Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-02012025-259852
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 360]
NEW DELHI, TUESDAY, DECEMBER 31, 2024/PAUSA 10, 1946
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(Directorate (General of Trade Remedies)
INITIATION NOTIFICATION
New Delhi, the 31st December, 2024
Case No. – AD (AA) – 02/2023
Subject: Anti-absorption review investigation of anti-dumping duty imposed on imports of
'Untreated Fumed Silica' originating in or exported from China PR.
1. F. No. 7/25/2023-DGTR - 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 Determination of Injury) Rules,
1995, as amended from time to time (hereinafter also referred to as the "Rules" or the "Anti-
Dumping Rules"), Cabot Sanmar Limited (hereinafter referred to as the “applicant") has filed an
application before the Designated Authority (hereinafter referred to as the “Authority”) alleging
absorption of anti-dumping duty imposed on imports of "Untreated Fumed Silica" (hereinafter
referred to as the “subject goods” or “product under consideration") originating in or exported from
China PR (hereinafter referred to as “subject country") and produced by Shandong Dongyue Silicone
Material Co. Ltd. (hereinafter referred to as the “subject exporter").
2. In terms of Section 9A(1B) of the Act and Rule 29 (2) of the Rules, where an article subject to anti-
dumping duty is imported into India at such price or under such condition which is considered as
absorption of existing anti-dumping duty, which is thereby or may be rendered ineffective, the
Designated Authority may, after conducting review, recommend modification in the form or basis of
the duty and/or the quantum of anti-dumping duty after reassessing the dumping margin and injury
margin. In accordance with the same, the Authority is required to review, based on an application
made with sufficient evidence, by or on behalf of the domestic industry or any other interested party
as to whether the existing anti-dumping duty is thereby or may be rendered ineffective because of
absorption of duty.
A. Background
3. The anti-dumping investigation concerning imports of the Untreated Fumed Silica from China PR
and Korea RP was initiated vide notification dated 22nd September 2020. Vide final findings F No.
6/40/2020 dated 20th September 2021, the Authority recommended imposition of anti-dumping
measures on imports of the product for a period of 5 years. The Ministry of Finance, vide
Notification No. 66/2021-Customs (ADD) dated 11th November 2021, imposed anti-dumping duties.
The said duties are set to expire on 10th November 2026. Table below summarises the duty in force at
present.
+-----+-----------+---------------------------------------------------+----------------+
| SN | Country | Producer | Amount |
+=====+===========+===================================================+================+
| 1 | China PR | Shandong Dongyue Silicone Material Co., Ltd. | 1,018 $/MT |
+-----+-----------+---------------------------------------------------+----------------+
| 2 | China PR | Wacker Chemicals Fumed Silica (Zhangjiagang) Co. Ltd. | Nil |
+-----+-----------+---------------------------------------------------+----------------+
| 3 | China PR | Any other | 1,296 $/MT |
+-----+-----------+---------------------------------------------------+----------------+
| 4 | Korea RP | OCI Company Limited | Nil |
+-----+-----------+---------------------------------------------------+----------------+
| 5 | Korea RP | Any other | 373$/MT |
+-----+-----------+---------------------------------------------------+----------------+
B. Product under consideration.
4. The scope of product under consideration attracting the anti-dumping duties was specified as follows
in the final findings notified by the Authority:
3. The product under consideration in the application is “untreated fumed silica”. Synthetic
silica manufactured from a vapour phase flame hydrolysis of a silane compound, is popularly
known as fumed silica. This type of synthetic silica is different from other silica by its
functionality and manufacturing process and the raw materials needed. While other synthetic
silicas are made from silicate solution in a liquid phase, fumed silica is manufactured in a gas
phase at a very high temperature.
4. Fumed silica is classified as untreated fumed silica and treated fumed silica. Untreated
fumed silica is made by the flame hydrolysis of Chlorosilane feedstock in an oxygen hydrogen
flame at temperatures of 1800 deg C. This process allows production of the silica with unique
structure comprising of chain like aggregates and agglomerates.
5. Untreated fumed silica has a large specific surface area. Depending upon its surface area
values such as 150 or 200 or 300 or 380 m2/gm the untreated fumed silica is classified as
different grades suitable for different applications. The most popular grade is 200m2/gm, used
in variety of applications.
6. It is free-flowing powered product, used for wide applications. Untreated Fumed Silica
improves free flow properties in solid systems and used as free flow and tableting agent in
pharmaceuticals and an anti-caking agent in foods and agrochemicals. It is also used as a
carrier for liquid flavours and fragrances. Product concerned is solid in terms of net weight
expressed in terms of kg or MT.
7. Fumed Silica or Silicon di-oxide is classified under Chapter 28, subheading 28112200. The
untreated fumed silica being imported into India under different HS codes also under
subheading 28112190, 2839100 of Chapter 28 and 34049090 of Chapter 34 of the Customs
Tariff Act, 1975. Customs classification is only indicative in nature and not binding on the
scope of the investigation. "
5. Since the present application is anti-absorption review of anti-dumping duty in force, the scope of the
product under consideration remains the same as defined in the original investigation.
6. The original investigation revealed that there are no known significant differences in the goods
produced by the applicant and that exported from the subject country. Both products have
comparable characteristics in terms of parameters such as physical & chemical characteristics,
manufacturing process & technology, functions & uses, product specifications, pricing, distribution
& marketing and tariff classification. The two were found to be technically and commercially
substitutable. Therefore, for the purpose of present review, the subject goods produced by the
applicant is being treated as “like article” to the subject goods imported from the subject exporter.
C. Applicant.
7. The present application for initiation of anti-absorption review investigation has been filed by Cabot
Sanmar Limited. The applicant has claimed that it is the sole producer of the subject goods in India.
Further, the applicant has certified that it has not imported the subject goods nor is related to the
exporters from the subject country or importer in India. The applicant constitutes domestic industry
within the Rules.
D. Scope of review
8. The present anti-absorption review investigation is in respect of exports from China PR made by
Shandong Dongyue Silicone Material Co. Ltd. (hereinafter referred to as the “subject exporter").
E. Grounds for an absorption review investigation
9. The applicant has claimed that while the raw material and utility prices for the product under
consideration have increased after the imposition of anti-dumping duty, thus leading to an increase in
the cost of production, the import price from Shandong Dongyue Silicone Material Co. Ltd. has
declined.
10. The applicant has claimed that since exporter-wise prices of exports of the like article to third
countries are not available, the same has not been relied upon. In any case, the provisions of Rule
29(1) of the Anti-Dumping Rules require the decline in export price to be compared to a change in
the cost of production or export price to third countries or the resale price of the article in India.
Therefore, it is not necessary that the export price decline in relation to all three for absorption to be
established.
11. The applicant has given prima facie information showing an increase in the dumping margin and
injury margin. The information provided by the applicant, prima facie, shows a decline in the import
price without a commensurate decline in the cost of production, thus showing absorption of anti-
dumping duties and a consequent increase in the dumping and injury margin.
12. As per the provisions of Rule 29(3) of the Rules, any interested party may file an application seeking
initiation of anti-absorption review within two years from the date of imposition of definitive anti-
dumping duty. The proviso to the sub-rule provides that in view of special circumstances in a given
case, for reasons to be recorded in writing, the Designated Authority may accept an application for
such initiation after the expiry of the said period of two years.
13. The anti-dumping measures were imposed on 11th November 2021. The application seeking
initiation of the anti-absorption investigation was filed within two years from the date of imposition
of the anti-dumping duty i.e., in September 2023. However, the applicant later updated the period of
absorption.
F. Period of absorption.
14. The absorption period for the purpose of the present review has been considered as July 2023 to June
2024. The Authority shall compare the prices in such period to the prices in the period of
investigation of the original investigation.
G. Initiation of the anti-absorption review investigation
15. On the basis of the duly substantiated written application submitted by the applicant and having
satisfied itself based on the prima facie evidence submitted by the applicant concerning the
absorption of the anti-dumping duties imposed on the imports from China PR, the Authority, hereby,
initiates an anti-absorption review investigation to determine the existence and effect of the
absorption of the anti-dumping duty on imports of the product under consideration by Shandong
Dongyue Silicone Material Co. Ltd. and to recommend modification of the quantum or form of the
anti-dumping duty, in accordance with Section 9A(1B) of the Act and Rule 30 of the Rules.
H. Procedure
16. The scope of the present review investigation is limited only to the re-computation of dumping
margin and injury margin. The provisions as stipulated under Rules 29, 30 and 31 of the Rules shall
be followed in the present review investigation. The provisions of Rule 6 shall apply mutatis
mutandis.
I. Submission of information
17. All communication should be sent to the Designated Authority via email at email address dd15-
dgtr@gov.in and dd19-dgtr@gov.in with a copy to adv11-dgtr@gov.in and adg16-dgtr@gov.in. 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.
18. The known producer/ exporter in the subject country, the government of the subject country through
their 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 enable them to file all the relevant
information in the form and manner prescribed within the time-limit set out below.
19. Any other interested party may also make its submissions relevant to the review investigation in the
prescribed form and manner within the time-limit set out below.
20. 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.
21. Interested parties are further advised to keep a regular watch on the official website of the
Designated Authority http://www.dgtr.gov.in/ for any updated information with respect to this
review investigation.
J. Time limit
22. Any information relating to the present review investigation should be sent to the Authority via email
at the email addresses dd15-dgtr@gov.in and dd19-dgtr@gov.in with a copy to adv11-dgtr@gov.in
and adg16-dgtr@gov.in within thirty days from the date of the receipt of the notice as per the Rule
6(4) of the Rules. It may, however, be noted that in terms of explanation of the said Rules, 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 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 on the basis of the
facts available on record in accordance with the Rules.
23. 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.
K. Submission on information on a confidential basis
24. 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.
25. 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.
26. 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.
27. 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.
28. 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 confidential basis. However, in exceptional circumstances,
the party submitting the confidential information may indicate that such information is not
susceptible to summary, and a sufficient and adequate explanation in terms of Rule 7 of the Rules,
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.
29. The interested parties can offer their comments on the issues of confidentiality claimed by the other
interested parties within 7 days of the receipt of the non-confidential version of the documents.
30. Any submission made without a meaningful non-confidential version thereof or without a sufficient
and adequate cause statement in terms of Rule 7 of the Anti-Dumping Duty Rules, 1995 and
appropriate trade notices issued by the Authority, on the confidentiality claim shall not be taken on
record by the Authority.
31. 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.
L. Inspection of Public File
32. 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 a non-confidential version of submissions/response/information might
lead to the consideration of an interested party as non-cooperative.
Μ. Non-cooperation
33. In case where an interested party refuses access to or otherwise does not provide necessary
information within a reasonable period, or significantly impedes the review 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.
DARPAN JAIN, Designated Authority
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