compensation measures, and trade remedy under the Decision of the Minister of Trade of Indonesia No. 85 of 2003 (Kepmenperindag 85/2003) concerning the Investigation Request for Protecting the Domestic Industry from the Consequences of Increased Importation.
The products under investigation include cotton fabric classified under HS codes 5208.21.00, 5208.22.00, 5208.31.90, 5208.33.00, 5208.41.90, 5208.42.10, 5208.42.90, 5208.43.00, 5208.52.10, 5208.59.20, 5208.59.90, 5209.11.10, 5209.11.90, 5209.19.00, 5209.21.00, 5209.31.00, 5209.49.00, 5209.51.10, 5210.21.00, 5210.32.00, 5210.41.10, 5210.49.00, 5210.51.10, 5210.59.10, 5210.59.90, 5211.31.00, 5211.32.00, 5211.39.00, 5211.59.10, 5211.59.90, 5212.15.90, 5212.21.00, and 5212.23.00.
During the period 2020-2022, the output of the applicant decreased by 1.80%. In 2020, the applicant’s output was 100 index points, rising to 103.14 index points or 3.14% in 2021. However, in 2022, the output dropped by 6.51%. Experts attribute this decrease to reduced demand due to the influx of imported products saturating the domestic market.
In terms of revenue, domestic sales experienced a decline of 7.12% from 2020 to 2022. In 2020, domestic sales were 100 index points, decreasing to 92.26 index points or 7.74% in 2021. In 2022, domestic sales further decreased to 86.27 index points or 6.49%. The cause was identified as an overflow of imported products in the domestic market.
Related parties can review detailed information about the investigation in the initiation notice. Relevant parties with rights and interests can register as interested parties by submitting written proposals before November 11, 2023, which is 15 days from the issuance of the initiation notice.
All submissions/requests from Vietnamese stakeholders must be sent both in writing and electronically, clearly stating the name, address, email, phone number, and fax number of the related party to the KPPI.
To safeguard their interests, Vietnamese businesses involved in the investigation are advised to contact a reputable legal firm specializing in anti-dumping and trade remedy in Vietnam and internationally to receive timely assistance.
The initiation notice can be downloaded here.