The Trade Department has started a formal investigation on the petition of Mandaue-based Green Coil Industries Inc. against PT Johnson Hygiene Products Inc. of Indonesia for allegedly dumping mosquito coils in the Philippines at unfair prices.

This is the industry’s first-ever anti-dumping complaint against an imported brand.

An industry source said the industry’s main concern was the far-reaching effects of the alleged dumping on local farmers, who stand to lose the most from the unfair trade practice.

“It has impact on the local industry. Mosquito coils have local content of nearly 100 percent. The raw materials are mainly agricultural products and if local products lose market share because of the dumping, farmers who rely on the industry would be severely affected,” the source said.

The source said the Trade Department had a meeting last week to determine probable cause for anti-dumping against the Indonesian company following the petition of Green Coil, the largest mosquito coil maker in the country. Green Coil, which is owned by businessman Benson Dakay, manufactures mosquito coils under the brands Lion Tiger, Lion Katol and Tiger Katol.

The company said PT Johnson Hygiene had been selling the Baygon Super and Baygon Lavender brands of mosquito killer in the Philippines at prices lower than the retail levels in Indonesia, where the mosquito coils are manufactured.

The goods were said to cost $0.185 per box in Indonesia, higher than the $0.11 export price in the Philippines, the Bureau of Import Services said in a report.

The source said if the Trade Department found probable cause for anti-dumping measures, it would conduct consultations with all parties involved and recommend to the Tariff Commission public hearings and punitive measures against the Indonesian company.

The department could impose provisional anti-dumping measures against the imported mosquito coils from Indonesia while the Tariff Commission is still hearing on the anti-dumping case.