Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-19032025-261718
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 79]
NEW DELHI, TUESDAY, MARCH 18, 2025/ PHALGUNA 27, 1946
MINISTRY OF COMMERCE AND INDUSTRY
(DEPARTMENT OF COMMERCE)
(Directorate General of Trade Remedies)
INITIATION NOTIFICATION
New Delhi, the 18th March, 2025
Case No. AD (SSR) - 01/2025
Subject: Initiation of sunset review investigation of anti-dumping duty concerning imports of "Flexible
Slabstock Polyol" originating in or exported from Saudi Arabia - reg.
1. F. No. 7/03/2025-DGTR – An application has been filed by M/s Manali Petrochemicals Limited (hereinafter referred
to as the 'applicant') before the Designated Authority (hereinafter referred to as the 'Authority'), 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 to as the 'Rules'), for initiation of sunset
review investigation of anti-dumping duty concerning imports of Flexible Slabstock Polyol (hereinafter referred to as
'FSP' or 'subject goods' or 'product under consideration'), originating in or exported from Saudi Arabia, Singapore
and UAE (hereinafter referred to as the 'subject country').
2. In terms of Section 9A (5) of the Act, the anti-dumping duty imposed shall, unless revoked earlier, cease to have effect
on expiry of five years from the date of such imposition, and the Authority is required to review whether the expiry of
duty is likely to lead to continuation or recurrence of dumping and injury.
A. BACKGROUND OF PREVIOUS INVESTIGATION
3. The Authority had recommended imposition of anti-dumping duty on imports of FSP from Singapore, Australia and
European Union vide Notification F. No. 14/01/2013-DGAD, dated 11th January 2014 which were given effect
through Notification No. 9/2015-Customs (ADD) dated 7th April 2015. Thereafter, a sunset-review was conducted on
imports from Singapore and the Authority issued its final findings vide Notification F. No. 7/12/2019-DGTR, dated
17th March 2020. The findings were given effect through Notification No. 14/2020- Customs (ADD), dated 9th June
2020. The anti-dumping duties were continued for the period of 5 years ending on 8th June 2025.
4. The anti-dumping investigation concerning imports of subject goods from Saudi Arabia and UAE was also initiated
vide Notification F. No. 6/20/2019-DGTR, dated 18th December 2019. The final finding was issued on 1st September
2020, recommending imposition of anti-dumping duty. The findings were given effect vide Customs Notification No.
20/2021-Customs (ADD), dated 5th April 2021.
5. In this regard, it is noted that the application requesting initiation of review with respect to Singapore was not filed
within the timeline prescribed under the Trade Notice No. 02/2017 dated 12th December 2017. Additionally, it is noted
that there are no known producers of the product under consideration in UAE which can export the product into India.
Thus, Singapore and UAE are not being considered as subject countries for the purpose of this review investigation.
B. PRODUCT UNDER CONSIDERATION
6. The product under consideration in the present investigation is same as defined in the final findings of the original
investigation, which is as follows:
"ix. The product under consideration in the present investigation is Flexible Slabstock Polyol. The subject
product is a clear viscous liquid polymer of molecular weight 3000-4000, manufactured by polymerization
of propylene oxide and ethylene oxide with a triol chain starter. It is a polyether and on reaction with
catalysts and additives yields polyurethane foams used in upholstery, mattresses, pillows, bolsters, transport
seating and packaging. Flexible Slabstock Polyol is transported in tankers or stored in steel drums
(hereinafter referred to as the “subject goods").
x. The subject goods are classified under the category "Plastics and articles thereof” in Chapter 39 of the
Customs Tariff Act, 1975 and further under 3907 20 as per Indian Trade Classification. The classification,
however, is only indicative and in no way binding on the scope of the present investigation. The Authority
notes that while different ITCHS may be quoted by producers/exporters, the product description assumes
primary over the ITCHS as the same is indicative."
7. The present application being a sunset review investigation, the product under consideration remains the same as
defined in the original final finding notification.
8. The subject goods are classified under Chapter 39 viz., "Plastics and articles thereof", of the Customs Tariff Act under
heading 3907 and tariff item 3907 29 10 and 3907 29 90, with effect from 1st February 2022. Additionally, the product
9.
has also been imported under the sub-heading 3907 20 for part of the injury period, i.e., 1st April 2021 to 31st January
2022. The customs classification is only indicative and is not binding on the scope of the product under consideration.
The applicant has not proposed any PCN at this stage. The parties to the present investigation may provide their
comments, on the scope of the PUC and propose PCNs, if any, within 15 days from the date of initiation of this
investigation.
C. LIKE ARTICLE
10. The applicant has claimed that the products produced by it are comparable in all material aspects, including the
physical and chemical properties, applications and end uses, prices, etc. with the product under consideration imported
from the subject countries. The customers use the products interchangeably.
11. Accordingly, it is noted that there are no known material differences in the article produced by the domestic industry
and the product under consideration exported from the subject country. The article produced by the domestic industry
and the product under consideration imported from the subject country are comparable in terms of physical &
chemical characteristics, manufacturing process & technology, functions & uses, product specifications, pricing,
distribution & marketing and tariff classification of the goods. The article manufactured by the domestic industry are
technically and commercially substitutable with the product under consideration imported from the subject country.
Therefore, for the purpose of initiation of the present investigation, the article produced by the domestic industry has
been considered as “like article" to the product under consideration being imported from the subject country.
D. DOMESTIC INDUSTRY AND STANDING
12. Rule 2(b) defines domestic industry as follows:
"Domestic industry means the domestic producers as a whole of the like article or domestic producers whose
collective output of the said article constitutes a major proportion of the total domestic production of that
article, except when such producers are related to the exporters or importers of the alleged dumped article,
or are themselves importers thereof, in which case such producers shall be deemed not to form part of
domestic industry."
13. The application has been filed by M/s Manali Petrochemicals Limited. The applicant is the sole producer of the like
article in India. The applicant has submitted that it is not related to any exporters of the subject goods from the
subject countries or importer of subject goods in India.
14. The Authority notes that the applicant accounts for 100% of the total Indian production of the subject goods. In view
of the same, 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.
E. SUBJECT COUNTRY
15. The subject country for the purpose of the present review investigation is Saudi Arabia.
F. PERIOD OF INVESTIGATION
16. The period of investigation for the purpose of the present investigation is 1st October 2023 to 30th September 2024 (12
months). The injury investigation period will cover the period 1st April 2021 to 31st March 2022, 1st April 2022 to 31st
March 2023, 1st April 2023 to 31st March 2024 and the period of investigation.
G. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING
i. Normal value
17. The applicant has claimed that it did not have access to any evidence of domestic selling price or information
regarding actual cost of production of the producers in Saudi Arabia. Thus, the applicant calculated a normal value
based on the price payable in India based on its own cost of production, with a reasonable addition of profits. For the
purpose of the present initiation, the Authority has considered the normal value as determined by the applicant.
ii. Export price
18. The export price of the subject goods has been determined by considering CIF price of the subject goods based on the
DGCI&S import data. Price adjustments have been made on account of ocean freight, marine insurance, commission,
port expenses, inland freight and bank charges to arrive at ex-factory export price. There is sufficient evidence of
export prices claimed for the subject country.
iii. Dumping margin
19. The normal value and export price of the subject goods have been compared at the ex-factory level, which prima facie
shows that the dumping margin is above de-minimis level and is significant in respect of product under consideration
from the subject country. However, since the present investigation is a sunset review, the Authority is required to
examine whether cessation of existing duties is likely to lead to continuation or recurrence of dumping and injury.
H. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF INJURY
20. The applicant has provided prima facie evidence establishing that the subject imports have caused injury to the
domestic industry. The volume of imports has increased significantly over the injury period both in absolute terms and
in relation to production and consumption in India. The price of the imports from the subject countries has declined
significantly and the subject imports are undercutting and are supressing and depressing the prices of the domestic
industry. Further, the subject imports are priced below the cost of the domestic industry and even lower than the raw
material cost of the domestic industry. The production, capacity utilisation and domestic sales of the domestic industry
declined over the period, as a result of which its market share also declined. This has resulted in significant piling up
of inventories. The domestic industry has claimed that the presence of dumped imports has resulted in significant
financial losses, cash losses and negative return on investments.
21. Further, the applicant has claimed that there is likelihood of continuation of dumping and injury to the domestic
industry if the duties are allowed to expire. In this regard, the applicant has submitted that the exporters in subject
country have continued to dump the subject goods, the volume of subject imports has increased continuously while
the landed price has continued to decline, the subject imports are undercutting the domestic prices and would have
further depressing effect on the prices of the domestic industry.
22. There is prima facie evidence regarding the likelihood of continuation of dumping and injury to the domestic industry
in the event of cessation of anti-dumping duty in respect of Saudi Arabia.
I. INITIATION OF SUNSET REVIEW INVESTIGATION
23. On the basis of the duly substantiated application of the applicant, and itself on the basis of the prima facie evidence
submitted by the applicant, substantiating the likelihood of continuation of dumping and injury, and in accordance
with Section 9A(5) of the Act read with Rule 23(1B) of the Rules, the Authority hereby initiates a sunset review
investigation to review the need for continued imposition of the duties in force in respect of the subject goods,
originating in or exported from the subject country and to examine whether the expiry of such duty is likely to lead to
continuation or recurrence of dumping and injury to the domestic industry.
J. PROCEDURE
24. The sunset review investigation will cover all aspects of the final findings published vide Notification F. No.
6/20/2019-DGTR, dated 1st September 2020, recommending the imposition of anti-dumping duty on the imports of
the subject goods originating in or exported from the subject country.
25. The provisions of Rules 6, 7, 8, 9, 10, 11, 16, 17, 18, 19, and 20 of the Rules shall be mutatis mutandis applicable in
this review
K. SUBMISSION OF INFORMATION
26. All communication should be sent to the Designated Authority via email at the email addresses <dir13-dgtr@gov.in>
and <ad12-dgtr@gov.in> with a copy to <dir15-dgtr@gov.in> and <consultant-dgtr@nic.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.
27. The known producers/exporters in the subject country, the government of the subject country through its embassy 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 set out below. 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.
28. Any other interested party may also make its submissions relevant to the investigation in the prescribed form and
manner within the time-limit set out below.
29. 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.
30. 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.
L. TIME LIMIT
31. Any information relating to the present investigation should be sent to the Designated Authority via email at the email
<dir13-dgtr@gov.in> and <ad12-dgtr@gov.in> with a copy to <dir15-dgtr@gov.in>and <consultant-dgtr@nic.in>
within 30 days from the date on which the non-confidential version of the application filed by or on behalf of 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, 1995. 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.
32. 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.
M. SUBMISSION OF INFORMATION ON CONFIDENTIAL BASIS
33. Where any party makes any 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. Failure
to adhere to the same may lead to rejection of the response / submissions.
34. 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.
35. 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 provide a good cause statement along with the supplied information as to why such
information cannot be disclosed.
36. 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 summarized depending upon the information on which confidentiality is
claimed.
37. 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
as to why such summarization is not possible, must be provided to the satisfaction of the Authority.
38. The interested parties can offer their comments on the issues of confidentiality claimed by the interested parties within
7 days from the date of circulation of the non-confidential version of the submission.
39. 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.
40. 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.
41. 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.
N. INSPECTION OF PUBLIC FILE
42. A list of registered interested parties will be uploaded on the DGTRs 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 non-
confidential version of submissions might lead to consideration of an interested part as non-cooperative.
O. NON-COOPERATION
43. 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