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EXTRAORDINARY
PART I —Section 1
PUBLISHED BY AUTHORITY
No. 158] NEW DELHI, FRIDAY, JUNE 30, 2023/ASHADHA 9, 194 5
CG-DL-E-01072023-246909
MINISTRY OF COMMERCE AND INDUSTRY
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Del hi, the 30th June, 2023
Case no. AD SSR 04/2023
Subject : Initiation of sunset review investigation of anti -dumping duty on import of “Meta Phenylene Diamine
(MPDA)” originating in or exported from China PR.
F. No. 7/06/2023 -DGTR .—1. Having regards to the Cus toms 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 for Determination of Injury) Rules, 1995, as amended f rom time to time
(hereinafter also referred to as the ―Rules‖ or the ―Anti -Dumping Rules‖), M/s Aarti Industries Limited (hereinafter
referred to ―applicant‖ or ―domestic industry‖) has filed an application before the Designated Authority (hereinafter
also referred to as the ―Authority‖), for sunset review investigation of anti -dumping duty imposed on imports of ―Meta
Phenylene Diamine (MPDA)‖ (hereinafter referred to as ―product under consideration‖ or ―PUC‖ or ―subject goods‖),
originating in or exported from China PR (hereinafter referred to as the ―subject country‖).
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 the Authori ty is required to review whether
the expiry of the duty is likely to lead to continuation or recurrence of dumping and injury. In accordance with
the same, the Authority is required t o 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 the previous investigations
3. The origi nal anti -dumping investigation concerning imports of the subject goods from the subject country was
initiated by the Authority vide Notification No. 14/4/2012 -DGAD dated 19th June 2012 . In the same
investigation, final finding was issued vide No. 14/4/2012 -DGAD , dated 17th December 2013 confirming
imposition of definitive anti -dumping duties on imports of the subject goods from the subject country, which was
implemented vide Customs Notification No. 11/2014 – Customs (ADD) dated 11th March 2014 . The said du ties
were imposed for a period of 5 years following which the first sunset review investigation was initiated by the
Authority vide Notification No. 7/2/2018 -DGAD, dated 26th February 2018. In the same SSR investigation, final
finding was issued vide No. 7 /2/2018 -DGAD, dated 13th December 2018 confirming the extension and
enhancement of definitive anti -dumping duties on imports of the subject goods from the subject country,
implemented vide Customs Notification No. 5/2019 -Customs (ADD) dated 24th January 20 19. The duties so
imposed are set to expire on 23rd January 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:
“2. The product under co nsideration in the present investigation is „Meta Phenylene Diamine‟
(MPDA). Commercially, it is also called MPD or MPDA. Under normal (room) conditions, it is a
colourless or white colour solid, which tends to turn red, purple (dark colour) in air, on sto rage. Meta
Phenylene Diamine has two amino groups attached to a Benzene ring, at Meta position, with respect
to each other. It is an isomer of o - Phenylene Diamine (Ortho Phenylene Diamine) and p -Phenylene
Diamine (Para Phenylene Diamine). Meta Phenylene D iamine functions as a chemical intermediate.
MPDA as a chemical intermediate is used for manufacturing dyes, engineering polymer, aramid fiber
and in photography & medical applications.”
5. Meta Phenylene Diamine is classified under Chapter 29 (Organic Chemic als) of the Customs Tariff Act under
head 2921 and sub heading 29215120 .
6. The present investigation being a sunset review investigation, product under consideration remains the same
as defined in the previously conducted investigation.
C. Like Article
7. The appl icant has claimed that there is no difference in the product produced by the domestic industry and the
one exported from the subject country. The product produced by the domestic industry and imported from the
subject country are comparable in terms of cha racteristics such as physical & chemical characteristics,
manufacturing process & technology, functions & uses, product specifications, pricing, distribution & marketing,
and tariff classification of the goods. The Authority in the previous investigation h eld that the products being
manufactured by the domestic industry is like article to the product being imported into India from the subject
country. The present application is for review of the extension of original duty and since the product under
conside ration for the present and original investigation is same, it is prima facie considered that the subject good
produced by the domestic industry and the subject good imported from the subject country are "like article".
D. Domestic Industry and standing
8. The ap plication has been filed by M/s Aarti Industries Limited . There is one more producer, namely, M/s
Anupam Rasayan, which started manufacturing the subject goods in India since 2019 -20. M/s Anupam Rasayan
has supported the application and has provided inform ation on capacity, production, sales volume and value.
9. The production by the applicant constitutes ―a major proportion‖ of total Indian production. The applicant has
certified that they have neither imported the subject goods from the subject country nor are they related to any
exporter/producer from the subject country or importers in India. Further, the applicant alongwith the supporter
accounts for the total Indian production.
10. In view of the above and after due examination, the Authority notes that th e Applicant constitutes eligible
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 supra.
E. Subject country
11. The country involved in the present sunset review investigation is China PR.
F. Likelihood of continuation or recurrence of dumping
Normal Value
12. The applicant has cited and relied upon Article 15(a) (i) of China's Accession Protocol. The Applicant has
claimed that the producers in China PR must be asked to demonstrate that m arket economy conditions prevail in
the industry producing the subject goods with regard to the manufacture, production and sale of the product
under consideration. It has been stated by the applicant that in case the responding Chinese producers are not a ble
to demonstrate that their costs and price information are market driven, the normal value should be calculated in
terms of provisions of Para 7 of Annexure I to the Rules.
13. The applicant has submitted that India and China are the only producers of the s ubject goods and thus the normal
value could not be determined based on the price prevailing in market economy third country. The applicant has
determined the normal value based on price payable in India considering the cost of the domestic industry after
addition of reasonable profits.
14. The interested parties are advised to offer their comments and make duly substantiated claims with regard to
methodology to be adopted for determination of normal value, having regard to the provisions of Para 7 of
Annexure – I within the time limits prescribed in this notification.
Export Price
15. The applicant has determined export price using DGCI&S published data. The Authority has considered
transaction wise import data procured from DGCI&S. Price adjustments have been cla imed on account of ocean
freight, marine insurance, commission, bank charges, port expenses and inland freight to determine the ex -
factory export price.
Dumping Margin
16. Considering the normal value and the export price, the dumping margin is not only above de minimis level, but
also significant. There is prima facie evidence that the normal value of the subject goods in the subject country is
significantly higher than the net export prices, thereby indicating that the subject goods originating in or exported
from the subject country continues to be exported at dumped prices, inspite of anti -dumping duty in force.
G. Likelihood of continuation or recurrence of Injury
17. There is prima facie evidence of likelihood of dumping and consequent injury in the event of cess ation of duty,
considering the volume and value of import price from the subject country, positive dumping margin and injury
margin, performance of the domestic industry which has deteriorated, significant freely disposable capacities of
Chinese producers, high export orientation, capacity expansion by the Chinese producers, vulnerability of the
Indian industry. The information provided by the applicant, prima facie , show likelihood of dumping and injury
to the domestic industry in case of cessation of the anti-dumping duty.
H. Initiation of sunset review investigation
18. On the basis of the duly substantiated application by the domestic industry and having satisfied itself, on the basis
of the 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 f orce in
respect of the subject goods, originating in or exported from the subject country to examine whether the expiry of
existing anti -dumping duty is likely to lead to continuation or recurrence of dumping and injury to the domestic
industry.
I. Period of Investigation
19. The period of investigation (POI) proposed by the applicant is January 2022 - December 2022 (12 Months). The
Authority, however, considers the POI as 1st April 2022 to 31st March 2023 (12 months). The period 2019 -20,
2020 -21, 2021 -22 and the period of investigation has been proposed as the injury period. The injury investigation
period will cover the periods 2019 – 20, 2020 – 21, 2021 – 22 and the period of investigation. The data beyond
the period of investigation may also be examined to det ermine likelihood of dumping and injury.
J. Procedure
20. The present review investigation covers all aspects of the final findings published vide Notification No.
14/4/2012 -DGAD, dated 17th December 2018 and Notification No. 7/2/2018 - DGAD, dated 13th December 2 018.
The Authority will also undertake likelihood analysis of dumping and injury.
21. The provisions of Rules 6, 7, 8, 9, 10, 11, 16, 17, 18, 19 and 20 of the Rules supra shall be mutatis mutandis
applicable in this review.
K. Submission of Information
22. All commu nication should be sent to the Designated Authority via email at the email addresses adg13 -
[email protected] and adv11 [email protected] with copy to [email protected] and ad12 [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.
23. The known exporters in the subject country, the Government through its Embassy 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 enabl e them to file all the relevant information in the form and manner prescribed within the time -
limit set out below.
24. Any other interested party may also make its submissions relevant to the investigation in the prescribed form and
manner within the time limi t set out below on the email addresses mentioned in Para 22 above.
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 ar e further advised to keep a regular watch on the official website of the Designated Authority
https://www.dgtr.gov.in/ for any updated information with respect to this investigation.
L. Time Limit
27. Any information rela ting to the present investigation should be sent to the Designated Authority via email at the
email addresses adg13 [email protected] and adv11 [email protected] with copy to [email protected] and ad12 -
[email protected] within thirty (30) days from the date of receipt of the notice as per Rule 6(4) of the R ules. 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 tr ansmitted 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 on the basis of the facts avail able on record 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 matter and file their questionnaire responses within the above time limit.
M. Submission of information on confidential basis
29. 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.
30. The parties making any submission (including Appendices/Annexures attached thereto), before the Authority
including question naire response, are required to file Confidential and Non -Confidential versions separately.
31. The "confidential" or "non -confidential" submissions must be clearly marked as "confidential" or "non -
confidential" at the top of each page. Any submission made wit hout 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.
32. The confidential version shall contain all information which is by nature conf idential and/or other information
which the supplier of such information claims as confidential. For information which are 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.
33. 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 understandi ng 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 statement of reasons why summarization is not possible must be
provided to the satisfaction of the Authority. The other interested parties can offer their comments on the
confidentiality claimed within 7 days of receiving the non -confidential version of the document.
34. The Authorit y 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 ma ke the information public or to authorize its disclosure in generalized or
summary form, it may disregard such information.
35. Any submission made without a meaningful non -confidential version thereof or without good cause statement on
the confidentiality cla im shall not be taken on record by the Authority.
36. 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 informa tion.
N. Inspection of Public File
37. In terms of Rule 6(7) of the Rules, any interested party may inspect the public file containing non -confidential
version of the evidence submitted by other interested parties. The modality of maintaining public file in
electronic mode is being worked out.
O. Non-cooperation
38. 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.
ANANT SWARUP , Designated Authority
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