In an era of increasing economic nationalism and complex global supply chains, trade remedies have become a critical tool for protecting domestic industrial interests. At our firm, we provide comprehensive legal and analytical services to navigate the intricate landscape of anti-dumping regulations in Indonesia and abroad.
Anti-dumping measures are not merely legal hurdles; they are data-driven economic battles. Whether you are a domestic producer seeking protection from unfair pricing or an importer defending your market access, success depends on a granular understanding of the WTO Anti-Dumping Agreement (ADA) and Indonesia’s Government Regulation (PP) No. 34 of 2011.
Below, we detail our firm’s analytical approach to resolving these cases from both sides of the trade spectrum.
1. For Domestic Producers: Engineering a Successful Petition
Initiating an anti-dumping investigation requires more than just an allegation of “cheap imports.” The Indonesian Anti-Dumping Committee (KADI) demands rigorous preliminary evidence of dumping, injury, and a causal link.
Our Analytical Capabilities Include:
- Standing and Threshold Analysis: We ensure your petition meets the mandatory “Standing” requirements. Under Indonesian law, a petition must be supported by domestic producers representing at least 25% of total domestic production, and those supporting must account for more than 50% of the production of the group expressing an opinion.
- Proving “Material Injury”: We deploy economic modeling to track 15+ key injury indicators required by KADI, including sales volume, production levels, market share, profits, return on investment (ROI), capacity utilization, and negative impacts on cash flow.
- Establishing the Causal Link: Our team specializes in isolating the impact of dumped imports from other factors—such as changes in consumer preference or technology—to prove that the dumped goods are the direct cause of the domestic industry’s distress.
2. For Importers and Foreign Exporters: Defending Market Access
Being the subject of a KADI investigation can lead to the imposition of heavy Anti-Dumping Import Duties (BMAD), ranging historically from 0% to over 150%. Our defense strategy focuses on disrupting the technical findings of the investigating authority.
Our Analytical Capabilities Include:
- Deconstructing the Dumping Margin (DM): We conduct a deep-dive audit into the “Normal Value” (NV) and “Export Price” (EP). By analyzing domestic sales data in the exporting country and adjusting for terms of sale, taxation, and physical characteristics, we aim to prove the margin is de minimis (less than 2%).
- Questioning Injury Claims: We scrutinize the petitioner’s financial data. If the alleged injury is caused by internal inefficiencies, poor management, or a general market downturn rather than imports, we build a “Non-Attribution” defense to break the causal link.
- Audit and Verification Readiness: KADI often conducts on-site verification visits to cross-check data provided in questionnaires. We provide “mock audits” to ensure our clients’ accounting records and digital systems are fully aligned with WTO and KADI transparency standards.
3. Why Specialized Legal Counsel Matters
Anti-dumping cases are unique because they involve a split investigative structure. Within KADI, there are specialized sub-committees for Proving Dumping and Proving Losses. Our firm mirrors this structure, providing:
- Financial Expertise: To handle the complex price-to-price comparisons and cost-of-production analyses.
- Trade Economists: To interpret market dynamics and volume surges.
- Regulatory Experts: To manage the strict 12-to-18-month investigation timelines and public hearing requirements.
Conclusion
From the initial filing of a petition to the final recommendation of duties to the Minister of Trade, our firm ensures that your interests are protected by robust, evidence-based arguments. In a rules-based multilateral system, the side with the most precise data and strongest legal interpretation prevails.
Contact our Trade Remedy Group today to assess your case or prepare for upcoming KADI investigations.