Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-01042025-262184
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 103]
NEW DELHI, SUNDAY, MARCH 30, 2025/CHAITRA 9, 1947
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce )
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 29th March, 2025
Case No. - AD(SSR)-03/2025
Subject: Initiation of Sunset Review investigation concerning imports of Woven Fabric (having more than 50%
Flax content) commonly known as “Flax Fabric" from China PR and Hong Kong..
F. No. 7/05/2025-DGTR.—1. Whereas M/s Grasim Industries Limited-Jaya Shree Textiles (hereinafter
referred to as the "applicant") has filed an application before the Designated Authority (hereinafter referred to as the
Authority), on behalf of the domestic industry, in accordance with the Customs Tariff Act, 1975 as amended from
time to time (hereinafter referred 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 referred as the Rules), for Sunset Review of Anti-Dumping investigation concerning imports of "Woven
Fabric (having more than 50% Flax content)” commonly known as "Flax Fabric” (hereinafter referred as the “subject
goods" or "product under consideration"), originating in or exported from China PR & Hong Kong (hereinafter
referred to as the "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 INVESTIGATIONS
3. The original investigation concerning imports of the subject goods from China PR and Hong Kong was initiated
by the Authority vide Notification No. 14/8/2008- DGAD dated 3rd October 2008. The preliminary finding was
issued by the Authority on 17/02/2009, recommending provisional antidumping duty on the imports of Flax
Fabrics originating or exported from China PR & Hong Kong. The provisional duties were imposed vide
Customs Notification No. 30/2009-Customs dated 26th March, 2009. The Authority notified final findings vide
Notification No. 14/08/2008-DGAD dated 1st October, 2009 recommending definitive antidumping duty on
imports of Flax Fabrics from the subject countries. The definitive antidumping duty was imposed on the subject
goods vide Customs Notification No. 142/2009- Customs dated 21st December, 2009.
4. The Authority initiated 1st sunset review investigation vide Notification No.15/30/2013-DGAD dated 10th
March, 2014 and conducted the investigation. The Authority thereafter extended the definitive anti-dumping
duties vide Notification No.15/30/2013-DGAD dated 9th June 2015 on imports of Flax Fabric from China PR
and Hong Kong. The same was imposed vide Notification No. 39/2015-Customs/ dated 12th August, 2015.
5. Thereafter, Authority initiated 2nd sunset review investigation vide Notification No.7/26/2019-DGTR dated 23rd
December 2019 and conducted the investigation. The Authority thereafter extended the definitive anti-dumping
duties vide Notification No. 7/26/2019-DGTR dated 17th August 2020 on imports of Flax Fabric from China PR
and Hong Kong. The same was imposed vide Notification No. 35/2020-Customs (ADD) dated
10th November 2020.
B. PRODUCT UNDER CONSIDERATION
6. The product under consideration in the present investigation is same as defined in the original investigation
which is as follows:
"The product under consideration is “Flax Fabric" originating in or exported from China PR and Hong Kong
is normally classified under Chapter 53 of the Customs Tariff Act. “Flax” and “Linen” are synonyms and the
word flax is also known as Linen and can be used as in generic term to describe a class of woven bed, bathtub,
table and kitchen textiles because traditionally flax was widely used for towels, sheets etc. This product is
classified under Customs Tariff Chapter 53 at subheading 53.09. The Customs classification is indicative only
and not binding on the scope of investigation.
Woven fabric (having more than 50% flax contents) commonly known as “Flax Fabric” produced by the
domestic industry and those being imported from the subject countries are like articles and is the Product under
Consideration within the meaning of the rules”.
7. The Authority notes that as per the grade-wise production statement, the domestic industry has produced fabric
having flax content of 30-50%. This is 0.62% of the total production. As the domestic industry is not making
substantial production of fabric having flax content of up to 50%, the Authority has therefore concluded the
product under consideration to have flax content of more than 50%”
8. Since the current investigation is a Sunset Review investigation into anti-dumping duties currently in force, the
scope of the products under consideration is the same as that in the original investigation
C. LIKE ARTICLE
9. The subject goods are classifiable under Chapter 53 of the Customs Tariff Act, 1975 under sub-headings 5309.
The Applicant has stated that subject goods are being imported under sub-headings 5309. However, the custom
classification is indicative only and in no way binding on the scope of this investigation.
D. DOMESTIC INDUSTRY
10. The Application has been filed by M/s Grasim Industries Limited - Jaya Shree Textiles. The related party of the
applicant has imported insignificant quantity of the subject goods from the subject countries. The applicant is
not is related to any exporter or producer of subject goods in the subject countries.
11. The application is supported by Global Images (India) Pvt. Ltd., Govardhan Overseas Pvt. Ltd., Jagdamba
Textiles Private Limited, Raymond Luxury Cottons Ltd. and Sachdeva Fabric World Pvt. Ltd.
12. On the basis of information available, the Authority is satisfied that the Application has been made by or on
behalf of the domestic industry in terms of the provisions contained in Rule 2 (b) and Rule 5 (3) of the Rules,
even though the requirements of Rule 5(3) are not applicable in sunset review application.
E. SUBJECT COUNTRIES
13. The subject countries in the present investigation are China and Hong Kong.
F. CONTINUATION OF DUMPING AND DUMPING MARGIN
Normal Value for China
14. The Applicant has 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 Rule- 7 of Annexure I of the Rules.
15. 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 producer, duly adjusted for selling,
general, and administrative expenses with reasonable profits.
Normal Value for Hong Kong
16. The applicant has claimed that the data relating to price in Hong Kong is not available in the public domain.
17. Therefore, for the purpose of initiation, the normal value has been calculated based on the cost of production of
the applicant duly adjusted with selling, general and administrative expenses, along with a reasonable profit
margin. The Authority will further examine the evidence provided by the interested parties and the applicant for
the determination of normal value during the investigation.
Export price
18. The applicant has claimed CIF export price based on market intelligence. The Authority has computed the export
price for the subject countries based on the DG System transaction wise import data. Since the information is on
CIF basis, it has been adjusted for ocean height, marine insurance, commission, bank charges, port expenses and
inland freight expenses.
Dumping margin
19. Based on the normal value and the export price determined, as stated above, it is seen that the dumping margin
is positive and significant for China PR and Hong Kong. It is seen that the dumping of the subject goods has
continued.
G. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF INJURY AND CAUSAL LINK
20. The applicant has provided prima facie evidence with respect to the continued injury suffered by the domestic
industry because of the dumped imports. Import volume has increased significantly. The price undercutting from
the subject countries is positive. The price suppression caused by dumped imports have been preventing the
applicant from moving its prices to recover the full cost and achieve a reasonable rate of return. The applicant
is suffering from financial losses. The applicant has also claimed that there is a likelihood of further injury.
21. The information provided by the applicant, prima facie, shows likelihood of recurrence of dumping from the
subject countries and injury to the domestic industry in case of cessation of the anti-dumping duty.
H. INITIATION OF SUNSET REVIEW OF ANTI-DUMPING INVESTIGATION
22. On the basis of the duly substantiated application of the applicant, and 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.
I. PERIOD OF INVESTIGATION (POI)
23. The POI for the investigation is from Oct 2023 to Sept 2024 (12 months). The injury examination period covered
April 2021 - March 2022, April 2022 – March 2023, April 2023 – March 2024 and the proposed period of
investigation. The period of investigation is appropriate, as it is most recent, within 6 months from the date of
initiation.
J. PROCEDURE
24. The principles as stipulated under Rule 6 Rules shall be followed in the present investigation.
K. SUBMISSION OF INFORMATION
25. All communication should be sent to the Designated Authority via email at email addresses dd17-dgtr@gov.in
and dd16-dgtr@gov.in with a copy to adv13-dgtr@gov.in, consultant-dgtr@govcontractor.in and dgtr-
india@gov.in
26. It must be ensured that the narrative part of the submission is in searchable PDF/MS-Word format and data files
are in MS-Excel format.
27. The known producers/exporters in the subject countries, the government of the subject countries through its
embassy 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 the 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.
28. 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.
29. 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.
30. Interested parties are further directed to regularly visit the official website of the Directorate General of Trade
Remedies (https://www.dgtr.gov.in/) to stay update and apprised with the information as well as further
processed related to the investigation.
L. TIME LIMIT
31. Any information relating to the present investigation should be sent to the Designated Authority via email to
dd17-dgtr@gov.in and dd16-dgtr@gov.in with a copy to adv13-dgtr@gov.in, consultant-dgtr@govcontractor.in
and dgtr-india@gov.in within thirty (30) days from the date on which the non-confidential version of the
application 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 ADD Rules. It may,
however, be noted that in terms of explanation of the said Rule, the notice calling for information and other
documents shall be deemed to have been received within one week from the date on which it was sent by the
Designated Authority or transmitted to the appropriate diplomatic representative of the exporting country. If no
information is received within the prescribed 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.
32. 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 as stipulated in this notification.
33. 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 ADD Rules, 1995 and such request must come within the time
stipulated in this notification.
M. SUBMISSION OF INFORMATION ON CONFIDENTIAL BASIS
34. 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 8(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.
35. 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.
36. 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.
37. 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.
38. 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.
39. 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 8 of the Rules, 1995, 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.
40. The interested parties can offer their comments on the issues of confidentiality claimed by the domestic industry
within 07 days from the date of circulation of the non-confidential version of the documents in terms of
paragraph 31 of this initiation notification.
41. Any submission made without a meaningful non-confidential version thereof or a sufficient and adequate cause
statement in terms of Rule 8 of the Rules, and appropriate trade notices issued by the Authority, on the
confidentiality claim shall not be taken on record by the Authority.
42. The Authority may accept or reject the request for confidentiality on examination of the nature of the information
submitted. If the Authority is satisfied 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 in
summary form, it may disregard such information.
43. 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.
N. INSPECTION OF PUBLIC FILE
44. 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 non- confidential versions of submissions might lead to action under Section O of this initiation
notification.
O. NON-COOPERATION
45. In case any interested party refuses access to and otherwise does not provide necessary information within a
reasonable period or within the time stipulated by the Authority in this initiation notification or subsequently
time period provided through separate communication, or significantly impedes the investigation, the Authority
may declare such interested party as non-cooperative and record its findings based on the facts available and
make such recommendations to the Central Government as it deems fit.
DARPAN JAIN, Designated Authority
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