Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-02072025-264264
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 187]
NEW DELHI, MONDAY, JUNE 30, 2025/ Ashadha 9, 1947
MINISTRY OF COMMERCE AND INDUSTRY
(DEPARTMENT OF COMMERCE)
(Directorate (General of Trade Remedies)
INITIATION NOTIFICATION
New Delhi, the 30th June, 2025
Case No. AD (OI) 20/2025
Subject: Initiation of anti-dumping investigation concerning imports of “4-(Bromomethyl)-2'-
cyanobiphenyl” also known as “Bromo OTBN” originating in or exported from China PR.
F. No. 6/23/2025-DGTR
1. M/s Neogen Chemicals Ltd. (hereinafter referred to as the 'applicant') has filed an application
before the Designated Authority (hereinafter referred to as the 'Authority'), on behalf of the
domestic industry, in accordance with 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 as the 'Rules'), for initiation of an anti-
dumping investigation concerning imports of “4-(Bromomethyl)-2'-cyanobiphenyl” which is also
known as "Bromo OTBN” (hereinafter referred to as the ‘subject goods' or the 'product under
consideration') originating in or exported from China PR (hereinafter referred to as the 'subject
country').
2 The applicant has alleged that the subject goods are being imported into India, originating in or
exported from the subject country at dumped prices in significant quantities for a prolonged
period and is causing material injury to the domestic industry in India and has requested for the
imposition of anti-dumping duty on the import of the subject goods from the subject country.
A. PRODUCT UNDER CONSIDERATION
3. The product under consideration in the present case is “4-(Bromomethyl)-2'-cyanobiphenyl"
(hereinafter also referred to as “Product under Consideration" or PUC. As per the information
contained in the Application filed by the domestic industry, the PUC is also known as “Bromo
OTBN". Bromo OTBN is a cream / off white colored powder used in the manufacturing of certain
pharmaceutical API's, mainly Valsartan, Irbesartan & Telmisartan.
4. Subject goods act as intermediate in the synthesis of pharmaceutical drugs of sartan class such as
Losartan, azilsartan ester and telmisartan. It is also used in the synthesis of other pyrazolines and
related derivatives. In addition, recently reported studies have indicated the role of subject goods
in the determination of potential genotoxic impurities in telmisartan using ESI-MS/MS technique
and other solvents using thermodynamic studies.
5. The chemical structure of the subject goods consists of a central biphenyl core with substituents
on each benzene ring. The cyano group (-CN) is located on the 2' position of one benzene ring,
while the bromomethyl group (-CH2Br) is situated on the 4 positions of the other benzene ring.
This arrangement gives the molecule its unique properties and reactivity.
6. The alleged dumped goods are classified under Chapter 29 of the Customs Tariff Act, 1975. The
petitioner has submitted that the subject goods are being imported under different codes from company to
company and country to country, and majority of the imports are happening under the headings
29269000, 29339990, 29332990,29420090, 29152990. However, it is noted that in Anti-dumping
investigations the customs classification is indicative only and in no way, it is binding upon the
product scope.
7. The interested parties, can provide their comments/suggestions on the proposed product scope and
may suggest PCNs for the purpose of this investigation within 30 days from the date of this
notification.
B. LIKE ARTICLE
8. The applicant has 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 subject goods produced by the Indian industry and the product under consideration produced
and exported from the subject country. The two products are comparable in terms of essential
product characteristics such as physical and chemical characteristics, manufacturing process and
technology, functions and uses, product specifications, pricing, distribution and marketing and
tariff classification of the goods. Consumers can use and are using the two interchangeably. The
Authority notes the view points of the applicant. Hence, for the purpose of the present
investigation, the subject goods produced by the applicant are being treated by the Authority as
'like article' to the subject goods being imported from the subject country.
C. SUBJECT COUNTRY
9. The application has been filed in respect of the dumped imports of the product under
consideration from China PR.
D. DOMESTIC INDUSTRY AND STANDING
10. As per the application filed by the applicant, there are two more producers of the subject goods in
the country. The applicant has claimed that it holds major share in total Indian production.
11. On the basis of information available and after due examination, the Authority notes that
production by the applicant constitutes “a major proportion" of total Indian production. The
applicant has certified that it has neither imported the PUC nor is related to any producer/exporter
of the product under consideration in China PR or any importer of the subject goods in India.
12. In view of the above and after examination, the Authority 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 supra.
E. BASIS OF ALLEGED DUMPING
i. Normal Value
13. The applicant has cited and relied upon Article 15(a) (i) of China's Accession Protocol. The
applicant has claimed that producers in China PR must be asked to demonstrate that market
economy conditions prevail in the industry producing the subject goods with regard to the
manufacture, production and sale of the product under consideration. It has been stated by the
applicant that in case the responding Chinese producers are not able to demonstrate that their costs
and price information are market driven, the normal value should be calculated in terms of
provisions of Para 7 of Annexure I to the Rules.
14. In terms of Para 7 of Annexure-1, in case of imports from non-market economy countries, normal
value is required to be determined on the basis of the price or constructed value in a market
economy third country, or the price from such a third country to other countries, including India, or
where it is not possible, on any other reasonable basis, including the price actually paid or payable
in India for the like product, duly adjusted if necessary, to include a reasonable profit margin.
15. The domestic industry has submitted that they were not able to find any suitable surrogate country
for China PR. In the absence of any other sufficient information, the Domestic Industry has
proposed to determine the normal value under the clause "any other reasonable basis". The
domestic industry has proposed constructing the normal value taking into account the
information/figures of their cost of production, duly adjusted.
16. The Authority has constructed the normal value based on the cost of production of the domestic
industry, making due adjustments, in terms of the principles of Annexure-I to the Anti-dumping
Rules.
ii. Export price
17. The export price for the subject goods from the subject country is calculated by the petitioner
based on the data sourced from private source as well as their market intelligence. However, the
Authority has considered DG-systems data for the purpose of present initiation. Price adjustments
have been made for ocean freight, marine insurance, commission, inland freight expenses, port
expenses and bank charges.
iii. Dumping margin
18. 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 is significant in respect of
the product under consideration from the subject country. Thus, there is sufficient prima facie
evidence that the product under consideration from the subject country is being dumped in the
Indian market by the exporters from the subject country.
F. INJURY AND CAUSAL LINK
19. Information furnished by the applicant has been considered for assessment of injury to the
domestic industry. The applicant has furnished evidence regarding the injury taken place as a
result of the alleged dumping in the form of an increased volume of dumped imports in absolute
terms, continued negative effect on cash flow and profitability, and price suppressing and
depressing effect on the domestic industry. The applicant has claimed that its performance has
been adversely impacted in respect of profitability and return on the investment as a result of in
imports of the product under consideration at an injurious price for the domestic industry.
20. Based on the information on record, the Authority notes that there is sufficient prima facie
evidence that the injury is being caused to the domestic industry by dumped imports from the
subject country.
G. INITIATION OF ANTI-DUMPING INVESTIGATION
21. 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.
H. PERIOD OF INVESTIGATION
22. The Authority has considered January 2024 –December 2024 (12 Months) as the period of
investigation ("POI") for the purpose of the present investigation. The period of injury covers the
periods from April 2021 to March 2022, April 2022 to March 2023, April 2023 to March 2024
and the POΙ.
I. PROCEDURE
23. The principles as stated under Rule 6 of the AD Rules, 1995 shall be followed in the present
investigation.
J. SUBMISSION OF INFORMATION
24. All communication should be sent to the Designated Authority via email at email addresses dd15-
dgtr@gov.in and dd19-dgtr@gov.in, with a copy to adv11-dgtr@gov.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. Submissions requiring special software to access the files will not be accepted.
25. 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.
26. 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 nonconfidential version of the same
available to the other parties.
K. TIME LIMIT
27. Any information relating to the present investigation should be sent to the Designated Authority
via email at email addresses dd15-dgtr@gov.in and dd19-dgtr@gov.in, with a copy to adv11-
dgtr@gov.in within thirty (30) days from the date on which the nonconfidential version of the
application filed by the domestic industry 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 AD Rules. If no information is received within the stipulated time limit or the information
received is incomplete, the Authority may record its findings on the basis of the facts available on
record and in accordance with the AD Rules, 1995.
28. 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.
29. 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
30. 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 / submissions.
31. 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. In case, the submission is made in multiple parts, it is instructed
to provide an index table in each part outlining the contents of all parts/emails and documents
enclosed. Please ensure page numbering on all submissions.
32. Where the original documents are in a language other than Hindi and English, the interested
parties are requested to ensure that the true translated version is provided along with the original
documents.
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 on 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.
37. The interested parties can offer their comments on the issues of confidentiality claimed by the
domestic industry within 7 days from the date of circulation of the non-confidential version of the
documents in terms of relevant paragraphs of this initiation notification.
38. 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.
M. INSPECTION OF PUBLIC FILE
39. 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. The non-confidential version of the questionnaire response or other submissions
should preferably be circulated to all other interested parties on the same day and, in no case, later
than the day following the filing of submissions on a confidential basis. 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
40. In case where an interested party refuses access to and otherwise does not provide necessary
information within a reasonable period or within the time stipulated by the Authority, or significantly
impedes the investigation. the Authority may declare such interested party as non-cooperative and
record its findings on the basis of the facts available to it and make such recommendations to the
Central Government as deemed fit.
SIDDHARTH MAHAJAN, 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 NATH
YADAVA
Digitally signed by GORAKHA NATH
YADAVA
Date: 2025.07.02 14:01:34 +05'30'