Faced with rising cheaper imports, especially from the Asean nations due to nil duty regime, the domestic paper industry has urged the government to impose safeguard duty of 10-12 per cent on paper imports.

“Rather than allowing us to fall sick and then give a cure, we are now asking for protection so that we don’t fall sick. The entire HS code of the paper basket barring newsprint should attract safeguard duty of 12-15 per cent”, Saurabh Bangur, newly elected President of Indian Paper Manufacturers’ Association (IPMA) told BusinessLine .

Bangur, who is Vice-Chairman of West Coast Paper Mills, said the domestic paper industry was not participating in the ‘Make in India’ programme because of structural problems.

“If we get the structural comfort through, say, a safeguard duty, then members of IPMA will look to participate. If you are talking Make in India, what is the harm in giving our members the opportunity of growth rather than giving it to the hands of the foreigners,” he added.

Under the India-ASEAN free trade agreement (FTA), import duties on almost all tariff lines under paper and paperboard have been progressively reduced, and from a base MFN rate of 10 per cent, the basic customs duty has come down to nil rate with effect from January 1, 2014.

Imports of paper and paperboard, excluding newsprint, into India from Asean in the past five years have grown at a compounded annual growth rate of 37.5 per cent in value terms and 38.5 per cent in volume terms.

GST rate

Bangur said IPMA had in its pre-Budget memorandum submitted to the Finance Ministry sought a goods and services tax (GST) rate of 6 per cent for the paper industry. “If not 6 per cent, they should ensure that it does not go beyond 12 per cent,” he said.

Bangur also said that earlier the GST is implemented, the more beneficial it is for the paper industry.

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