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Core Purpose

Initiation notification by the Directorate General of Trade Remedies commencing an anti-dumping investigation, Case No. AD(OI)-12/2024, into imports of T-Shaped Elevator/Lift Guide Rails and Counterweight Guide Rails originating in or exported from China PR.

Detailed Summary

The Ministry of Commerce and Industry, Department of Commerce, Directorate General of Trade Remedies (DGTR), by initiation notification dated 29th June 2024 (F. No. 6/14/2024-DGTR, Case No. AD(OI)-12/2024), under Section 9A of the Customs Tariff Act, 1975 read with Rule 5 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (AD Rules), initiated an anti-dumping investigation into imports of T-Shaped Elevator/Lift Guide Rails and Counterweight Guide Rails (Solid and Hollow types, classifiable under Chapter 84, tariff heading 8431, tariff items 8431 31 00, 8431 39 10 and 8431 39 00, excluding cold-drawn, large-size (T114/B, T127/B, T125/B, T140/B) and welded hollow guide rails) originating in or exported from China PR, following an application by petitioner Savera India Riding Systems Company Private Limited, which the Authority determined prima facie constitutes the domestic industry under Rule 2(b), accounting for 89% of Indian production alone and 95% together with supporter N. Liftee Engineers (a third domestic producer, Nav Durga Steel Corporation, was also identified), satisfying standing under Rule 5(3) of the AD Rules; the period of investigation is 1st January 2023 to 31st December 2023, with an injury examination period spanning 1st April 2020 to the end of the POI covering four annual periods; normal value for Chinese producers is proposed to be constructed under Paragraphs 7 and 8 of Annexure I to the AD Rules based on estimated Indian costs of production, given the market-economy status question under Article 15(a)(i) of China's WTO Accession Protocol, and export price is based on CIF prices from DG Systems data adjusted for freight, insurance and other charges, with the resulting dumping margin found to be above the de-minimis level; the notification cites evidence of increased import volumes, price undercutting and depression, and injury to the domestic industry's capacity utilization, market share, sales and profitability, and directs interested parties to submit information under Rule 6 of the AD Rules within 30 days to the Designated Authority via email at [email protected] and [email protected] with copy to [email protected] and [email protected].

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-02072024-255070 EXTRAORDINARY PART I—Section 1 PUBLISHED BY AUTHORITY No. 171] NEW DELHI, SUNDAY, JUNE 30, 2024/ASHADHA 9, 1946 3857 GI/2024 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF TRADE REMEDIES) INITIATION NOTIFICATION New Delhi, the 29th June, 2024 Case No. AD (OI)-12/2024 Subject: Initiation of anti-dumping investigation concerning imports of "T-Shaped Elevator/Lift Guide Rails and Counterweight Guide Rails" originating in or exported from China PR. F. No. 6/14/2024-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 "AD Rules"), Savera India Riding Systems Company Private Limited (hereinafter also referred to as the “petitioner” or “domestic industry”) has filed an application before the Designated Authority (hereinafter also referred to as the “Authority"), for initiation of an antidumping investigation on imports of T-Shaped Elevator/Lift Guide Rails and Counterweight Guide Rails (hereinafter also referred to as the "product under consideration” or “PUC" or "subject goods") originating in or exported from China PR (hereinafter also referred to as the "subject country"). 2. The petitioner has alleged that injury to the domestic industry is being caused due to dumped imports of the subject goods originating in or exported from the subject country and has requested for the imposition of anti-dumping duty on the imports of the subject goods originating in or exported from the subject country. A. Product under consideration 3. The product under consideration in the present investigation is T-shaped Elevator/Lift Guide Rails and Counterweight Guide Rails, which are also known as Lift Guide Rails. Lift Guide Rails are of two types i.e., Solid Guide Rails and Hollow Guide Rails. Solid Guide Rails are T-shaped Guide Rails manufactured by machining or by cold-drawing T-profiles and are used for car guide rail applications and counterweight / balancing weight guide rail applications. Hollow Guide Rails are made of formed sheet metal and can be either open profiles or closed profiles and are used for counterweight / balancing weight guide rail applications. The PUC provides a guiding structure to ensure smooth and safe travel of the elevator car and counterweight/balancing weight. 4. The scope of the PUC includes T-Shaped Elevator/Lift Guide Rails and Counterweight Guide Rails of all types and dimensions, excluding the following: i. Cold-Drawn Guide Rails: These solid guide rails are manufactured through a cold-drawing process, which gives the final dimensions of the finished guide rails and modifies their mechanical properties and the surface characteristics (roughness). ii. Solid Guide Rails of large sizes / widths, i.e., T114/B, T127/B, T125/B and T140/B in different variants. These guide rails are referred to as special guide rails due to their large size. iii. Welded Hollow Guide Rails: These hollow guide rails are manufactured by welding the edges of the hollow guide rails normally by high frequency welding process or another equivalent welding process. 5. The product under consideration is classifiable under Chapter 84, under the tariff heading 8431 and the tariff item 8431 31 00 "Of lifts, skip hoists or escalators" and 8431 39 10 “Of elevators, conveyors and moving equipment" of the first schedule to the Customs Tariff Act, 1975. The subject goods are also imported under tariff item 8431 39 00 Others'. However, the petitioner has claimed that there is possibility of import of the product under consideration under any other heading / tariff item. Therefore, the tariff item for the product under consideration is only indicative and in no way binding upon the product scope. 6. The petitioner has proposed the following product control number (PCN) for the product under consideration for fair comparison: +-------+-------------------+-----------------+-----------+ | S. No. | Parameter | Type | PCN Code | +=======+===================+=================+===========+ | 1 | Type of Guide Rails | Solid Guide Rails | SGR | +-------+-------------------+-----------------+-----------+ | 2 | | Hollow Guide Rails| HGR | +-------+-------------------+-----------------+-----------+ 7. 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 initiation of this investigation. B. Like article 8. The domestic industry has submitted that there are no significant differences in the product produced by the domestic industry and exported from the subject country and both are like articles. The product produced by the domestic industry and imported from the subject country 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 AD Rules. Thus, for the purposes of initiation of the present investigation, the product produced by the domestic industry has been prima facie considered as like article to the product being imported from the subject country. C. Domestic industry and standing 9. The petition has been filed by Savera India Riding Systems Company Private Limited. It has been claimed that as per the petitioner's information, there are two more producers of the PUC in India namely N. Liftee Engineers and Nav Durga Steel Corporation. The petition has been supported by N. Liftee Engineers, who has provided quantitative information regarding its capacity, production and sales of the PUC. The petitioner alone constitutes 89% of the total Indian production. The share of the petitioner along with the supporter is 95% of the total Indian production. 10. The petitioner has imported a miniscule quantity of the PUC from the subject country during the POI for localizing production and facilitating product reengineering efforts. It has been claimed that the imports made by the petitioner is negligible in terms of its own production, sales, total imports and the demand of the PUC in India. 11. The petitioner has affiliated companies in China PR involved in manufacturing and selling of the PUC. The Chinese affiliated companies have exported a miniscule quantity of the PUC to India. The petitioner has claimed that despite having affiliated companies in the subject country, the petitioner still constitutes domestic industry because its affiliated exporters from China has exported miniscule quantity in relation to the total imports of the PUC in India in the POI. The significant share of the imports of the PUC are made by the unaffiliated producers/exporters from China. 12. Considering the claims of the petitioner and evaluating the volume of imports made by the petitioner and the volume of exports made by the petitioner's affiliated exporters from China, the Authority considers it appropriate to hold that prima facie, the petitioner constitutes domestic industry under Rule 2(b). 13. From the information on record, the petitioner along with and without the supporter, accounts for a major proportion of the total domestic production of the like article in India. Accordingly, the petitioner prima facie constitutes domestic industry as defined under Rule 2(b) of the AD Rules, and the petition prima facie satisfies the requirement of standing in terms of Rule 5(3) of the AD Rules. D. Subject country 14. The subject country in the present investigation is China PR. E. Period of investigation 15. The period of investigation (POI) for the investigation is from 1st January 2023 to 31st December 2023 (12 Months). The injury examination period covers the periods from 1st April 2020 to 31st March 2021, 1st April 2021 to 31st March 2022, 1st April 2022 to 31st March 2023 and the POI. F. Dumping margin computation a. Normal Value 16. The petitioner has claimed that in terms of Article 15(a)(i) of China's Accession Protocol and Para 7 of the Annexure I to the AD Rules, the normal value of producers of China PR may be determined based on the costs or domestic selling prices prevailing in China PR only if the responding producers from China PR demonstrate that their cost and price information are based on market driven principles and allow for fair comparison in terms of paras 1 to 6 of Annexure-I to the AD Rules, failing which, normal value for the Chinese producers must be determined based on paras 7 and 8 of Annexure-I to the AD Rules. 17. The petitioner has also claimed that the data relating to cost or price in a market economy third country or recourse to other alternative methods is not available at this stage. The normal value has been, therefore, constructed based on the best estimates of the cost of the production in India of the subject goods as available after adjusting the selling, general and administrative expenses with reasonable profit margin. b. Export price 18. The export price of the subject goods has been computed by considering the CIF price reported in the DG Systems data. The price adjustments have been made on account of ocean freight, marine insurance and other expenses on account of bank charges, port expenses, inland freight and loading and unloading charges as claimed by the petitioner. с. Dumping margin 19. The normal value and the export price have been compared at the ex-factory level, which prima facie shows that the dumping margin is above the de-minimis level and significant in respect of the product under consideration from the subject country. G. Allegation of Injury and Causal Link 20. Information furnished by the petitioner has been considered for assessment of injury to the domestic industry on account of dumped imports of the subject goods from the subject country. The volume of the subject goods from the subject country has increased in absolute as well as relative terms. The price undercutting from the subject country is positive. The landed price of the subject imports had the depressing effect on the prices of the domestic industry. The petitioner has claimed that because of the adverse volume and price effect of the dumped imports, its performance has deteriorated in respect of capacity utilization, market share, domestic sales, cash profit, profit and return on investment. The petitioner has also claimed the threat of injury to the domestic industry due to dumped imports. There is sufficient prima facie evidence that the domestic industry has suffered material injury and threat of injury due to dumped imports from the subject country to justify the initiation of the anti-dumping investigation. H. Initiation of the Anti-dumping investigation 21. On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by the domestic industry concerning the dumping of the product under consideration originating in or exported from the subject country, 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 country 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 AD 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 jd12- [email protected] and [email protected] with a copy to [email protected] and consultant- [email protected]. 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 country, the government of the subject country through its embassy in India, the importers and users in India who are known to be associated with the subject goods 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 AD Rules, 1995 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 AD Rules, 1995 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 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 email addresses [email protected] and [email protected] with a copy to [email protected] and [email protected] within 30 days from the date of receipt of the notice as per Rule 6(4) of the AD Rules. It may, however, be noted that in terms of explanation of the said AD 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 Designated 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 AD 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. 30. The interested parties are further advised to keep a regular watch on the official website of DGTR at www.dgtr.gov.in for any updated information with respect to this investigation. Interested parties are directed to regularly visit the website of DGTR (https://dgtr.gov.in/) to stay apprised with further developments in the subject investigation and remain informed regarding notices that may be issued from time to time regarding questionnaire formats, PCN methodology, PCN_discussion/meeting schedule, notice of oral hearing, corrigendum, amendment notifications, and other such information. This will ensure that all interested parties to the subject investigation remain well aware of the progress and information pertaining to the subject investigation. 31. 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 stipulated time as per this notification. L. Submission of information on a confidential basis 32. 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 and the Trade Notices issued in this regard. Failure to adhere to the above may lead to rejection of the response/submissions. 33. The parties making any submission (including Appendices/Annexes attached thereto), before the Authority including questionnaire response, are required to file confidential and non-confidential versions separately. 34. 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. 35. The confidential version shall contain all information that is by nature confidential and/or other information which the supplier of such information claims as confidential. For information that 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. 36. 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 statement of reasons why summarization is not possible must be provided to the satisfaction of the Authority. 37. The interested parties can offer their comments on the issues of confidentiality claimed by the other interested parties within 7 days from the date of circulation of the non-confidential version of the documents. 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. Any submission made without a meaningful non-confidential version thereof or without a good cause statement on the confidentiality claim shall not be taken on record by the Authority. M. 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/response/information to all other interested parties. Failure to circulate nonconfidential version of submissions/response/information might lead to consideration of an interested party as non-cooperative. N. 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. ANANT SWARUP, Designated Authority Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. GORAKHA Digitally signed by GORAKHA NATH YADAVA NATH YADAVA Date: 2024.07.02 15:35:39 +05'30

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