Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-20032025-261714
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 80]
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 (OI)-02/2025
Subject:
Initiation of anti-dumping investigation concerning imports of "Flexible Slabstock Polyol"
originating in or exported from China PR and Kingdom of Thailand - reg.
1.
F. No. 6/02/2025-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 an anti-dumping investigation and imposition of anti-dumping duty on imports of
Flexible Slabstock Polyol (hereinafter referred to as 'FSP' or 'subject goods' or 'product under consideration'),
originating in or exported from China PR and Thailand (hereinafter referred to as the 'subject countries').
2.
The applicant has alleged that injury is being caused to the domestic industry due to the alleged dumped
imports of the product under consideration. Accordingly, the applicant has requested for the imposition of anti-
dumping duty on imports of the subject goods from the subject countries.
A.
PRODUCT UNDER CONSIDERATION
3.
The product under consideration is “Flexible Slabstock Polyol”, abbreviated as FSP. It 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 which is used in upholstery, mattresses, pillows, bolsters, transport seating and packaging.
The major raw materials used in the production process are propylene oxide and ethylene oxide.
4.
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 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.
5.
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.
B.
LIKE ARTICLE
6.
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.
7.
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 countries. The article produced by the
domestic industry and the product under consideration imported from the subject countries 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 countries. 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 countries.
C.
DOMESTIC INDUSTRY AND STANDING
8.
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."
9.
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.
10.
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.
D.
SUBJECT COUNTRIES
11.
The subject countries for the present anti-dumping investigation are China PR and Kingdom of Thailand.
E.
PERIOD OF INVESTIGATION
12.
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.
F.
BASIS FOR ALLEGED DUMPING
i.
Normal value for China PR
13.
The applicant has claimed that China PR should be treated as a non-market economy and that producers from
China PR should be directed to demonstrate that market economy conditions prevail in the industry with regard
to the production and sales of the subject goods. Unless the producers from China PR show that such market
economy conditions prevail, their normal value should be determined in accordance with Para 7 of Annexure-I
to the Rules.
14.
The applicant has claimed that it did not have access to information with regard to prices or cost in an
appropriate market economy third country, or price of exports from an appropriate market economy country to
other countries. Accordingly, the applicant calculated the normal value for China PR based on the price payable
in India, based on its cost of production plus reasonable profits.
ii.
Normal value for Thailand
15.
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 Thailand. 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.
16.
For the purpose of the present initiation, the Authority has considered the normal value as determined by the
applicant for both of the subject countries.
iii.
Export price
17.
The export price of the subject goods has been determined by considering CIF price of the subject goods, as
reported in 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 subject countries.
iv.
Dumping margin
18.
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 countries. Thus, there is prima facie evidence that the product under
consideration from subject countries is being dumped by the exporters in the Indian market.
G.
INJURY AND CAUSAL LINK
19.
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
utilization 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.
20.
Therefore, there is sufficient prima facie evidence that injury is being caused to the domestic industry by the
dumped imports from the subject countries.
H.
INITIATION OF ANTI-DUMPING INVESTIGATION
21.
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, substantiating dumping of the product under
consideration from the subject countries, injury to the domestic industry and a causal link between such
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 the dumping with respect of
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
22.
The principles as given in Rule 6 of the Rules will be followed in the present investigation.
J.
SUBMISSION OF INFORMATION
23.
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.
24.
The known producers/exporters in the subject countries, the government of the subject countries 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
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.
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 Rules, 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 interested parties.
27.
Interested parties are further advised to regularly visit the official website of the Directorate General of Trade
Remedies (https://www.dgtr.gov.in) for any updated 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 <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.
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 as stipulated in this
notification.
30.
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
31.
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.
32.
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.
33.
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.
34.
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.
35.
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.
36.
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.
37.
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.
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 authorise its disclosure in
generalised or summary form, it may disregard such information.
M.
INSPECTION OF PUBLIC FILE
39.
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.
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