Do Anti - Dumping Duty Imposed by USA on India would affect Paper Carry Bag Export
The overall market size of packaging industry of India is approximately USD 71.90 Billion till March 2023 and it is expected that the industry would grow with CAGR of 12.60% and by the end of year 2028, the market size would reach upto USD 130.14 Billion. The packaging industry include of export as well as domestic consumption of paper carry bags, corrugated boxes and other related paper packaging products. The demand of packaging products grew drastically since last decade as during this period, the consumer market grew manifold focusing on food industry, personal care and pharmaceutical products. After COVID 19 pandemic, packaging industry is also one of the fastest growing sector in India. Since last few years, the packaging industry has been supported by advanced technologies as now the paper carry bags and corrugated boxes are being manufactured with help of automatic mechanical plants. The growth of packaging industry is being driven because of certain factors such as rapid growth of population, increase of income levels, improved lifestyles of people etc.
One of the interesting fact about Packaging sector of India is that, along with fulfilling of domestic demand of packaging products, India is one of the prominent exports of paper carry bags and corrugated boxes to Western countries. United States, United Kingdom, United Arab Emirates and other Middle Eastern countries are prominent export zones for India, which makes India as second largest paper carry bags manufacturers and suppliers across the globe. During the year 2022, the Indian export shipment of paper carry bags was around 249400 exported by 7366 exporters of India. According to CK PAPER MART, the top three exporters of paper carry bags in entire globe are China, which done 263874 shipments, India made 249378 shipments and then Vietnam made 147896 shipments.
However, the reason for counting the INDIA’s contribution in International packaging industry is the landmark decision made by USA in first quarter of 2023, when the entire paper bag manufacturing and exporting nations got shocking waves from USA in form of imposition of Anti – Dumping duty on paper carry bags. On 30 May 2023, the domestic producers of paper carry bags and corrugated boxes filed the petition with United States Department of Commerce and United States International Trade Commission with request to save their domestic packaging companies and asked USA government to impose antidumping duties on import of paper carry bags from Cambodia, China, India, Colombia, Vietnam, Turkey, Malaysia, Portugal, Taiwan etc. The domestic manufacturers of packaging material in USA have alleged that the import of paper bags have acquired more than 74% of the paper bag market in USA due to which the local manufacturers of USA are being affected. USA government is in process to impose antidumping duty between 22.05% to 88.56% depending upon the paper bag supplies and suppliers profile in USA market. Under the business law of USA, the domestic paper bag industry of USA might file the antidumping duty investigation into the pricing of an imported product to determine whether the imported products can be sold at less than fair value in USA.