Anti-dumping/countervailing duty on Indian products: matchbox exporters yet to enter US, Turkish markets

28 Sep, 2010

Pakistan's exporters of match box have yet to capitalise the opportunity of introducing their products in the markets of Turkey and the United States where "antidumping/countervailing" duties have been imposed on these products from India.
According to sources, the country's match products could avail the opportunity of big markets in the two foreign countries after imposition of duties on these products largely imported from India.
A few months ago, sources said, the United States International Trade Commission (USITC) had determined that matchbox import from India had materially injured a US industry. Further, expressing its intention to impose antidumping or countervailing duty on the import of match box, US Department of Commerce also determined that this item was subsidised and was being sold in the US at less than fair value.
Besides, Turkey had also imposed 0.64 $ per kg countervailing duty on import of Match Box (HS Code: 360500). Indonesia and India were to face the duty as the two countries were the main suppliers of this product to Turkey, sources said. As Pakistan was among those countries whose names were exempted from duty, it could export this product to Turkey.
According to sources in Trade Development Authority of Pakistan, the respective exporters of match box were informed soon after the information regarding the imposition of duties was received for capitalising the opportunity. But, sources said, the exporters of this item are still not moving from the traditional markets in African region where they export over 50 percent of their products.
Despite being duty-free, Pakistan is not exporting this item to USA and Turkey while India, as one of the top exporters of match, was the main supplier of this product, they added. Unfortunately, sources said, the export of match box was decreased for the last few years due to what the exporters claimed smuggling of poplar wood to Afghanistan and increase in the price of the wood in the domestic market.
Though, more than 50 percent of the total export of matches from Pakistan is shipped to African countries, Pakistan has some share in the markets of Egypt, Afghanistan, UAE, Iraq and Tanzania. In the markets of these countries, too, Pakistan, under the present situation of high price of wood, was fast losing competition with India, China and Malaysia, they added.

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