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EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 163] NEW DELHI, FRIDAY, JUNE 30, 2023/ASHADHA 9, 194 5
CG-DL-E-01072023-246936
[email protected] jd16-dgtr@go v.in adv13 [email protected] , और adg16 [email protected] , और पर ई-मेल क े
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce )
(DIRECTORATE GENERAL OF TRADE REMEDIES )
INITIATION NOTIFICATION
New Delhi, the 30th June, 2023
Case No – AD(OI) – 05/2023
Subject: - Initiation of Anti -Dumping Investigation concerning imports of Isobutylene -Isoprene Rubber
(IIR) originating in or exported from China PR, Russia, Saudi Arabia, Singapore and the
United States of America.
F. No. 6/05/2023 -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 Det ermination of Injury) Rules, 1995 thereof, as amended from time
to time (hereinafter also referred to as the “Rules or AD Rules”), Reliance Sibur Elastomers Private Limited
(hereinafter referred to as the “applicant”) has filed an application before the De signated Authority (hereinafter
referred to as the “Authority”) for initiation of anti -dumping investigation concerning imports of “Isobutylene -
Isoprene Rubber” (hereinafter referred to as the “subject goods” or the “product under consideration” or “PUC” o r
“IIR”) originating in or exported from China PR, Russia, Saudi Arabia, Singapore and the United States of America
(hereinafter referred to as the “subject countries”).
2. The applicant has alleged that dumped imports of the subject goods originating in or e xported from the subject
countries has materially retarded the establishment of the domestic industry and has caused material injury to
the domestic industry. Accordingly, the applicant has requested for the imposition of anti -dumping duty on the
imports o f the subject goods from the subject countries. However, the Authority has prima facie considered
that dumped imports of the subject goods originating in or exported from the subject countries has caused
material injury to the domestic industry.
A. Product un der consideration
3. The product under consideration in the present investigation is Isobutylene -Isoprene Rubber (“IIR”) which is a
synthetic rubber, commonly used to manufacture inner tubes for tires and other high -pressure tubes. IIR has
applications in the tube and tyre inner liners, which form an integral part of the pneumatic tyre manufacturing
process. It is also used in diaphragms, gaskets, wire and cable insulations, liners, O -rings, seals, weather
stripping, and bottle closures.
4. The product under consideration is classified under Chapter 40, under tariff code 4002 31 00 of the First
Schedule to the Customs Tariff Act, 1975. The customs classification is only indicative and is not binding on
the scope of the present investigation.
5. The interested par ties in the subject investigation may provide their comments on the PUC as well as their
proposal for the construction of PCNs, if any, within 30 days from the date of initiation of this investigation.
B. Like article
6. The applicant has claimed that there are no known significant differences in the goods produced by the
domestic industry and that exported from the subject countries. Both the products have comparable
characteristics in terms of parameters such as physical & chemical characteristics, ma nufacturing process &
technology, functions & uses, product specifications, pricing, distribution & marketing and tariff classification.
The applicant claimed that the two are technically and commercially substitutable. Therefore, for the purpose
of the pr esent investigation, the subject goods produced by the applicant 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 Reli ance Sibur Elastomers Private Limited. The applicant has stated that it
has imported the product under consideration from the subject countries prior to the commencement of
commercial production as such imports were necessary to perform seed marketing acti vity prior to the
commercial launch of its production. However, no imports have been made post commencement of
commercial production.
8. The applicant has further stated that it is a joint venture between Reliance Industries Limited and Sibur
Investment AG. Sibur Investment AG is a 100% subsidiary of PJSC SIBUT Holding, which used to be a
100% holding company of SIBUR Togliatti, a producer of the product under consideration in Russia.
SIBUR also has a stake in PJSC Nizhnekamskneftekhim, a producer of the prod uct under consideration in
Russia. However, there are no direct exports of such producers to India. Exports, if any, have been made by
the traders. The applicant has claimed that Reliance Industries Limited holds majority shares and,
accordingly, exercises control over Reliance Sibur Elastomers Private Limited. Further, the applicant and
PJSC Nizhnekamskneftekhim cannot be considered related under Rule 2(b) since the two entities are not in a
position to legally or operationally control each other and are n ot controlled by a third entity, it should not
be considered related to any exporter or producer of the subject goods in the subject countries.
9. From the information on record, the Authority notes that Reliance Elastomers Private Limited is the sole
produc er of like article in India. The applicant accounts for a major proportion of the total domestic
production in India. In view of the above and after due examination, the Authority prima facie notes that the
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.
D. Normal value
Normal value for China PR
10. The applicant has claimed that China PR should be treated as a non -market economy and unless the Chine se
producers show that market economy conditions prevail, their normal value should be determined in terms
of Paragraph 7 of Annexure -I to the Rules. The normal value has been constructed based on the cost of
production in India, duly adjusted for selling, general and administrative expenses with reasonable profits.
Normal value for Russia, Saudi Arabia, Singapore and United States of America
11. The applicant has claimed that it was not able to find evidence regarding the domestic selling price in the
subject countries. Since most of the countries are net exporters of the subject goods with a very low volume of
imports, import prices cannot be relied upon. The applicant has, therefore, proposed to construct normal value
for Russia, Saudi Arabia, Singapore and the United States of America on the basis of the best available
information, having regard to the cost of production in India, duly adjusted for selling, general and
administrative expenses with reasonable profits.
The Authority has accepted the claim of the applicant in respect of the determination of normal value for the
subject countries for the purpose of initiation of this investigation.
E. Export price
Export price for China PR
12. The applicant has claimed that the export price for China PR reported in the DGCI&S data appears to suffer
from some inaccuracy and is significantly higher than the export prices for other countries. Accordingly, the
applicant has taken the FOB price reported in Trade Map data and adjusted for inland freight, port expenses,
bank c harges and commission to arrive at the ex -factory export price for China PR.
13. However, the Authority has considered the export price of the subject goods by considering CIF price of the
subject goods, as reported in the DGCI&S transaction -wise data. Price adjustments have been made on account
of ocean freight, marine insurance, commission, port expenses, inland freight, and bank charges to arrive at the
ex-factory export price.
Export price for Russia, Saudi Arabia, Singapore and United States of America
14. Export price of the subject goods from other subject countries has been determined by considering the CIF
price of the subject goods, as reported in the DGCI&S transaction wise data. Price adjustments have been made
on account of ocean freight, marine insura nce, commission, port expenses, inland freight, and bank charges to
arrive at an ex -factory export price.
F. Dumping margin
15. The normal value and export price have been compared at the ex -factory level. There is sufficient evidence
that the normal value of the subject goods in the subject countries is significantly higher than the ex -factory
export price indicating, prima facie , that the subject goods are being dumped by the exporters from the subject
countries into the Indian market and the dumping margin is a bove de-minimis so as to justify initiation of the
investigation.
G. Injury and Causal link
16. Information furnished by the applicant has been considered for assessment of injury to the domestic industry.
The applicant has claimed that the imports have materiall y retarded its establishment. However, the applicant
has also furnished its injury information over the injury period. The information concerning imports and
economic parameters of the domestic industry over the injury period show that the imports have pre vented
price increases, which otherwise would have occurred. The applicant has also claimed that it has been forced
to export in order to dispose of its production and has sold in the domestic market below its cost of sale. As a
result, the applicant has s old the subject goods at increasing losses and incurred cash losses and a negative
return on its capital employed. There is sufficient prima facie evidence of injury being caused to the domestic
industry by the dumped imports from the subject countries to justify the initiation of an anti -dumping
investigation.
H. Initiation of Anti -Dumping Investigation
17. On the basis of the duly substantiated application filed by or on behalf of the domestic industry, and having
satisfied itself, on the basis of the prima faci e evidence submitted by the applicant, substantiating dumping of
the product under consideration originating in or exported from the subject countries, injury to the domestic
industry and causal link between such alleged dumping and injury, and in accordan ce with Section 9A of the
Act read with Rule 5 of the Rules, the Authority, hereby, initiates an investigation to determine the existence,
degree and effect of any alleged 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. Subject countries
18. The subject countries for the present anti -dumping investigation are China PR, Russia, Saudi Ara bia, Singapore
and the United States of America.
J. Period of investigation
19. The applicant has provided information considering January – December 2022 as the period of investigation.
The applicant has provided data for the periods 2019 -20, 2020 -21, and 2021 -22, the proposed period of
investigation for the purpose of injury analysis. However, the period of investigation (POI) adopted by the
Authority for the present investigation is from 1st April 2022 to 31st March 2023 (12 months). The injury
analysis period covers the period of investigation and the three preceding financial years, 2019 -20, 2020 -21,
2021 -22 and the period of investigation.
K. Procedure
20. Principles, as given in Rule 6 of the Rules, will be followed for the present investigation.
L. Submission of In formation
21. In view of the special circumstances arising out of the COVID -I9 pandemic, all communication should be sent
to the Authority via email at the email addresses dd15 [email protected] , [email protected] adv13 [email protected] ,
adg16 [email protected] , and. It should be ensured that the narrati ve part of the submission is in searchable
PDF/MS Work format an d data files are in MS Excel format.
22. The known producers/exporters from the subject countries, their Governments through their Embassies in
India, the importers and users in India known to be concerned with the subject goods and the domestic
producers 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.
23. Any other interested party may also make its submissions relevant to the investigation in the form and man ner
prescribed within the time limit set out below on the email addresses mentioned hereinabove.
24. 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.
25. Interested parties are further advised to keep a regular watch on the official website of the Authority
http://www.dgtr.gov.in/ for any updated information with respect to this investigation.
M. Time Limit
26. Any information relating to the present investigation should be sent to the Authority via email at the email
addresses dd15 [email protected] , [email protected] adv13 [email protected] , and adg16 [email protected] within thirty
days (30 days) from the date of receipt of the notice as per Rule 6(4) of the Anti -Dumping 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 repres entative 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 finding on the basis of the facts available on records in accordance with the Rules.
27. 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.
N. Submission of information on confidenti al basis
28. Any party making any confidential submission or providing information on a 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 Notice s issued in this regard. Failure to adhere to the above may lead to rejection of
the response/submissions.
29. The parties making any submission (including Appendices/Annexures attached thereto), before the Authority,
including questionnaire response, are requ ired to file Confidential and Non -Confidential versions separately.
30. 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.
31. The confidential version shall contain all information which is by nature confidential and/or other in formation
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 requi red to provide a good cause statement along with the supplied information
as to why such information cannot be disclosed.
32. The non -confidential version is required to be a replica of the confidential version with the confidential
information preferably inde xed 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 th e 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 a summary, and a statement of reasons why summarization is no t
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 the receiving the non -confidential version of the
document.
33. 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 informat ion public or to authorize its disclosure in
generalized or in summary form, it may disregard such information.
34. Any submission made without a meaningful non -confidential version thereof or without a good cause
statement on the confidentiality claim shall n ot be taken on record by the Authority.
35. 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.
O. Inspection of Public File
36. 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 part ies. Failure to circulate a non -confidential version of submissions/response/information might
lead to the consideration of an interested party as non -cooperative.
P. Non-cooperation
In case where an interested party refuses access to, or otherwise does n ot 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.
37. 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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