The government plans to study the impact on local users and related industries before determining any anti-dumping measures for biaxially-oriented polypropylene (BOPP) film, which is widely used in food packaging, medicines and medical supplies, and daily use products.
Keerati Rushchano, director-general of the Foreign Trade Department, said the department is considering whether to apply an anti-dumping (AD) duty on BOPP film after a local producer made the request late last year, alleging dumping by China, Indonesia and Malaysia.
“The department welcomes all data and comments from related industries including local BOPP producers and companies that use BOPP as a raw material such as food packaging, medicines, medical supplies and daily use products that may be affected by AD duties,” said Mr Keerati.
Thai President Food Plc (TF), the maker of Mama instant noodles, recently notified the department instant noodle packaging will be hurt by higher production costs if there is an import duty on BOPP film.
Pun Paniangvait, manager of TF, said an AD tariff on BOPP film would affect a wide range of industries that rely on it to make packaging.
He wants the government to carefully study this issue and its impact on all related industries.
“Mama noodles would have higher packaging costs if the AD tariff is applied,” said Mr Pun.
Packaging costs currently comprise about 10% of the company’s total costs, or about 0.50 baht per sachet, he said.
Mr Pun said the prices of all instant noodles have been capped for 13 years, as they are regulated as a price control product a with a maximum price of six baht per sachet.
“We disagree with the request made by one BOPP film producer to apply the AD measure, as higher tariffs will hike packaging costs,” he said.
Previously the printing and packaging industry club of the Federation of Thai Industries filed a letter to oppose the AD tariff, saying the hike will hurt entrepreneurs in the packaging industry including makers of plastic, adhesive tape, stickers and paper coating.
Other products that could be affected include daily use and affordable consumer products such as instant noodles sachets, bread sachets, snack sachets, candy sachets, face masks, gloves, clothing sachets, condom sachets, mineral powder sachets, medical supplies, drinking water labels and vegetable oil labels, said the letter.
According to the Commerce Ministry, Thailand imported a relatively high volume of BOPP film from 2017 to 2019 from Malaysia, China and Indonesia.
Imports from the three countries comprised 75.6% to 87.5% of total imports a year during that period.
Imports from the three countries rose to 18,541 tonnes in 2019 from 15,075 tonnes in 2018 and 12,411 tonnes in 2017.
Import value rose to 1.01 billion baht in 2019 from 902 million in 2018 and 718 million in 2017.