Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-02012025-259850
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 362]
NEW DELHI, TUESDAY, DECEMBER 31, 2024
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(Directorate General of Trade Remedies)
INITIATION NOTIFICATION
New Delhi, 31st December 2024
CASE No. AD (OI) – 49/2024
Subject: Initiation of anti-dumping investigation concerning imports of Sulphenamides
Accelerators originating and exported from China PR, European Union and United States of
America.
1. F. No. 6/52/2024-DGTR: Having regards to 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 to as the 'Rules'), NOCIL Limited
(hereinafter referred to as the 'applicant') has filed an application before the Designated Authority
(hereinafter referred to as the 'Authority'), for initiation of an anti-dumping investigation on
imports of Sulphenamides Accelerators (hereinafter referred to as the 'product under consideration'
or 'subject goods' or 'PUC') originating and exported from China PR, European Union and United
States of America (herein after referred to as "subject countries").
2. The applicant has alleged that material injury is being caused to the domestic industry due to the
dumped imports of the subject goods from the subject countries and has requested for the imposition
of the anti-dumping duties on the imports of the subject goods, originating in or exported from the
subject countries.
A. Product under consideration
3. The product under consideration in the present investigation is Sulphenamides Accelerators. Based
on eventual end applications, there are four different types of Sulphenamides accelerators produced
in India which are as listed below: -
a. CBS - N-cyclohexyl-2-benzothiazolesulfenamide
b. NS - N-tert-butyl-2-benzothiazole sulfenamides
с. DCBS - N, N'-Dicyclohexyl-2-benzothiazole sulfenamides
d. MOR - N-oxydiethylene-2-benzothiazole sulphenamides
4. The scope of the product under consideration excludes MOR and DCBS Sulphenamides
Accelerators. The scope of the product under consideration only includes CBS and NS form of the
product under consideration.
5. Sulphenamide accelerators are the reaction products of Mercapto benzothiazole with an amines, such
as cyclohexylamine, tertiary-butylamine and Di cyclohexylamine. Mercapto-benzothiazole is the
major raw material required for production of different types of Sulphenamides Accelerators.
6. The product under consideration is classified under chapter 38 of the Customs Tariff Act, 1975 under
sub-heading 3812 of the Tariff classification under the HS code 3812 10 00. The applicant has stated
that product is imported in the following HS codes: - 29215190, 29303000, 29319090, 29342000,
38121000, 38123100 and 38123990. The customs classification is indicative only and is not binding
on the scope of the product under consideration.
7. The applicant has proposed CBS and NS as two different PCNs.
8. The parties to the present investigation may provide their comments on the product under
consideration and propose PCNs (with justification), if any, within 15 days of circulation of the
receipt of intimation of initiation of the investigation. Submissions made without justification will
not be considered by the Authority.
B. Like article
9. The applicant has submitted that there are no significant differences in the product produced by the
applicant and those exported from the subject countries, and both are like articles. The product
produced by the applicant and those imported from the subject countries are comparable in terms of
essential product characteristics such as physical and chemical characteristics, manufacturing process
& technology, functions & usage, product specifications, pricing, distribution & marketing and tariff
classification of the goods. Consumers can use and have been using the two interchangeably. The
two are technically and commercially substitutable, and hence, should be treated as 'like article'
under the Rules. Thus, for the purposes of initiation of the present investigation, the product
produced by the applicant has been prima facie considered as like article to the product being
imported from the subject countries.
C. Domestic industry & standing
10. The applicant has been filed by NOCIL Limited. The applicant has certified that it is not related to an
exporter or producer of the subject goods in the subject countries or an importer in India either
directly or indirectly within the meaning of Rule 2(b) the Rules. The applicant has not imported the
product under consideration. There is another producer of the product in India – Finorchem Limited.
The Authority had sent an intimation to the producer about the receipt of the application. The
producer has supported the present investigation.
11. As per the evidence available on record, it is seen that the production of the applicant accounts for a
major proportion in the domestic production of the like article in India. Therefore, the applicant
constitutes 'domestic industry' within the meaning of Rule 2(b) of the Rules, and the application
satisfies the criteria of standing in terms of Rule 5(3) of the Rules.
D. Subject countries(ies)
12. The subject countries in the present investigation are China PR, European Union and United States
of America.
Ε. Period of investigation
13. The period of investigation proposed by the applicant was 1st April 2023 – 31st March 2024 (12
months). The injury examination period covered the period April 2020 – March 2021, April 2021 –
March 2022, April 2022 – March 2023 and the period of investigation.
14. The Authority has considered the period of investigation as 1st April 2023 to 30th June 2024 (which
is a 15-month period). The period of investigation is appropriate, as it is most recent, within 6
months from the date of initiation, and includes a complete year of financial accounting period of the
domestic industry. Further, the period considered will not lead to any skewed analysis. The injury
examination period covers the period April 2020 – March 2021, April 2021 – March 2022, April
2022 - March 2023 and 1st April 2023 to 30th June 2024.
F. Basis of alleged dumping
Normal value for China PR
15. The applicant has cited and relied upon Article 15(a) (i) of China's Accession Protocol and has
claimed that China PR should be treated as a non-market economy and that producers from China PR
should be directed to demonstrate that market economy conditions prevail in the industry with regard
to the production and sales of the product under consideration. Unless the producers from China PR
show that such market economy conditions prevail, their normal value should be determined in
accordance with Para 7 and 8 of Annexure-I to the Anti-Dumping Rules, 1995.
16. The applicant has submitted that data relating to cost and price in market economy third country is
not available. With regard to the price at which the product under consideration have been sold from
the market economy third country to any other country, including India, the applicant has submitted
that the product under consideration has a dedicated code in India, but it does not have a dedicated
code globally and therefore, export price cannot be considered. Therefore, the applicant has claimed
normal value based on its export price to third country. For initiation, the normal value has been
determined based on price paid or payable in India, adjusted to include a reasonable profit margin.
The interested parties may offer their comments on the methodology proposed by the applicant.
Normal value for European Union and United States of America
17. The applicant has considered its export price to these countries as a basis for normal value. For
initiation, the normal value has been determined based on cost of production in India, adjusted to
include a reasonable profit margin. The interested parties may offer their comments on the
methodology proposed by the applicant.
Export price
18. The export price of the product under consideration has been determined by considering the CIF
price of the product under consideration as reported in DGCI&S transaction wise data. Adjustments
have been claimed for ocean freight, marine insurance, commission, bank charges, port expenses and
inland freight expenses.
Dumping margin
19. The normal value and the export price have been compared at the ex-factory level, which prima facie
establishes that the dumping margin with respect to the product under consideration imported from
the subject countries is not only above the de minimis level but is also significant. Thus, there is
sufficient prima facie evidence that the product under consideration is being dumped in the domestic
market of India by the exporters from the subject countries.
G. Evidence of injury and causal link
20. Information furnished by the applicant has been considered for assessment of injury to the domestic
industry. The applicant has furnished prima facie evidence with respect to the injury suffered
because of the alleged dumped imports. There is positive price undercutting and price suppression
effect on the prices of the applicant. The applicant is suffering financially with financial losses and
negative return on capital employed. The performance of the applicant in the period of investigation
has been adverse in price parameters. The import volume has increased. Dumping of the product has
prevented the applicant from achieving the desired level of operations. There is sufficient prima facie
evidence of injury being caused to the domestic industry by dumped imports of subject goods from
the subject countries.
H. Initiation of anti-dumping investigation
21. On the basis of the duly substantiated written application submitted by the applicant and having
reached satisfaction based on the prima facie evidence submitted by the applicant concerning the
dumping of the product under consideration originating in or exported from the subject countries, the
consequential injury to the domestic industry as a result of the alleged dumping of the product under
consideration and the causal link between such injury and the dumped imports, and in accordance
with Section 9A of the Act read with Rule 5 of the AD Rules, the Authority, hereby, initiates an anti-
dumping investigation to determine the existence, degree, and effect of the dumping with respect to
the product under consideration originating in or exported from the subject countries and to
recommend the appropriate amount of anti-dumping duty, which if levied, would be adequate to
remove the injury to the domestic industry.
I. Procedure
22. The provisions stipulated in Rule 6 of the Anti-Dumping Rules shall be followed in this investigation.
J. Submission of information
23. All communication should be sent to the Designated Authority via email at email addresses dir14-
dgtr@gov.in and jd12-dgtr@gov.in with a copy to adv13-dgtr@gov.in and consultant-
dgtr@govcontractor.in. 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.
24. 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 product under consideration 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.
25. 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.
26. 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.
27. 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 updated and apprised with the information as
well as further processes related to the investigation.
K. Time limit
28. Any information relating to the present investigation should be sent to the Designated Authority via
email at the following email addresses dir14-dgtr@gov.in and jd12-dgtr@gov.in with a copy to
adv13-dgtr@gov.in and consultant-dgtr@govcontractor.in. within 30 days from the date on which
the non-confidential version of the documents filed by the applicant would be circulated by the
Designated Authority or transmitted to the appropriate diplomatic representative of the exporting
country 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.
29. 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.
30. 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, 1995 and such request
must come within the time stipulated in this notification.
L. Submission of information on confidential basis
31. 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.
32. 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.
33. 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 provide a good cause
statement along with the supplied information as to why such information cannot be disclosed.
34. 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.
35. 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 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.
36. The interested parties can offer their comments on the issues of confidentiality within 7 days from
the date of circulation of the non-confidential version of the documents.
37. 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.
38. 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.
39. The Authority on being satisfied and accepting the need for confidentiality of the information
provided, shall not disclose it to any party without specific authorisation of the party providing such
information.
Μ. Inspection of public file
40. 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.
Ν. Non-cooperation
41. 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 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