Uncoated Writing and Printing Paper from Indonesia under Anti-Subsidy Probe - DGTR Initiates Countervailing Duty Investigation on Complaint of IPMA on behalf of Domestic Industries

Ø Anti-Subsidy will Apply to All WPP Imports from Indonesia which Accounts for Two Thirds Share of WPP Import

Related Actions:

Ø Anti-dumping Duty on Décor Paper (Laminated Paper excluding Printed Paper) from China Notified on ITC Ltd Complaint by Notification 15-ADD/24.05.2022.

Ø Anti-dumping Duty on Uncoated copier paper from Indonesia was notified by Ntfn 56-ADD/04.12.2018 and expired on 28 February, 2022

[DGTR Initiation Notification Case No. CVD/OI/004/2026 dated 30 September 2026]

A countervailing-duty investigation has been formally initiated against imports of uncoated writing and printing paper made from virgin wood pulp, up to 150 GSM, originating in or exported from Indonesia. No anti-subsidy duty is imposed at the initiation stage; DGTR will investigate the alleged subsidies, injury and causal link and subsequently determine whether a duty recommendation is warranted.

1. Product under Investigation

· Uncoated writing and printing paper made purely from virgin wood pulp, having GSM up to and including 150.

· Covers paper in sheets, rolls, reels or other forms used for writing, printing and graphic purposes.

· Includes, inter alia, maplitho, wood-free, printing, writing, drawing, lithographic, offset, duplicating, account book, envelope, notebook and calendar paper.

2. Major Exclusions

The investigation specifically excludes:

· Paper/paperboard above 150 GSM

· Cut-size copier paper

· Currency note, airmail and photographic base paper

· Bank and cheque paper

· Stamp paper

· ADP machine paper

· Tissue, wrapping, decor, filter and fluting paper

· Wallpaper and poster paper

· Kraft paper

· Paper made from recycled pulp or agro-waste

· Fine paper for applications other than writing/printing

· Newsprint.

3. HS Classification

· Classified under Chapter 48, Heading 4802.

· Major import classifications:

o 4802 20 90

o 4802 54 20

o 4802 55 10

o 4802 55 90

o 4802 56 90

o 4802 57 10

o 4802 57 90

o 4802 61 10

o 4802 61 90

· Classification is indicative only and not binding on the scope of the PUC.

4. Subject Country

· Indonesia — imports originating in or exported from Indonesia are covered by the investigation.

5. Applicant / Domestic Industry

· Investigation initiated following an application by the Indian Paper Manufacturers Association (IPMA).

· Applicant domestic producers:

o Bilt Graphic Paper Products Ltd.

o West Coast Paper Mills Ltd.

· Supporting producers:

o Andhra Paper Ltd.

o Century Pulp and Paper

o JK Paper Ltd.

o Orient Paper & Industries Ltd.

o Star Paper Mills Ltd.

· Other domestic producers identified: ITC Ltd., Pudumjee Paper Products Ltd. and Satia Industries Ltd.

6. Period of Investigation

· POI: 1 April 2025 – 31 March 2026.

· Injury period:

o 1 April 2022 – 31 March 2023

o 1 April 2023 – 31 March 2024

o 1 April 2024 – 31 March 2025

o POI: 1 April 2025 – 31 March 2026.

7. Alleged Subsidies

DGTR has recorded prima facie evidence concerning 23 alleged subsidy programmes, covering:

A. Goods/services below adequate remuneration

1. Standing timber

2. Government prohibition on log exports

3. Land

4. Electricity

B. Tax/VAT incentives
5. Income-tax reduction
6. Import-duty exemption
7. Import-duty exemption on raw materials
8. VAT exemption
9. Accelerated depreciation/amortisation
10. Land & building tax relief
11. Tax holiday
12. Corporate income-tax deduction
13. Income-tax reduction on dividends

C. Special Economic Zones
14. Reduced tax
15. Deferred import duty on capital goods/equipment
16. Reduction in net taxable income
17. Accelerated fiscal depreciation/amortisation
18. Carry-forward of losses
19. Land-tax deduction

D. Export incentives
20. Indonesia EXIM Bank export-facilitation benefits
21. Export-credit guarantees
22. Import-duty drawback

E. Preferential finance
23. Preferential loans from Bank Mandiri.

8. Injury Allegation

DGTR found prima facie evidence that:

· Imports increased in absolute terms and relative to Indian production and consumption.

· Indonesian imports represented about two-thirds of total imports of the subject goods.

· Import landed prices declined during the injury period.

· Landed prices remained below the domestic industry's selling prices and fell below its cost of sales during the POI.

· Domestic prices were consequently suppressed/depressed.

· The domestic industry suffered financial losses, a steep decline in ROCE, and increased inventories.

9. Initiation of CVD Investigation

· DGTR has initiated the investigation to determine:

o Existence of countervailable subsidisation;

o Degree and effect of such subsidisation;

o Injury to the domestic industry; and

o Causal link between subsidisation and injury.

· DGTR may recommend anti-subsidy/countervailing duty if warranted and at a level considered adequate to remove the injury.

10. Consultation with Indonesia

· Pre-initiation consultations with the Government of Indonesia were held on 22 September 2026 under Article 13 of the ASCM.

· Indonesia also submitted written comments, which have been taken on record.

11. Submission Deadline

· Interested parties must register on the SETU Portal and submit information through the portal.

· Questionnaire responses and other submissions are generally due within 37 days from transmission of the intimation letters to the known interested parties.

· The 15-day period for comments on PUC/PCN methodology runs concurrently.

· If information is not supplied within the prescribed period, DGTR may proceed on the basis of facts available.