Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-01012025-259776
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 347]
NEW DELHI,THURSDAY, DECEMBER 26, 2024/PAUSHA 5, 1946
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(Directorate General of Trade Remedies)
INITIATION NOTIFICATION
New Delhi,the 26th December, 2024
Case No – AD(OI) – 45/2024
Subject: - Anti-Dumping Investigation concerning imports of Nylon Filament Yarn originating in or
exported from China PR and Vietnam.
F. No. 6/48/2024-DGTR. Century Enka Private Limited, Gujarat Polyfilms Private Limited and Oriilon
India Private Limited (hereinafter referred to as the “applicants") have filed an application before the
Designated Authority (hereinafter also referred to as the “Authority”), in accordance with 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 thereof, as amended from time to time (hereinafter also
referred to as the "Rules or AD Rules"), for the initiation of anti-dumping investigation concerning
imports of "Nylon Filament Yarn" (hereinafter also referred to as the "subject goods" or "product
under consideration” or “NFY") originating in or exported from China PR and Vietnam (hereinafter
also referred to as the "subject countries").
The applicants have alleged that dumping of imports of the subject goods originating in or exported
from the subject countries has caused material injury to the domestic industry. Accordingly, the
applicants have requested for imposition of anti-dumping duty on the imports of the subject goods
from the subject countries.
A. PRODUCT UNDER CONSIDERATION
1. The product under consideration is "Synthetic Filament Yarn" made of Nylon also known as
polyamide yarns or Nylon Filament Yarn. Nylon Filament Yarn is a synthetic filament yarn produced
by polymerization of organic monomers. The product under consideration is multi-filament yarn.
The product under consideration includes Mother Yarn, Fully Drawn Yarn, Partially Oriented Yarn,
Draw Textured Yarn or Crimp Yarn, Air Textured Yarn, Air Covered Yarn, High Oriented Yarn and
High Tenacity Yarn. All man-made filament yarns not having nylon or polyamides are excluded
from the scope of the product under consideration. The following are specifically excluded from the
scope of the product under consideration.
a. Mono filament yarn
b. Bulk Continuous Fiber
c. Nylon 66 yarn
d. Hot melt yarn
e. Low melt yarn
f. Bonded yarn
g. Conductive yarn
h. Anti-static yarn
i. Nomex and aramids yarn
2. The product under consideration includes all kinds of synthetic filament yarns of Nylon or
Polyamides, such as flat yarn - twisted and/or untwisted, fully drawn yarn (FDY), spin drawn yarn
(SDY), fully oriented yarn (FOY), high oriented yarn (HOY), partially oriented yarn (POY), textured
yarn - twisted and/or untwisted, and dyed yarn, single, double, multiple, folded or cabled, and high
tenacity yarn of nylon classifiable within Chapter 54 under Customs heading 5402. The product
includes all variants of Nylon Filament Yarn or Polyamide Yarns such as flat/ textured/ twisted/
untwisted, bright/semi-dull/full-dull (or variants thereof), grey/ colored/ dyed (or variants thereof),
single/double/ multiple/folded/cabled (or variants thereof), whether or not sized.
3. The product under consideration is used in a variety of apparel and textile applications such as
sarees, dupatta, dresses, swim wear and activewear; as well as in carpets and upholstery. It is also
used in certain industrial applications such as ropes, cables, belts, seat covers and airbags. The
product under consideration is used for its strength, softness, stretchability, brightness, lightness,
moisture absorption, drape and easy dye-ability. On account of its superior durability, it is used in
outdoor gears and high-strength fishing lines, nets and ropes.
4. The subject goods are classified under Chapter 54 of the Customs Tariff Act under the heading 5402.
The subject goods are being imported under a number of codes, including 5402 19 10, 5402 19 90,
5402 31 00, 5402 32 00, 5402 45 00, 5402 51 00, 5402 61 00. Additionally, the product has also
been imported under the classification item 5402 19 20. The applicants have claimed that the
products have no dedicated HS Code and the subject goods can also be imported under other HS
codes falling under the heading 5402. The Authority has considered HS Codes at 4-digit level for the
purpose of the present investigation. The customs classification is only indicative and is not binding
on the scope of the product under consideration.
5. The parties to the present investigation may provide their comments on the scope of PUC and
propose PCNs, if any, within 15 days from the date of initiation of this investigation.
B. LIKE ARTICLE
6. The applicants have submitted that, the subject goods exported from the subject countries are
identical to the goods produced by the domestic industry. The subject goods produced by the
domestic industry have comparable characteristics to the subject goods imported from the subject
countries in terms of technical specifications, physical & chemical characteristics, manufacturing
process & technology, functions & uses, pricing, distribution & marketing and tariff classification.
The two are technically and commercially substitutable. Therefore, for the purpose of initiation of
the present investigation, the subject goods produced by the applicants are being treated as 'like
article', to the subject goods originating in or exported from the subject countries.
C. DOMESTIC INDUSTRY AND STANDING
7. The application has been filed by Century Enka Private Limited, Gujarat Polyfilms Private Limited
and Oriilon India Private Limited. Apart from the applicants there are other domestic producers
engaged in production of like article. Four domestic producers, namely, Aglon Industries Private
Limited, AYM Syntex Limited, Salasar Polyplex Private Limited and Todi Rayons Private Limited,
have filed letters supporting the application filed by the applicants.
8. The applicants have submitted that they are not related to any exporters in the subject countries or
importers of the subject goods in India. Two of the applicants, namely Century Enka Private
Limited and Oriilon India Private Limited, have imported the subject goods from the subject
countries during the period of investigation. The imports made by the applicants are negligible in
relation to their production and domestic sales. In view of the same, the Authority finds that the
applicants cannot be treated as ineligible to constitute domestic industry.
9. In view of the above and after examination of the application filed by the applicants, the Authority
notes that the applicants account for 37% of the total domestic production in India and along with
supporters account for 62% of the total domestic production in India Thus, the Authority notes that
the applicants account for major proportion of the total domestic production and constitutes
domestic industry in terms of Rule 2(b) and the application satisfies the criteria of standing in
terms of Rule 5(3) of the Rules.
D. SUBJECT COUNTRIES
10. The subject countries for the present anti-dumping investigation are China PR and Vietnam.
Ε. PERIOD OF INVESTIGATION
11. The applicants have proposed that a period 1st April 2023 to 30th June 2024 as the period of
investigation. The applicants have submitted that a 15 months period of investigation is appropriate
for the purpose of the present investigation, as it would allow inclusion of one full accounting year
and as well as the most recent period. It has been further submitted that the consideration of July
2023 June 2024 as period of investigation would result in significant practical difficulties for
preparation of the costing data, as it would require culling information for two separate financial
years. The applicants have claimed that majority of them are relatively small companies having
limited resources. Preparation of information by extracting and collating information from two
separate financial years would become unduly onerous for the applicants.
12. In view of the above, the period of investigation considered appropriate for the purpose of the present
investigation is 1st April 2023 to 30th June 2024 (15 months). The injury analysis period covers the
period of investigation and the three preceding financial years that is, 1st April 2020 – 31st March
2021, 1st April 2021 – 31st March 2022, 1st April 2022 – 31st March 2023 and the period of
investigation.
F. BASIS OF ALLEGED DUMPING
Normal value for China PR
13. The applicants have claimed that China PR should be treated as a non-market economy and the
producers from China PR should be directed to demonstrate that market economy conditions
prevail in the industry with regard to production and sales of the subject goods. Unless the Chinese
producers show that market economy conditions prevail, their normal value should be determined
in terms of Paragraph 7 of Annexure-I to the Rules.
14. Therefore, for the purpose of the present initiation, the Authority has considered China PR to be a
non-market economy and determined normal value for China PR based on price payable in India.
The normal value has been constructed based on estimated cost of production of the applicant
domestic producers, duly adjusted for selling, general and administrative expenses with reasonable
profits.
Normal value for Vietnam
15. The applicants have claimed that they did not have access to any evidence of domestic selling prices
or actual cost of production in Vietnam. Thus, the applicants have determined the cost of production
based on information available. The applicants have adopted the price of raw material (caprolactam)
prevailing in Vietnam, based on imports into Vietnam and prices of power in Vietnam as per publicly
available sources, relying on conversion costs and applicable consumption norms of the domestic
industry. An addition has been made towards selling, general and administrative expenses and
reasonable profits.
16. For the purpose of initiation, the Authority has considered the normal value as determined by the
applicants.
Export price
17. The export price of the subject goods has been determined by considering CIF price of the subject
goods, as reported in the DG Systems data. Price adjustments have been made on account of ocean
freight, marine insurance, commission, port expenses, handling charges and bank charges to arrive at
ex-factory export price.
Dumping margin
18. The normal value and the export price of the subject goods have been compared at the ex-factory
level, which prima facie shows that dumping margin is above the de-minimis level and is significant
in respect of product under consideration from the subject countries. Thus, there is sufficient prima
facie evidence that the product under consideration from the subject countries is being dumped in the
Indian market by the exporters from the subject countries.
G. INJURY AND CAUSAL LINK
19. Information furnished by the applicants have been considered for assessment of injury to the
domestic industry. The applicants have furnished prima facie evidence establishing that that the
imports have caused material injury to the domestic industry. The applicants have claimed that the
volume of imports has increased in absolute terms as well as in relation to production and
consumption in India. The imports are undercutting the prices of the domestic industry. The imports
have depressed the prices of the domestic industry, and have prevented price increases, which
otherwise would have occurred. The domestic industry has been forced to sell at losses in order to
compete with the low import prices and to maintain its market share. This has adversely impacted the
profitability of the domestic industry which has deteriorated in the injury period. Despite selling at
losses, the domestic industry has accumulated inventories. There is sufficient prima facie evidence of
material injury being caused to the domestic industry due to the dumped imports from the subject
countries to justify initiation of anti-dumping investigation.
H. INITIATION OF ANTI-DUMPING INVESTIGATION
20. On the basis of the duly substantiated application filed by the applicants, and having satisfied itself,
on the basis of the prima facie evidence submitted by the applicants, substantiating dumping of the
product under consideration originating in or exported from the subject countries, the consequential
injury to the domestic industry and causal link between such alleged dumping and injury, and in
accordance with Section 9A of the Act read with Rule 5 of the Rules, the Authority, hereby, initiates
an anti-dumping investigation to determine the existence, degree and effect of dumping in respect of
the subject goods originating in or exported from the subject countries and to recommend the amount
of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic
industry.
I. PROCEDURE
21. Principles as given in Rule 6 of the Rules will be followed for the present investigation.
J. SUBMISSION OF INFORMATION
22. All communication should be sent to the Authority via email at the email addresses adg16-
dgtr@gov.in ; adv11-dgtr@gov.in ; jd11-dgtr@gov.in and dd19-dgtr@gov.in. It should be ensured
that the narrative part of the submission is in searchable PDF/MS Work format and data files are in
MS Excel format.
23. The known producers/exporters in the subject countries, the Governments of the subject countries
through their embassies in India, and the importers and users in India who are known to be
associated with the subject goods are being informed separately to enable them to file all relevant
information within the time limits mentioned in this initiation notification. All such information must
be filed in the form and manner as prescribed by this initiation notification, the Rules, and the
applicable trade notices issued by the Authority.
24. Any other interested party may also make a submission relevant to the present investigation in the
form and manner as prescribed by this initiation notification, the Rules, and the applicable trade
notices issued by the Authority within the time limits mentioned in this initiation notification.
25. 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.
26. Interested parties are further advised to keep a regular watch on the official website of the
Directorate General of Trade Remedies (http://www.dgtr.gov.in/) for any updated information with
respect to this investigation as well as further processes related to the investigation.
K. TIME LIMIT
27. Any information relating to the present investigation should be sent to the Authority via email at the
email addresses adg16-dgtr@gov.in ; adv11-dgtr@gov.in ; jd11-dgtr@gov.in and dd19-dgtr@gov.in
within thirty days (30 days) from the date on which the non-confidential version of the documents
filed by the domestic industry would be circulated by the Designated Authority or transmitted to the
appropriate diplomatic representative of the exporting countries as per Rule 6(4) of the Rules. If no
information is received within the stipulated time limit or the information received is incomplete, the
Authority may record its findings based on the facts available on record and in accordance with the
Rules.
28. All the interested parties are hereby advised to intimate their interest (including the nature of interest)
in the instant investigation and file their questionnaire response/submissions within the above time
limit.
29. Where an interested party seeks additional time for filing of submissions, it must demonstrate
sufficient cause for such extension in terms of Rule 6(4) of the AD Rules and such request must
come within the time stipulated in this notification.
L. SUBMISSION OF INFORMATION ON CONFIDENTIAL BASIS
30. Where any party to the present investigation makes confidential submissions or provides information
on a confidential basis before the Authority, such party is required to simultaneously submit a non-
confidential version of such information in terms of Rule 7(2) of the Rules and in accordance with
the relevant trade notices issued by the Authority in this regard.
31. Such submissions must be clearly marked as "confidential" or "non-confidential" at the top of each
page. Any submission that has been made to the Authority without such markings shall be treated as
"non-confidential" information by the Authority, and the Authority shall be at liberty to allow other
interested parties to inspect such submissions.
32. 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 the 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 show a good cause along with
the supplied information as to why such information cannot be disclosed.
33. The non-confidential version of the information filed by the interested parties should be a replica of
the confidential version with the confidential information preferably indexed or blanked out, where
indexation is not possible, and such information must be appropriately and adequately summarized
depending upon the information on which confidentiality is claimed.
34. The non-confidential summary must be in sufficient detail to permit a reasonable understanding of
the substance of the information furnished on a confidential basis However, in exceptional
circumstances, the party submitting the confidential information may indicate that such information
is not susceptible to summary, and a statement of reasons containing a sufficient and adequate
explanation in terms of Rule 7 of the AD 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 in the
submissions, within seven days (7 days) from the date of circulation of the non-confidential version
of the documents in terms of relevant paragraph of this initiation notification.
36. Any submission made without a meaningful non-confidential version thereof or a sufficient and
adequate cause statement in terms of Rule 7 of the Rules, 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 not satisfied that the request for confidentiality is
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.
38. The Authority on being satisfied and accepting the need for confidentiality of the information
provided, shall not disclose it to any party without specific authorization of the party providing such
information.
M. INSPECTION OF PUBLIC FILE
39. 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/response/information
to all other interested parties. Failure to circulate non-confidential version of
submissions/response/information might lead to consideration of an interested party as non-
cooperative.
Ν. NON-COOPERATION
40. In case where an interested party refuses access to, or 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 Government as deemed fit.
DARPAN JAIN, Designated Authority