ADD imports of Trichloro Isocyanuric Acid exported from China PR and Japan

EXTRAORDINARY PART I—Section 1 PUBLISHED BY AUTHORITY No. 252] NEW DELHI, TUESDAY, OCTOBER 3, 2023/ASVINA 11, 1945 CG-DL-E-04102023-249133 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce ) (DIRECTORATE GENERAL OF TRADE REMEDIES) INITIATION NOTIFICATION New Delhi , the 30th September , 2023 Case No. AD(OI)-19/2023 Subject :—Initiation of Anti -Dumping Investigation concerning imports of Trichloro Isocyanuric Acid originating in or exported from China PR, and Japan. F. No. 6/20/2023 -DGTR .—1. 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 thereof, as amended from time to time (hereinafter also referred to as the “Rules or AD Rules ”), Bodal Chemicals Limited (hereinafter referred to as the “applicant” or the “domestic industry”) has filed an application before the Designated Authority (hereinafter referred to as the “Authority”) for initiation of an anti -dumping investigation concer ning imports of “Trichloro Isocyanuric Acid” (hereinafter referred to as the “subject goods” or “product under consideration” or “TCCA”) from China and Japan (“subject countries”). 2. The applicant has alleged that dumping of imports of the subject goods or iginating in or exported from the subject countries has caused material injury to the domestic industry. Accordingly, the applicant has requested for the imposition of an anti -dumping duty on the imports of the subject goods from the subject countries. A. Product under consideration 3. The product under consideration (“PUC”) in the present petition is “Trichloro Isocyanu ric Acid”, also referred to as TCCA. TCCA is a chemical compound commonly used as a disinfectant, bleaching agent, and water treatment chemical. It is a white crystalline powder with a strong chlorine odour. TCCA is a powerful oxidizing agent and is widely used in swimming pools, as well as for industrial water treatment and sanitation. 4. TCCA is a disinfectant, algicide, and bactericide mainly for swimming pools and dyestuffs. It is also used as a bleaching agent in the textile industry. It is widely used in civil sanitation for pools and spas, preventing and curing diseases in animal husbandry & fisheries, fruit & vegetable preservation, wastewater treatment, as an algicide for recycled water in industry and air conditioning, in anti -shrink treatment for woo llens, for treating seeds and in organic chemical synthesis. 5. The product under consideration is classified under Chapter 29, under tariff codes 2933 6910 and 2933 6990. The customs classification is only indicative and is not binding on the scope of the p resent investigation. 6. The interested parties in the subject investigation may provide their comments on the PUC/PCN methodology, if any, within 15 days from the date of initiation of this investigation. B. Like article 7. The applicant has stated that there are no significant differences in the article produced by the applicant and exported from the subject countries. The article produced by the applicant and imported from the subject countries are comparable in terms of physical and chemical characteristics, man ufacturing process and technology, functions and uses, product specifications, pricing, distribution and marketing, and tariff classification of the subject goods. The subject goods and the article manufactured by the applicant is technically and commercia lly substitutable. The applicant has claimed that consumers of the subject goods are using the subject goods and the article manufactured by the applicant interchangeably. Thus, for the purposes of the present investigation, the article produced by the app licant has been considered as like article to the product being imported from China PR and Japan. C. Domestic industry and standing 8. The application has been filed by Bodal Chemicals Limited (BCL). The plant was set up by Trion Chemicals Private Limited and BC L acquired 100% stake in the company. The applicant is the sole producer of the like product in India. 9. The applicant has stated that they have not imported the subject goods from the subject countries and that they are not related to any exporter of the su bject goods in the subject countries or importer of the subject goods in India. Thus, the applicant constitutes domestic industry as defined under Rule 2(b) of the Anti - Dumping Rules, and the application satisfies the requirement of standing in terms of Ru le 5(3) of the Anti - Dumping Rules. D. Normal value Estimate of normal value for China PR 10. The applicant has claimed that China PR should be treated as a non -market economy and unless the Chinese producers show that market economy conditions prevail, their nor mal value should be determined in terms of Paragraph 7 of Annexure -I to the Rules. The applicant has claimed that apart from the subject countries, the product under consideration is produced only in the USA and Spain. Accordingly, the appropriate market economy third country would have to be selected amongst these countries. However, there is no publicly available information regarding the prices in these countries. Further, since the product under consideration does not have a dedicated tariff classificat ion, information regarding the price of imports into or total exports from the USA is also not available. Accordingly, the applicant has relied upon the price of its own exports from India to the USA as the price in a market economy third country. The Auth ority has considered the same for the purpose of initiation. Estimate of normal value – Japan 11. The applicant has claimed that the data relating to prices in Japan is not available in the public domain. The applicant was unable to obtain the comparable pric e for like product, in Japan. Further, since the product does not have a dedicated tariff classification, the price of exports from Japan is also not available. Accordingly, the normal value was required to be determined on an alternative basis. 12. Since the applicant does not have access to the actual cost of production of the producers in Japan, the applicant has determined the cost of production based on the best available information at this stage. For this purpose, the applicant has relied upon the price of one of the raw materials, caustic soda, in Japan based on the price of imports into Japan as per the Trade Map. Other raw materials, utilities and factors of cost of production, including selling, general and administrative expenses and profits, have be en claimed based on the available information. There is sufficient prima facie evidence of normal value claimed for Japan. E. Export price 13. The applicant has claimed the export price based on available information. However, the Authority has considered the exp ort price of the subject goods has been determined by considering the CIF price of the subject goods, as reported in the DGCI&S transaction -wise data. Adjustments have been made on account of ocean freight, marine insurance, commission, port expenses, inla nd freight, and bank charges to arrive at an ex-factory export price. F. Dumping margin 14. The normal value and export price have been compared at the ex -factory level. There is sufficient evidence that the normal value of the subject goods in the subject countr ies is significantly higher than the ex -factory export price indicating, prima facie , that the subject goods are being dumped by the exporters from the subject countries into the Indian market and the dumping margin is above de-minimis so as to justify initiation of the investigation. G. Injury and Causal link 15. Information furnished by the applicant has been considered for assessment of injury to the domestic industry. The applicant has claimed that it has suffered material injury as a result of the dumped impo rts. The information concerning imports and economic parameters of the domestic industry over the injury period show that the imports have increased in absolute terms over the injury period, and are significant in relation to the Indian production and cons umption. The imports are undercutting the prices of the domestic industry and have prevented price increases, which otherwise would have occurred. The applicant is facing significantly underutilized capacity, and its market share remains extremely low. The applicant has also claimed that it has been forced to export in order to dispose of its production and has sold in the domestic market below its cost of sale. As a result, the applicant has sold the subject goods at losses and incurred cash losses and a n egative return on its capital employed. There is sufficient prima facie evidence of injury being caused to the domestic industry by the dumped imports from the subject countries to justify the initiation of an anti -dumping investigation. H. Initiation of Anti -Dumping Investigation 16. On the basis of the duly substantiated application filed by or on behalf of the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted by the applicant, substantiating dumping of the produc t 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 Act read with Rule 5 of the Rules, the Authority, hereby, initiates an investigation to determine the existence, degree and effect of any alleged dumping in respect of the subject goods 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. I. Subject countries 17. The subject countries for the present anti -dumping investigation are China PR, and Japan. J. Period of investigation 18. The applicant had proposed 1st April 2022 to 31st March 2023 as the period of investigation (period of 12 months). The Authority has considered the period of investigation proposed by the applicant for the purpose of the investigation. The injury investigation period will cover the period of 2019 -20, 2020 -21, 2 021-22 and the POI. K. Procedure 19. Principles, as given in Rule 6 of the Rules, will be followed for the present investigation. L. Submission of Information 20. All communication should be sent to the Authority via email at the email addresses dd15 [email protected] , jd16- [email protected] , adv13 [email protected] and adg16 [email protected] It should be ensured that the narrative part of the submission is in searchable PDF/MS Work format and data files are in MS Excel format. 21. The known producers/exporters from the subject countries, their Governments through their Embassy in India, the importers and users in India known to be conc erned with the subject goods and the domestic producer 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. 22. Any other interested party may also make its sub missions relevant to the investigation in the form and manner prescribed within the time limit set out below on the email addresses mentioned hereinabove. 23. Any party making any confidential submission before the Authority is required to make a non -confident ial version of the same available to the other interested parties. 24. Interested parties are further advised to keep a regular watch on the official website of the Authority http://www.dgtr.gov.in/ for any updated infor mation with respect to this investigation. M. Time Limit 25. Any information relating to the present investigation should be sent to the Authority via email at the email addresses dd15 [email protected] , [email protected] , adv13 [email protected] and adg16 [email protected] within thirty days (30 days) from the date of receipt of the notice as per Rule 6(4) of the Anti -Dumping Rules. It may, however, be noted that in terms of explanation of the said Rule, 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 Authorit y or transmitted to the appropriate diplomatic representative of the exporting countries. If no information is received within the prescribed time limit or the information received is incomplete, the Authority may record its finding on the basis of the fac ts available on records in accordance with the Rules. 26. All the interested parties are hereby advised to intimate their interest (including the nature of interest) in the instant investigation and file their questionnaire response/submissions within the abov e time limit. N. Submission of information on a confidential basis 27. 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 Rules and the Trade Notices issued in this regard. Failure to adhere to the above may lead to rejection of the response/submissions. 28. The parties making any submission (including appendices/annexures attached thereto), before th e Authority, including questionnaire response, are required to file confidential and non -confidential versions separately. 29. The “confidential” or “non -confidential” submissions must be clearly marked as “confidential” or “non - confidential” at the top of eac h 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. 30. 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 m ust 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 informat ion 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 can offer their comments on the confidentiality claimed within 7 days of r eceiving the non - confidential version of the document. 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, the request for confidentiality is not warra nted or if the supplier of the information is either unwilling to make the information public or to authorize its disclosure in generalized or in summary form, it may disregard such information. 32. Any submission made without a meaningful non -confidential ver sion thereof or without a good cause statement on the confidentiality claim shall not be taken on record by the Authority. 33. 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. O. Inspection of Public File 34. 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 -confiden tial version of their submissions/response/information to all other interested parties. Failure to circulate a non -confidential version of submissions/responses/information might lead to the consideration of an interested party as non -cooperative. P. Non-cooperation 35. In case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the Authority may record its findings on the basis of the facts availa ble to it and make such recommendations to the Central Government as deemed fit. ANANT SWARUP, Designated Authority Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi -110064 and Published by t he Controller of Publications, Delhi -110054.