India has initiated an anti-dumping investigation into imports of multi-layer paperboard originating from Indonesia, following a complaint from domestic manufacturers. The probe is being conducted by the Directorate General of Trade Remedies (DGTR), the arm of the Commerce Ministry.

The investigation was prompted by an application filed by the Indian Paper Manufacturers Association (IPMA) on behalf of the domestic industry. The IPMA has alleged that the domestic industry is suffering material injury due to the dumped imports of "Virgin Multi-layer Paperboard" from Indonesia. They requested an anti-dumping investigation concerning these imports.

The product under consideration is multi-layer board made of white or virgin wood pulp, whether coated or uncoated, also known as Virgin Multi-Layer Paperboard. It is made up of multiple layers of paper bonded together and pulp. This type of paperboard is commonly used in packaging for pharmaceuticals, FMCG (Fast-Moving Consumer Goods) products, food and beverages, electronics, high-end cosmetics, liquor, book covers, and publishing. However, coated/uncoated cigarette boards and paperboards made out of recycled/brown pulp or fibre are excluded from the investigation’s scope. Solid Bleached Sulfate Board (SBS) paperboard, a high-quality paperboard made from bleached virgin pulp, coated with clay and treated for moisture resistance, is also included. The investigation covers Folding Box Board (FBB), Solid Bleached Sulfate Board (SBS), Cup Stock Paper or Board and Liquid Packaging Board, all in the range of 140 to 450 GSM (grams per square meter).

The DGTR will investigate the existence, degree, and effect of the alleged dumping. The period of investigation (POI) is from April 1, 2024, to March 31, 2025. The injury investigation period will cover 2021-22, 2022-23, 2023-24 and the period of investigation. For the purpose of initiation, DGTR has considered normal value for Indonesia, estimated based on cost of production of the applicant domestic producers, duly adjusted for selling, general and administrative expenses along with a reasonable profit margin.

The authority has considered the period of investigation (POI) for the present investigation from 1st April 2024 to 31st March 2025 (a period of 12 months).

If the DGTR determines that dumping has occurred and it has caused material injury to domestic players, it would recommend the imposition of an anti-dumping duty on imports of multi-layer paperboard from Indonesia. The Finance Ministry would then take the final decision on whether to impose the duty.

Anti-dumping investigations are conducted to assess whether domestic industries have been hurt by a surge in cheap imports. Anti-dumping duties are imposed to countermeasure this effect under the World Trade Organization (WTO) multilateral regime. The duty aims to ensure fair trading practices and create a level playing field for domestic producers compared to foreign producers and exporters. Both India and Indonesia are members of the WTO.

India has already imposed anti-dumping duties on several products to tackle cheap imports from various countries, including China.