India’s Directorate General of Trade Remedies announced on March 20 that it has initiated an anti-subsidy investigation into the import of multi-layered paperboards from China and Indonesia. The Indian Paper Manufacturers Association representing the Indian paper industry had submitted the relevant application to the agency.
The Directorate General of Trade Remedies, under the Ministry of Commerce and Industry of India, issued a notification on Friday, March 20, regarding the anti-subsidy investigation into the import of multi-layered paperboards from China and Indonesia. The products under investigation are multi-layered paperboards made from at least 51% virgin wood pulp, regardless of whether they are coated or not. Specific products included in the inquiry are folding box boards (FBB), solid bleached sulfate boards (SBS), raw paper or boards for making disposable cups, and boards for liquid packaging, with a weight range of 140-450 grams per square meter.
The Indian Paper Manufacturers Association representing the Indian paper industry lodged a plea with the Indian Ministry of Commerce for the investigation. The association claimed that exporters from China and Indonesia have received various subsidies from relevant county governments (including the provinces and cities where the producers/exporters are located) and other public institutions at different levels, such as grants, loans, guarantees, tax incentives, export credits, goods and services, or equity investment.
An anti-subsidy investigation is a protective measure used in international trade to address unfair competition. If a country’s government subsidizes its domestic companies, enabling them to export products at abnormally low prices to other countries, the importing country can initiate an “anti-subsidy investigation” to determine whether such practices harm its relevant industries. This can lead to reduced sales, decreased profits, and even layoffs or closures of factories for businesses in the importing country due to importing low-priced goods.
According to data from the United Nations Commodity Trade Statistics Database (UN COMTRADE), India imported paper and paperboard products worth about $857 million from China in 2024.
Additionally, on March 20, the Directorate General of Trade Remedies also launched a sunset review of certain flat rolled aluminum products imported from China to determine whether to continue the anti-dumping duties. A “sunset review” is a crucial procedure in India’s trade remedy system, mainly aimed at reassessing anti-dumping or countervailing duties before their expiration. Its primary objective is to determine if not extending these duties would lead to dumping or subsidy practices reoccurring and causing harm to Indian industries.