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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-01072024-255046
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 169]
NEW DELHI, SUNDAY, JUNE 30, 2024
DEPARTMENT OF COMMERCE
(Ministry of Commerce and Industry)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 29th June, 2024
Case No. AD (OI)-22/2024
Subject: Initiation of Anti-dumping investigation concerning imports of "Liquid Epoxy Resins" originating in
or exported from China PR, Korea RP, Saudi Arabia, Taiwan and Thailand.
F. No. 6/24/2024-DGTR.— M/s Atul Ltd. (“Atul”), and M/s Hindusthan Specialty Chemicals Ltd.
("HSCL") (collectively “applicants” or “domestic industry") have filed an application before the Designated
Authority ("Authority”), on behalf of the domestic industry, in accordance with the Customs Tariff Act, 1975,
as amended ("Customs Tariff 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 ("AD Rules"), for
initiation of an anti-dumping investigation concerning imports of "Liquid Epoxy Resins” (“subject goods" or
"product under consideration") originating in or exported from China PR, Korea RP, Saudi Arabia, Taiwan and
Thailand ("subject countries”).
2. The applicants have alleged that material injury is being caused to the domestic industry due to the
dumped imports, originating or exported from the subject countries and have requested for the
imposition of anti-dumping duties on the imports of the subject goods from the subject countries.
A. PRODUCT UNDER CONSIDERATION
3. The product under consideration in the present investigation is Liquid Epoxy Resins. Liquid epoxy resins are
recognized for their role as thermosetting resins, which, upon mixing with a hardening agent, form a material
renowned for its corrosion and chemical resistance, with strong adhesive properties.
4. Liquid epoxy resins are thermosetting polymers characterized by the presence of at least two epoxide groups,
which are fundamental to the structure and reactivity of epoxy resins. The main chemical reaction for
producing Liquid epoxy resins is the reaction between epichlorohydrin and bisphenol-A, in an alkaline
medium and under controlled temperature conditions. Liquid epoxy resins exhibit very good mechanical,
adhesive, dielectric, anti-corrosion & chemical resistive properties when combined with appropriate curing
agents.
5. Liquid epoxy resins can exist as low or high molecular weight pre-polymers. Due to the nature of its
polymerization process, liquid epoxy resins typically exhibits a range of chain lengths, although high purity
grades are attainable for specific applications, notably through distillation purification processes. Use of
blending, additives and fillers is often referred to as formulating. The product under consideration includes
all types and grades of liquid epoxy resins, encompassing various molecular weights, viscosities, and curing
times.
6. Liquid epoxy resins are widely used as protective coatings, adhesives, construction & civil engineering,
marine & underwater, electrical & electronics and composite applications.
7. The PUC is generally imported into India under HS Codes 3907.3010, and 3907.3090 of Schedule I of the
Customs Tariff Act, 1975. However, it is possible that the subject goods may also be imported under
other headings and therefore, the Customs tariff heading is indicative only and is not binding on the
scope of the product. Import data from the DG Systems database has been assessed for the above tariff
codes for the purposes of dumping and injury analyses.
8. The interested parties in the subject investigation may provide their comments on the PUC as well as their
proposal for their construction of PCNs, if any, within 30 days from the date of initiation of this
investigation.
B. LIKE ARTICLE
9. The applicants have claimed that the subject goods, which have been alleged to be dumped in India, are
identical to the goods produced by the domestic industry. There are no known differences in the
technical specifications, functions and end-use of the two products. The Authority notes that the two are
prima facie technically and commercially substitutable. Hence, for the purposes of the present
investigation, the Authority holds that the two should be treated as "like article" under the AD Rules.
Therefore, for the purpose of the present investigation, the subject goods produced by the applicants in
India are being treated as 'like articles' to the subject goods being imported from the subject country.
C. SUBJECT COUNTRIES
10. The subject countries in the present petition are China PR, Korea RP, Saudi Arabia, Taiwan and
Thailand.
D. PERIOD OF INVESTIGATION
11. The Authority has considered the period from January 1, 2023 – December 31, 2023 (12 Months) as the
period of investigation, i.e., the POI. The period of injury covers the periods from April 1, 2020 to March 31,
2021, April 1, 2021 to March 31, 2022, April 1, 2022 – March 31, 2023, and the POI.
E. DOMESTIC INDUSTRY AND STANDING
12. The application has been filed by Atul Ltd., and HSCL. The applicants have submitted that Grasim Industries
Limited ("Grasim") is the only other domestic producer besides the applicants. The applicants have claimed
that Grasim has imported the PUC in significant quantities from Aditya Birla Chemicals (Thailand) Co.,
Thailand, during the POI as well as during the injury period which is the sole producer of PUC in Thailand.
The applicants have further claimed that Grasim was considered as related to Aditya Birla Chemicals
(Thailand) Co., Ltd in the previous investigation concerning imports of certain epoxy resins.
13. In addition to the above, based on the information available from the DG Systems import data, the Authority
notes that the imports made by Grasim are substantial in volume in terms of total Indian demand and
production and imports from subject countries. The same is provided in the table below:
+----------+--------------------+-----------------------------+-------------------+--------------+-------------------+------------------+
| Year | Import Quantity | Total Demand (Excluding | Total Imports | % of the | % of Total | % of the |
| | (MT) | Captive) - MT) | - MT | Demand | Imports | Production |
+==========+====================+=============================+===================+==============+===================+==================+
| FY 2021-22| **** | **** | **** | 0-5% | 0-5% | 0-5% |
+----------+--------------------+-----------------------------+-------------------+--------------+-------------------+------------------+
| FY 2022-23| **** | **** | **** | 0-5% | 10-15% | 0-5% |
+----------+--------------------+-----------------------------+-------------------+--------------+-------------------+------------------+
| POI | **** | **** | **** | 0-5% | 15-20% | 0-5% |
+----------+--------------------+-----------------------------+-------------------+--------------+-------------------+------------------+
Source: DG Systems data
14. Based on the above, the Authority notes that Grasim is a regular importer of the PUC during the injury
period and has imported a significant quantity of PUC during the POI from the related party. In view of the
same, the Authority proposes to consider Grasim as an ineligible domestic producer under Rule 2(b) of the
AD Rules.
15. The applicants have submitted that they have not imported the subject goods during the POI. Further, the
applicants submitted that there is no other domestic producer of the subject goods in the POI or the injury
period.
16. From the information on record, it is seen that the applicants account for major production i.e., 100% of the
eligible domestic production of the like article in India. On the basis of the information available, the
Authority prima facie considers that the applicants constitute an eligible domestic industry within the
meaning of Rule 2(b), and the application satisfies the requirements of Rule 5(3) of the AD Rules.
F. BASIS OF ALLEGED DUMPING
A NORMAL VALUE
a) Normal value for China PR
17. The applicants have claimed that China PR should be treated as a non-market economy and therefore, the
Chinese producers should be called upon to show that market economy conditions prevail in the industry
producing the like product with regard to the production and sale of that product under consideration. Unless
the Chinese producers show that such market economy conditions prevail, their normal value should be
determined in accordance with Para 7 of Annexure – I to the AD Rules. Under Para 7, normal value for a
non-market economy country is required to be determined on the basis of prices of subject goods in the
market economy third county or price from such third country to other countries, including India, or on some
other reasonable basis including the price paid or payable in India.
18. The normal value, for the purpose of initiation of the investigation, has been constructed based on the cost of
production of the domestic industry of the subject goods, after duly adjusting the selling, general and
administrative expenses with reasonable profits.
b) Normal value for other subject countries
19. The applicants have submitted that it was not able to find evidence regarding the domestic selling price in the
other subject countries. Further, the applicants have submitted that the PUC does not have a dedicated tariff
classification. Therefore, it was not able to obtain export data from publicly available sources to be
considered as 'comparable representative export price of the subject goods from the subject countries to an
appropriate third country(ies).' In view of the same, the applicants have claimed normal value based on the
constructed price payable in the respective countries. Therefore, the applicants have constructed the normal
value based on the representation cost of manufacturing in the respective countries based on the consumption
norms of the domestic industry, duly adjusted with the selling, general, and administrative expenses and
reasonable profit.
B EXPORT PRICE
20. The applicants have adopted the CIF price reported as per imports into India as per market intelligence. The
information provided by the applicants has been compared with the DG Systems data. For the purpose of the
prima facie assessment, DG systems data has been adopted for ascertaining ex-factory export price. To
determine the ex-factory export price, the price has been adjusted with ocean freight, inland freight, handling
charges, ocean insurance, dealers commission, bank charges and credit cost. There is sufficient prima facie
evidence with respect to export price to justify the initiation of the investigation.
C DUMPING MARGIN
21. Considering the normal value and export price as elaborated above, the dumping margin has been
determined, in accordance with Section 9A(1)(a) of the Customs Tariff Act. It is seen that the dumping
margin is not only above the de minimis levels, but also significant
G. INJURY AND CAUSAL LINK
22. The information furnished by the applicants has been considered for assessment of injury to the
domestic industry. The applicants have furnished evidence regarding the injury suffered as a result of
the alleged dumping in the form of increased volume of dumped imports in absolute terms and in
relation to production or consumption in India, price undercutting and price suppressing and depressing
effect on the domestic industry. The applicants have claimed that its performance has been adversely
impacted in respect of profitability, return on investment, market share as a result of the increase in
imports of the PUC at an injurious price for the domestic industry. There is sufficient prima facie
evidence that the injury is being caused to the domestic industry by dumped imports from the subject
countries.
23. The applicants have also claimed that the imports are causing threat of material injury, considering
significant surplus capacities in subject countries, and price suppression.
H. INITIATION OF ANTI-DUMPING INVESTIGATION
24. On the basis of duly substantiated written application by the domestic industry, and having satisfied
itself, on the basis of the prima facie evidence submitted by the domestic industry pertaining to
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
accordance with Section 9A of the Customs Tariff Act read with Rule 5 of the AD Rules, the Authority,
hereby, initiates an investigation to determine the existence, degree and effect of any alleged dumping
in respect of the product under consideration 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
25. Principles, as stated under Rule 6 of the AD Rules, shall be followed in the present investigation.
J. SUBMISSION OF INFORMATION
26. In view of the special circumstances arising out of the COVID-19 pandemic, all communication should
be sent to the Designated Authority via email at email address [email protected], dir16-
[email protected], [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.
27. 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 known to be concerned with the
subject goods 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.
28. Any other interested party may also make its submissions relevant to the investigation in the form and
manner prescribed within the time limit set out below. Any party making any confidential submission
before the Authority is required to make a non-confidential version of the same available to the other
parties.
K. TIME LIMIT
29. Any information relating to the present investigation should be sent to the Designated Authority via
email at the following email addresses address [email protected], [email protected], adv16-
[email protected], and [email protected]._within 30 days from the date on which it was sent by the
Designated Authority or transmitted to the appropriate diplomatic representative of the exporting
country as per Rule 6(4) of the AD 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 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 AD Rules.
30. 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.
L. SUBMISSION OF INFORMATION ON A CONFIDENTIAL BASIS
31. 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 AD Rules. Failure to adhere to the above may lead to the rejection of the response I submissions.
32. 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.
33. 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.
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 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 not possible must be provided to the satisfaction of the Authority. The other interested
parties may offer their comments of the confidentiality claimed within 7 days of receiving the non-
confidential version of the documents.
35. 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.
36. Any submission made without a meaningful non-confidential version thereof or a good cause statement on the
confidentiality claim shall not be taken on record by the Authority.
M. INSPECTION OF PUBLIC FILE
37. A list of registered interested parties will be uploaded on 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 a non-confidential version of submissions/responses/information might lead to the consideration of
an interested party as non-cooperative.
N. NON-COOPERATION
38. In case any interested party refuses access to and otherwise does not provide necessary information within a
reasonable period, or significantly impedes the investigation, the Authority may declare such interested party
as non-cooperative and record its findings based on the facts available to it and make such recommendations
to the Central Government as deemed fit.
ANANT SWARUP, Designated Authority
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