Anti-dumping
Investigation Initiated on Caustic Soda from Thailand, Chinese Taipei and
Norway – Normal Value Taken from International Publication to Establish Dumping
Margin
[Ref: F. No.14/1/2010-DGAD dated 31st May 2010]
Sub:
Initiation of anti-dumping investigation on imports of Caustic Soda originating
in or exported from Thailand, Chinese Taipei and Norway.
Alkali Manufacturers Association
of India, New Delhi have filed an application before the Designated Authority
(herein after referred to as the Authority) in accordance with the Customs
Tariff Act, 1975 as amended in 1995 and Customs Tariff (Identification,
Assessment and Collection of Anti-Dumping Duty on dumped articles and for
determination of injury) Rules, 1995 (herein after referred to as Rules) for
initiation of anti dumping investigation concerning alleged dumping of Caustic
Soda (hereinafter referred to as subject goods) originating in or exported from
Thailand, Chinese Taipei and Norway (hereinafter referred to as subject
countries) .
2. AND WHEREAS, the Authority finds that sufficient prima facie
evidence of dumping of subject goods by the subject countries, injury to the
domestic industry and causal link between the dumping and injury exist, the
Authority hereby initiates an investigation into the alleged dumping, and
consequential injury to the domestic industry in terms of the Rules 5 of the
said Rules, to determine the existence, degree and effect of alleged dumping
and to recommend the amount of antidumping duty, which if levied would be
adequate to remove the injury to the domestic industry.
Domestic Industry
3. The application has been filed by Alkali Manufacturers Association
of India, New Delhi as domestic industry. Information relevant to the present
investigation has been provided on behalf of participating producers. The
production of the applicant companies and that of companies expressing support
for the petition, taken together, account for 64.81% of total Indian production
during the POI.
The Authority has prima
facie determined that (a) production of the participating companies and
supporting companies taken together constitute a major proportion of Indian
production and ; (b) the application has been made by
or on behalf of the domestic industry.
4. The Authority after examining the above, prima facie determines
that the petitioner constitutes domestic Industry within the meaning of the
rule 2(b) read with 2(d) and the application satisfies the criteria of standing
in terms of Rule 5 of the Rules .
Product under consideration
5. The
product under investigation in the present case is Sodium Hydroxide commonly
known as Caustic Soda (also referred to as subject goods hereinafter),
originating in or exported from Thailand, Chinese Taipei and Norway. Caustic
Soda is an inorganic chemical and is soapy, strongly alkaline, odourless chemical and finds application in manufacture of
pulp and paper, newsprint, viscose yarn, aluminum, cotton, laundry soaps,
detergent, dyestuffs, drugs and pharmaceuticals, petroleum refining, etc.
Caustic Soda is available in two forms i.e. Lye and solids. The present
investigation covers all forms of Caustic soda.
6. Caustic
Soda is classified under ITC(HS) Codes 2815.11 and
2815.12. The classification is, however, indicative only and is in no way
binding on the scope of the present investigation.
Like Articles
7. The applicant has claimed that the goods produced by them are
“like articles” to the goods originating in or exported from the subject
countries. The subject goods produced by the domestic industry and imports from
subject countries are comparable, technically and commercially substitutable in
terms of physical, technical specifications, functions or end-uses. Therefore,
for the purpose of investigation, the Caustic Soda produced by the applicant
companies is being treated as like articles of Caustic Soda imported
from subject countries within the meaning of the Anti Dumping Rules.
Countries involved
8. The countries involved in the present investigation are Thailand,
Chinese Taipei and Norway.
Dumping
Normal Value
9. For the purpose of normal value, the petitioner has relied upon
the data relating to domestic prices of the subject goods in subject countries , sourced from Harriman Chemsult,
which is a leading international consulting company in market trends and
pricing in various chemicals and which publishes prices of Caustic Soda in
different parts of the world.
10. For the purpose of initiation, the Authority has prima-facie
considered the normal value of subject goods in subject countries as claimed by
the petitioner.
Export Price
11. Petitioner have claimed export prices on
the basis of transaction-wise import data in respect of subject countries
obtained from IBIS. Adjustments have been claimed on ocean freight, marine
insurance, THC charges, inland freight and commission to arrive at the export
price at ex-factory level. The Authority considers the said data furnished by
the petitioner as sufficient prima facie evidence of the net export price of
the subject goods from the subject countries for the purpose of initiation.
Dumping Margin
12. There is sufficient prima
facie evidence that the normal values of the subject goods in the subject
countries are significantly higher than the net export prices indicating
prima-facie that the subject goods are being dumped by the exporters from the
subject countries. Normal value and export price have been compared at ex-factory
level which shows significant dumping margin in respect of subject countries.
Injury and Causal Link
13. The petitioner has furnished information on various parameters
relating to material injury. The applicant has furnished evidence regarding the
injury having taken place as a result of the alleged dumping in the form of
fall in capacity utilization and negative return on capital employed and
substantial decline in profitability because of increased volume of dumped
imports, price undercutting and price underselling from the subject countries.
There is sufficient prima-facie evidence of the material injury being suffered
by the domestic industry and the same being caused by dumped imports from
subject countries.
Period of Investigation
14. The period of investigation (POI) is 1st October, 2008 to 31st
December 2009 (15 months) for the purpose of present investigation. The injury
investigation will however cover the periods April, 2006–March,2007, April,2007-March,2008, 2008-09 and the POI.
Submission of information
15. The exporters and importers known to be concerned and domestic
industry are being informed separately to enable them to file all information
relevant in the form and manner prescribed. Any other party interested to
participate in the present investigation may write to:
The
Designated Authority
(Directorate General of
Anti-Dumping & Allied Duties)
Government of India
Ministry of Commerce
& Industry
Department of Commerce
Udyog Bhavan,
New Delhi-110011.
Time limit
16. Any information relating to this investigation should be sent in
writing so as to reach the Authority at the above address not later than 40
days from the date of publication of this notification. If no information is
received within the prescribed time limit or the information received is
incomplete, the Authority may record their findings on the basis of the facts
available on record in accordance with the Rules supra.
Inspection of Public File
17. In terms of rule 6(7) any interested party may inspect the public file
containing non-confidential versions of the evidence submitted by other
interested parties.
18. All interested parties shall provide a confidential and
non-confidential summary in terms of Rule 7 (2), for the confidential
information provided as per Rule 7 (1) of the Rules supra.
19. In case any interested party refuses access to and otherwise does
not provide necessary information within a reasonable period, or significantly
impedes the investigation, the Authority may record its findings on the basis
of the facts available to it and make such recommendations to the Central
Governments as deemed fit.