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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-01012024-251009
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 324]
NEW DELHI, FRIDAY, DECEMBER 29, 2023/PAUSHA 8, 1945
Case No. SSR-11/2023
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 29th December, 2023
Case No. SSR-11/2023
Subject: Initiation of Sunset Review Investigation concerning imports of 'Chlorinated Polyvinyl Chloride
(CPVC)- Whether or not further processed into compound' from China PR and Korea RP.
F. No. 7/28/2023 DGTR.—1. Having regards to the Customs Tariff Act, 1975, as amended from time to time
(hereinafter also referred to as the "Act") and the Customs Tariff (Identification, Assessment and Collection of Anti-
dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, as amended from time to time
(hereinafter also referred to as the "Rules" or the "Anti-Dumping Rules"), M/s DCW Limited (hereinafter referred to
as the "applicant") has filed an application before the Designated Authority (hereinafter also referred to as the
"Authority") for initiation of the sunset review investigation of antidumping duty on imports of "Chlorinated
Polyvinyl Chloride" (hereinafter referred to as the "subject goods" or "product under consideration") originating in or
exported from China PR and Korea RP (hereinafter referred to as "subject countries").
2. In terms of Section 9A, (5) of the Act, the anti-dumping duty imposed shall, unless revoked earlier, cease to
have effect on expiry of five years from the date of such imposition, and the Authority is required to review
whether the expiry of duty is likely to lead to continuation or recurrence of dumping and injury. In accordance
with the same, the Authority is required to review, on the basis of a duly substantiated request made by or on
behalf of the domestic industry as to whether the expiry of duty is likely to lead to continuation or recurrence of
dumping and injury.
A. Background of previous investigation
3. The original anti-dumping investigation concerning imports of the subject goods from the subject countries
was initiated by the Authority on 28.03.2019. The preliminary finding was issued vide notification no.
6/3/2019 dated 12th July 2019 recommending imposition of provisional anti-dumping measures. The Ministry
of Finance vide Notification No. 33/2019-Customs (ADD) dated 26th August 2019 imposed provisional anti-
dumping measures. The Authority vide Notification No. 6/3/2019 -DGTR dated February 19, 2020, confirmed
the preliminary finding and recommended imposition of anti-dumping duties for a period of 5 years, which was
imposed by the Ministry of Finance vide Notification No. 05/2020-Customs (ADD) on March 7, 2020. The
said duties were levied for a period of 5 years, unless revoked earlier, and are set to expire on 25th
August 2024.
B. Product under consideration (PUC)
4. The product under consideration in the present investigation is same as defined in the original investigation
which is as follows:
"10. The product under consideration for the purpose of present investigation is “Chlorinated Polyvinyl
Chloride (CPVC) - whether or not further processed into compound".
11. The product under consideration is classified under Chapter 39 of Customs Tariff Act. Import data received
from DGCI&S and DG Systems shows that the product has been imported under 39042110, 39042190,
39042210, 39042290, 39041090 and 39049000. The Customs classification is indicative only and not binding
on the scope of the present investigation.
12. The product is produced by chlorination via free radical chlorination reaction of Polyvinyl Chloride resin
(Suspension PVC/ Mass PVC) and is significantly more flexible and can withstand higher temperatures than
standard PVC. The chlorine content may vary from manufacturer to manufacturer. Various additives are
introduced into the resin (CPVC compounding) in order to make the material processable. These additives may
consist of stabilizers, lubricants, impact modifiers, processing aids, pigments.
13. CPVC is ideally suited for self-supporting constructions where temperatures go up to 90°C. CPVC exhibits
fire-retardant properties. It is very difficult to ignite and tends to self-extinguish when not in direct contact of
flame. It is used as a material for water piping systems in residential as well as commercial construction
because it can withstand corrosive water at temperatures of 40°C to 50°C or higher. It is used in hot and
coldwater plumbing distribution both at residential and commercial areas, fire protection, reclaimed water
piping, chilled water piping, hydronic piping and distribution (radiators, fan coils, etc.) and is used in many
industrial piping applications.”
5. The present application being a sunset review investigation, the product under consideration remains the same
as defined in the original final finding notification.
C. Like article
6. The applicant has claimed that there is no significant difference in the product produced by the domestic
industry and the one exported from the subject countries. The product produced by the domestic industry and
imported from the subject countries are comparable in terms of characteristics such as physical & chemical
characteristics, manufacturing process & technology, functions & uses, product specifications, pricing,
distribution & marketing, and tariff classification of the goods. The two are technically and commercially
substitutable and are used by consumers interchangeably. Further, the present application is for sunset review
investigation for the continued imposition of antidumping duty. The issue of like article has already been
examined by the Authority in the original investigation as well. The product produced by the domestic industry
is like article to the product under consideration produced and imported from the subject countries.
D. Domestic industry and standing
7. The applicant has been filed by M/s DCW Limited. Apart from the applicant, there is another producer Epigral
Limited (formerly known as Meghmani Finechem Limited) which commenced production during the period of
investigation itself. Epigral Limited has supported the application. It is noted that the applicant has purchased
imported product under consideration from Indian trader. The applicant has stated that the material was
purchased in order to ascertain factual situation in the market with regard to imported product prices. It is seen
that the said purchase volume is too small (around 0.1% of their production). It is also seen that the share of the
purchased product is insignificant in relation to DCW's production and the domestic sales. The applicant has
certified that it is not related to any producer in the subject countries or an importer in India.
8. In view of the same, and based on information available on record, the Authority is satisfied that the applicant
constitutes domestic industry within the meaning of Rule 2(b) and the application has been made 'by or on
behalf of the domestic industry'. Further, the application satisfies the requirements of standing in terms of Rule
5(3), even though the requirements of Rule 5(3) are not applicable in sunset review application,
E. Subject countries
9. The subject countries in the present investigation are China PR and Korea RP.
F. Normal value
China PR
10. The applicant has claimed that China PR should be treated as a non-market economy and the normal value
should be determined in terms of paragraph 7 of Annexure I of the Rules. The applicant has cited paragraph
8(2) of Annexure I of the Rules and have stated that the Chinese producers should be directed to show that
market economy conditions prevail in the industry producing the subject goods in terms of paragraph 8(3) of
Annexure I of the Rules failing which, the normal value for China PR should be determined in accordance with
paragraph 7 and 8 of Annexure I of the Rules. In view of the same, the subject to rebuttal by the responding
exporters from China PR, a presumption has been made regarding non-market economy for China PR and
normal value of the subject goods in China PR has been estimated in terms of paragraph 7 of Annexure I of the
Rules. The applicant has claimed normal value for China PR based on the import price from Thailand duly
adjusted to arrive at net ex-factory level. However, for the purpose of initiation, the Authority has considered
normal value for China based on price payable in India based on the cost of production in India and after
addition for selling, general & administrative expenses and reasonable profits.
Korea RP
11. Since there is no information available with regard to prices prevailing in the domestic market in Korea and the
product does not have dedicated code, the normal value based on the domestic price, import price or export
price could not be determined. The applicant has claimed normal value based on the cost of production in
Korea RP based on best estimates of the cost of the production with reasonable addition for selling, general &
administrative expenses and reasonable profit margins. For the purpose of initiation, the Authority has
considered normal value for Korea based on cost of production in India.
G. Export price
12. The applicant has claimed CIF export price based on market intelligence. The applicant has however contended
that the import prices reported in the customs data are unreliable because due to the form of measures, the
parties have resorted to reporting the prices to the customs authorities aligned to the benchmark, as established
by the following.
(a) alignment of the import price to the benchmark recommended by the Authority for computation of anti-
dumping duty quantum,
(b) the CIF export price reported to Indian customs has, by and large, not varied with the changes in prices of
principal raw material, PVC suspension resin,
(c) price difference between known imports of the product under duty exemption and duty paid category.
13. The Authority has considered import price based on DG Systems data at this stage, and pending investigations,
and determined CIF export price. Since the information is on CIF basis, it has been adjusted for ocean freight,
marine insurance, commission, inland freight expenses, port expenses and bank charges to arrive at ex-factory
basis.
H. Continuation of dumping, and dumping margin.
14. Based on the normal value and the export price determined, as stated above, it is seen that the weighted average
dumping margin is negative. Since the present investigation is a sunset review investigation, the Authority shall
determine likelihood of dumping after receipt of information and evidence from the interested parties, and
customs authorities, and appropriate examination of import prices reported to the customs authorities.
I. Likelihood of recurrence of dumping and injury.
15. The applicant has submitted that the anti-dumping measures in force have allowed it to grow in the domestic
market and its performance has improved over the years. The applicant has reported that the domestic industry
has not suffered continued injury in the present period.
16. The request for extension of measures is based on likelihood of recurrence of injury to the domestic industry in
the event of cessation of existing anti-dumping duty. For the purpose, the applicant has contended that that an
analysis of likelihood of dumping and injury is not appropriate on the basis of weighted average import price
because of benchmark form of measures in force, alignment of import prices to the benchmark (instead of PVC
suspension resin prices) and significant difference in import price in respect of imports reported under duty free
and duty paid category.
17. The applicant has provided information on likely dumping margin, price undercutting, injury margin, surplus
capacities in the subject countries, further capacity expansions in the subject countries, freely disposable
capacities and export orientation of the producers in the subject countries, dumping in third country, price
attractiveness and likely injury due to these exports as basis to establish the likelihood of injury. The applicant
has claimed that the current volume of imports coupled with significant difference in the price in duty free and
duty paid imports itself establishes likelihood of dumping and injury the domestic industry. The applicant has
claimed likelihood of significant cost and price undercutting, and significant dumping margin and injury
margin in the event of cessation of duty, as established by the duty free imports.
18. The information provided by the applicant, prima facie, shows recurrence of dumping from the subject
countries and likelihood of injury to the domestic industry in case of cessation of the anti-dumping duty.
J. Initiation of sunset review investigation
19. On the basis of the duly substantiated application of the applicant, and having satisfied itself on the basis of the
prima facie evidence submitted by the applicant, substantiating the likelihood of continuation/ recurrence of
dumping and injury, and in accordance with Section 9A(5) of the Act read with Rule 23 (1B) of the Rules, the
Authority hereby initiates a sunset review investigation to review the need for continued imposition of the
duties in force in respect of the subject goods, originating in or exported from the subject countries and to
examine whether the expiry of such duty is likely to lead to continuation or recurrence of dumping and injury
to the domestic industry.
K. Period of investigation (POI)
20. The period of investigation (POI) for the present investigation is 1st July 2022 to 30th June 2023 (12 months).
The injury period for the investigation will cover the periods 2019–20, 2020-21, April 2021-June 2022 and the
period of investigation.
L. Procedure
21. The sunset review investigation will cover all aspects of the final findings published vide Notification No.
6/3/2019-DGTR dated 19.02.2020, recommending the imposition of anti-dumping duty on the imports of the
subject goods originating in or exported from the subject countries.
22. The provisions of Rules 6, 7, 8, 9, 10, 11, 16, 17, 18, 19, and 20 of the Rules shall be mutatis mutandis
applicable in this review.
M. Submission of information
23. In view of the special circumstances arising out of COVID-19 pandemic, all communication should be sent to
the Designated Authority via email at email address [email protected] and [email protected] with a copy to
[email protected] and [email protected] It should be ensured that the narrative part of the submission is in
searchable PDF/MS Word format and data files are in MS Excel format.
24. The known producers/ exporters in the subject countries, the governments of the subject countries through their
embassies in India, the importers and users in India known to be concerned with the subject goods and the
domestic industry are being informed separately to enable them to file all the relevant information in the form
and manner prescribed within the time-limit set out below.
25. Any other interested party may also make its submissions relevant to the investigation in the prescribed form
and manner within the time-limit set out below.
26. Any party making any confidential submission before the Authority is required to make a non-confidential
version of the same available to the other interested parties.
27. Interested parties are further advised to keep a regular watch on the official website of the Designated
Authority http://www.dgtr.gov.in/ for any updated information with respect to this investigation.
N. Time limit
28. Any information relating to the present investigation should be sent to the Authority via email at the email
addresses [email protected] and [email protected] with a copy to [email protected] and [email protected]
within thirty days from the date of the receipt of the notice as per the Rule 6(4) of the Rules. It may, however,
be noted that in terms of explanation of the said Rules, the notice calling for information and other documents
shall be deemed to have received within one week from the date on which it was sent by the Authority or
transmitted to the appropriate diplomatic representative of the exporting countries. If no information is
received within the prescribed time-limit or the information received is incomplete, the Authority may record
its findings on the basis of the facts available on record in accordance with the Rules.
29. All the interested parties are hereby advised to intimate their interest (including the nature of interest) in the
instant matter and file their questionnaire responses within the above time limit.
O. Submission on information on confidential basis
30. Any party making any confidential submission or providing information on confidential basis before the
Authority, is required to simultaneously submit a non-confidential version of the same in terms of Rule 7(2) of
the Rules and the Trade Notices issued in this regard. Failure to adhere to the above may lead to rejection of
the response/ submissions.
31. The parties making any submission (including Appendices/ Annexures attached thereto), before the Authority
including questionnaire response, are required to file Confidential and Non-Confidential versions separately.
32. The "confidential” or “non-confidential” submissions must be clearly marked as “confidential" or "non-
confidential" at the top of each page. Any submission made without such marking shall be treated as non-
confidential by the Authority, and the Authority shall be at liberty to allow the other interested parties to
inspect such submissions.
33. The confidential version shall contain all information which is by nature confidential and/ or other information
which the supplier of such information claims as confidential. For information which is claimed to be
confidential by nature or the information on which confidentiality is claimed because of other reasons, the
supplier of the information is required to provide a good cause statement along with the supplied information
as to why such information cannot be disclosed.
34. The non-confidential version is required to be a replica of the confidential version with the confidential
information preferably indexed or blanked out (in case indexation is not feasible) and summarized depending
upon the information on which confidentiality is claimed. The non-confidential summary must be in sufficient
detail to permit a reasonable understanding of the substance of the information furnished on confidential basis.
However, in exceptional circumstances, the party submitting the confidential information may indicate that
such information is not susceptible to summary, and a sufficient and adequate explanation in terms of Rule 7
of the Rules, and appropriate trade notices issued by the Authority, as to why such summarization is not
possible must be provided to the satisfaction of the Authority.
35. The interested parties can offer their comments on the issues of confidentiality claimed by the domestic
industry within 7 days of the receipt of the non-confidential version of the documents in terms of para 32 of
this notification.
36. Any submission made without a meaningful non-confidential version thereof or without a sufficient and
adequate cause statement in terms of Rule 7 of the Anti-Dumping Duty Rules, 1995 and appropriate trade
notices issued by the Authority, on the confidentiality claim shall not be taken on record by the Authority.
37. The Authority may accept or reject the request for confidentiality on examination of the nature of the
information submitted. If the Authority is satisfied that the request for confidentiality is not warranted or if the
supplier of the information is either unwilling to make the information public or to authorize its disclosure in
generalized or summary form, it may disregard such information.
P. Inspection of public file
38. A list of registered interested parties will be uploaded on the DGTR's website along with the request therein to
all of them to email the non-confidential version of their submissions to all other interested parties. Failure to
circulate nonconfidential version of submissions/response/information might lead to consideration of an
interested party as non-cooperative.
Q. Non-cooperation
39. In case where an interested party refuses access to or otherwise does not provide necessary information within
a reasonable period, or significantly impedes the review investigation, the Authority may record its findings
on the basis of the facts available to it and make such recommendations to the Central Government as
deemed fit.
ANANT SWARUP, Jt. Secy. & Designated Authority
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
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