The US is accusing the biggest and oldest tubular goods producer in Batam, PT Citra Tubindo Tbk, of circumvention dumping on Chinese products exported to the country. The probe into the alleged dumping is still ongoing at the World Trade Organisation (WTO).
Director of trade safety at the Trade Ministry's directorate general of foreign trade, Oke Nurwan, said in Batam that Citra Tubindo was accused of exporting products, originating from China, to the US by using a Certificate of Origin (CoO) Indonesia.
"The US' report has been running at the WTO this year. If the accusation is proven, there will be sanctions imposed on the trading of pipe products in that country," said Oke in a recent interview.
According to Oke, the Trade Ministry has explained to the US that for producing the tubular goods, Citra Tubindo used steel or raw materials imported from China. The company later processed the materials into products with certain characteristics as demanded by their US consumers.
"But the processed products were considered to have not yet met the characteristics required," said Oke.
If the accusation was proven, he said, the US would slap higher import duties on the tubular products.
"This will reduce our competitiveness," said Oke, adding that the investigation process on the alleged dumping practices would take around 18 months.
He said his institution continued to monitor international trade activities carried out by business players in Indonesia so that they could run in a healthy manner and within the WTO's corridors.
"We are fully supporting Citra Turbindo. This company is one of the symbols of Indonesia's industrial advancements. It is the nation's potential. We will support the company's activities as long as it remains within the WTO's corridors," said Oke.