Initiation of ADD of Virgin Multi layer Paperboard from Chile and China PR

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-03102024-257646 EXTRAORDINARY PART I—Section 1 PUBLISHED BY AUTHORITY No. 278] NEW DELHI, MONDAY, SEPTEMBER 30, 2024/ ASVINA 8, 1946 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF TRADE REMEDIES) INITIATION NOTIFICATION New Delhi, the 30th September, 2024 Case No. AD (OI) - 26/2024 Subject: Initiation of anti-dumping investigation into imports of Virgin Multi-layer Paperboard from Chile and China PR. F. No. 6/28/2024-DGTR.—The Indian Paper Manufacturer Association (hereinafter also referred to as the “applicant” or “IPMA”) has filed an application on behalf of the domestic industry before the Designated Authority (hereinafter referred to as the “Authority”), in accordance with the Custom Tariff Act 1975, as amended, (hereinafter referred to as the "Act") and Custom Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 as amended, (hereinafter also referred to as the "AD Rules"), for the initiation of an anti-dumping investigation concerning imports of Virgin Multi-layer Paperboard (hereinafter referred to as "subject goods" or "product under consideration") originating in or exported from Chile and China PR (hereinafter referred to as "subject countries"). The applicant has alleged that material injury is being caused to the domestic industry due to dumped imports of the product under consideration originating in or exported from the subject countries and has requested for imposition of anti-dumping duty on the imports of the product under consideration from the subject countries. A. PRODUCT UNDER CONSIDERATION 1. The product under consideration is multi-layer board made of white / virgin wood pulp, whether coated or uncoated, and is also known as Virgin Multi-Layer Paperboard. The product under consideration is made up of multiple layers of paper bonded together. The product under consideration is made up of pulp from fibre of trees. The product under consideration comes in various grades. The product under consideration includes Folding Box Board (FBB), Solid Bleached Sulfate Board (SBS), Cup Stock Paper or Board and Liquid Packaging Board, all in the range of 140 to 450 GSM. These are classified into two main categories, virgin grade which is manufactured from fibre of the trees and recycled grade manufactured from fibres obtained from recovered paper and paperboard. Coated/uncoated cigarette boards and paperboards made out of recycled/brown pulp or fibre are excluded from the scope of the product under consideration. 2. The product under consideration is predominantly used as material in the packaging industry due to its strength and purity. They are used for packing of food, cosmetics and pharma products. 3. Solid Bleached Sulfate Board (SBS) paperboard is a high-quality paperboard made from bleached virgin pulp, which is coated with clay and thereafter treated to ensure resistance to moisture. Folding Box Board (FBB) is made up of an inner layer of mechanical pulp in between outer layers of chemical pulp. Folding Box Board uses less wood as compared to SBS paperboard. Cup stock grade is used to manufacture disposable cups and cup shaped containers for food items. The usage of the subject goods often requires compliance to relevant safety regulations. 4. The product under consideration is classified under Chapter 48 of the Customs Tariff Act, 1975, under the heading 4805 and 4810. The product under consideration is also being imported under the ITC HS Codes 4805 91 00, 4805 92 00, 4805 93 00, 4810 92 00 and 4810 99 00. The applicant has claimed that the subject goods are also being imported under other HS Codes including 4802 2090, 4802 5790, 4804 1900, 4804 3900, 4804 4200, 4804 5200, 4804 5900, 4805 1900, 4810 1320, 4810 1330, 4810 1390, 4810 1430, 4810 1490, 4810 1910, 4810 1990, 4810 2200, 4810 2900, 4810 3100, 4810 3200, 4810 3990, 4811 5110, 4811 5190, 4811 5910, 4811 5990, 4811 9099, 4819 1010 and 4819 2090 The customs classification is only indicative and is not binding on the scope of the present investigation. 5. The parties to the present investigation may provide their comments on the PUC and propose PCNs, if any, within 15 days from the date of initiation of this investigation. B. LIKE ARTICLE 6. The applicant has submitted that, the subject goods exported from the subject countries are identical to the goods produced by the domestic industry. The subject goods produced by the domestic industry have comparable characteristics to the subject goods imported from the subject countries in terms of technical specifications, physical & chemical characteristics, manufacturing process & technology, functions & uses, pricing, distribution & marketing and tariff classification. The two are technically and commercially substitutable. Therefore, for the purpose of initiation of the present investigation, the subject goods produced by the applicant domestic producers are being treated as ‘like article' to the subject goods originating in or exported from the subject countries. C. DOMESTIC INDUSTRY AND STANDING 7. The application has been filed by the Indian Paper Manufacturing Association on behalf of the domestic industry. The following members and domestic producers of the subject goods in India have provided information for the present investigation. (hereinafter referred to as “applicant domestic producers”). a. Century Textiles and Industries Limited b. Emami Papers Mills Limited c. ITC Limited d. JK Paper Limited e. Tamil Nadu Newsprint and Papers Limited 8. The applicant has submitted that the applicant domestic producers are not related to exporters of subject goods in subject countries or importers of product under consideration in India. Further, the applicant domestic producers have not imported the product under consideration from the subject countries during the period of investigation. 9. Apart from the applicant domestic producers, there is another domestic producer of the subject goods in India, namely, West Coast Paper Mills Limited. West Coast Paper Mills Limited has filed a letter supporting the application filed by the applicant. 10. In view of the above and after examination of the application filed by the applicant, the Authority notes that the applicant domestic producers account for major proportion of total Indian production and constitute ‘domestic industry' within the meaning of Rule 2(b) and the application satisfies the criteria of standing in terms of Rule 5(3) of the Anti-Dumping Rules. D. SUBJECT COUNTRIES 11. The application has been filed in respect of dumped imports of the product under consideration from the Republic of Chile (“Chile”) and the People's Republic of China ("China PR"). E. PERIOD OF INVESTIGATION 12. The applicant has proposed 1st April 2023 to 31st March 2024 as the period of investigation. The injury investigation period shall cover the period 2020-21, 2021-22, 2022-23 and the period of investigation. The Authority considers that the period of investigation is appropriate, considering the Anti-Dumping Rules. F. BASIS OF ALLEGED DUMPING Normal value for China PR 13. The applicant has submitted that China PR must be considered as a non-market economy and the Chinese producers should be directed to demonstrate that the market economy conditions prevail with regards to the production and sale of that product under consideration. Unless the producers from China PR show that such market economy conditions prevail, their normal value must be determined in accordance with Para 7 of Annexure – I to the Anti-Dumping Rules 1995 (“AD Rules”). 14. Therefore, for the purpose of the present initiation, the Authority has determined normal value for China PR based on price payable in India. The normal value has been determined based on the estimates of cost of production of the applicant domestic producers duly adjusted for selling, general and administrative expenses, along with reasonable profit margin. The normal value methodology claimed by the applicant has been considered for the purpose of initiation. Normal value for Chile 15. The applicant has claimed that it did not have access to information regarding the domestic selling price prevailing in Chile. Since there is no dedicated tariff classification for the product, the applicant could not rely upon price of imports into the subject country or exports from the subject country. Further, information with regard to cost of production in the subject country was not available to the domestic industry. 16. For the purpose of initiation, the Authority has considered normal value for Chile estimated based on cost of production of the applicant domestic producers duly adjusted for selling, general and administrative expenses along with a reasonable profit margin. Export Price 17. The export price of the subject goods from the subject countries has been determined by considering the import data provided by the applicant. Price adjustments have been made on account of port expenses, inland freight, ocean freight, marine insurance, bank commission & credit cost to arrive at the net export price. Dumping margin 18. The normal value and the export prices have been compared at the ex-factory level, which prima facie establishes that the dumping margin is above the de-minimis level with respect to the subject goods imported from Chile and China. Thus, there is sufficient prima facie evidence that the product under consideration from Chile and China is being dumped in the domestic market of India by the exporters from the subject countries. G. INJURY AND CAUSLA LINK 19. Information furnished by the applicant, with regard to various parameters, has been considered for assessment of injury to the domestic industry. The applicant has provided information with respect to the injury suffered by the domestic industry because of dumped imports. There has been a significant increase in imports from subject countries in absolute and relative terms, at prices below cost of sales of the domestic industry. The applicant has claimed that the imports has suppressed and depressed the prices of the domestic industry. This has adversely impacted the performance of the domestic industry in respect of profitability. The financial profits and cash profits of the domestic industry have declined over the injury period and it has earned a low return on capital employed. The market share of the subject imports has doubled and that of the domestic industry has declined despite competing with the low import prices and compromising on its profitably. There is sufficient prima facie evidence of material injury being caused to the domestic industry by the dumped imports from the subject countries justifying initiation of an anti-dumping investigation. H. INITIATION OF ANTI-DUMPING INVESTIGATION 20. On the basis of the duly substantiated application filed by the applicant and on being satisfied based on the prima facie evidence submitted therein, concerning the dumping of the subject goods originating in or exported from the subject countries, the consequential injury to the domestic industry as a result of the alleged dumping of the subject goods 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 21. Principles as given in Rule 6 of the Rules shall be followed for the present investigation. J. SUBMISSION OF INFORMATION 22. All communication should be sent to the Designated Authority via email at email addresses [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. 23. The known producers/exporters in the subject countries, the Government of the subject countries through their embassies in India, and 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 Rules, and the applicable trade notices issued by the Authority. 24. 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. 25. 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. 26. 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 27. Any information relating to the present investigation should be sent to the Designated Authority via email at email address [email protected] and [email protected] with a copy to [email protected] and [email protected] within 30 days from the date on which the non-confidential version of the documents filed by the domestic industry would be circulated by the Designated Authority or transmitted to the appropriate diplomatic representative of the exporting countries 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. 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 and such request must come within the time stipulated in this notification. L. SUBMISSION OF INFORMATION ON CONFIDENTIAL BASIS 30. 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. 31. 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. 32. 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 show a good cause along with the supplied information as to why such information cannot be disclosed. 33. 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. 34. 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 AD 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. 35. The interested parties can offer their comments on the issues of confidentiality claimed in the submissions, within 7 days from the date of circulation of the non-confidential version of the documents in terms of relevant paragraph of this initiation notification. 36. 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. 37. The Authority may accept or reject the request for confidentiality on examination of the nature of the information submitted. If the Authority is not satisfied that the request for confidentiality is 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. 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 authorization of the party providing such information. M. Inspection of public file 39. 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. N. NON-COOPERATION 40. 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