Initiation of Anti dumping investigation of Telescopic Channel Drawer Slider from China PR

EXTRAORDINARY PART I —Section 1 PUBLISHED BY AUTHORITY No. 224] NEW DELHI, WEDNES DAY, SEPTEMBER 20, 2023/BHADRA 29, 194 5 CG-DL-E-20092023-248850 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce ) (DIRECTORATE GENERAL O F TRADE REMEDIES) INITIATION NOTIFICATION New Delhi, the 20th September, 2023 (Case N o. OI -13/2023) Subject: Initiation of Anti -dumping Investigation concerning imports of “Telescopic Channel Drawer Slider” from China PR. F. No. 6/13/2023 -DGTR .—A. Backgro und 1. A representation has been received from (―Highhope Furniture Fittings Manufacturers Associates Pvt Ltd ‖ (hereinafter referred to as "Highhope"), and several other manufacturers representing manufacturers of ―Telescopic Channel Drawer Sliders‖ (here inafter referred to as ―subject goods‖ or ―product under consideration‖) before the Designated Authority (hereinafter referred to as ―Authority‖) stating that the industry in India is getting injured in view of increase in dumped imports of the subject goo ds from China PR (hereinafter referred to as subject country). 2. The Authority hereby takes cognizance of the information provided by the Indian industry manufacturing telescopic channel drawer sliders as per sub -rule 4 of rule 5 of 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 also referred as the "Rules") AD rules. 3. The Authority has also received the import data of the subject goods during the past four years which indicates increased imports from China PR. Imports from China PR accounts for 85.24% of the total imports of the subject goods. B. Product under consideration 4. The pr oduct under consideration in the preset investigation is ―telescopic channel drawer slider‖, also known as a drawer runner/channel/soft close telescopic channel. It is generally used in drawers, which are used for storing things. It is a small device that helps to simplify fluid motion while the drawer is closed and opened. Telescopic channels or runners are an essential component of modern furniture design that enhance the functionality and aesthetics of drawers. 5. It consists of two or more interlocking metal sections that extend and retract as the drawer is opened and closed. Telescopic channels or runners are commonly used in furniture, cabinets, and appliances that require easy access to storage space. 6. While the product is produced and sold in a num ber of different size and varieties, essentially these are comparable in terms of weight. The change in size of the product does not materially alter the unit cost of production and selling price (on weight basis). 7. The product under consideration is cla ssified under Chapter 83 of the Customs Tariff Act under subheading 83024110, 83024190, 83024200, and 83024900. The customs classification is only indicative, and not binding on the scope of this investigation. 8. The interested parties are directed to ma ke comments on the scope of product under consideration within 15 days of this initiation notification. C. Like Article 9. Noting the claim of the Highhope, the Authority prima facie holds that the goods produced by the domestic industry and the goods impo rted from subject country are comparable and also technically and commercially substitutable. Goods produced by the Indian industry are prima facie being treated as ―like article‖ to the product under consideration under the Rules for the purpose of the pr esent investigation. D. Domestic industry and standing 10. The Authority notes that the Indian industry is fragmented in nature, and belongs to the MSME category. Information on record shows that out of 30 known producers in India, Highhope represents abou t 25 domestic producers. Therefore, the Authority is prima facie satisfied that representation has been made 'by or on behalf of the domestic industry in terms of the provisions contained in Rule 2 (b) and Rule 5 (3) of the Rules. 11. Further, considering the MSME and fragmented nature of the industry, the number of producers involved, the Authority, in terms of Trade Notice 09/2021 dated 29th July 2021, seeks information from domestic producers as per Annexure I referred to in the trade notice based on whi ch Authority shall undertake sampling of domestic producers for the purpose of determination of injury margin. Therefore, while the information concerning all producers constituting domestic industry will be considered for injury analysis, the non -injuriou s price and injury margin will be determined based on data of a sample. E. Basis of alleged dumping 12. Considering the practise of the Authority and as per Article 15(a)(i) of China’s Accession Protocol it is considered that the Chinese producers must be asked to demonstrate that consistent with the provisions of Article 15(a)(i), market economy conditions prevail in the industry producing the like product, with regard to the manufacture, production and sale of that product under consideration. In case the responding Chinese producers are not able to demonstrate that their costs and price information are market driven, the normal value may be calculated in terms of provisions of Para 7 of Annexure I to the Rules. 13. Since, information on (a) the price in a market economy third country; (b) constructed value in a market economy third country; (c) the price from such a third country to other country, including India, is not available with the Authority at this stage, therefore, normal value in the subject cou ntry has been estimated on the basis of cost of production; taking into account cost of raw material, cost of utilities and conversion cost of domestic industry based on representations made by the domestic producers, duly adjusted on account of selling, g eneral & administration expenses, plus reasonable profit. 14. For determination of export price, the Authority has considered transaction wise import data procured from DGCI&S. The export prices have been adjusted for port expenses, bank charges, inland fr eight, commission etc. to determine the ex -factory export price based on best available information. 15. Accordingly, based on the normal value and export price as computed above, there is sufficient prima facie evidence that the normal value of the subjec t goods in the subject country is higher than the ex -factory export price, indicating, that the subject goods are being dumped into the Indian market by the exporters from the subject country. The dumping margins are estimated to be above de minimis. F. Basis of alleged injury 16. Based on information available with the Authority, it is prima facie noted that the Indian industry is getting injured as a result of the alleged dumping in the form of an increased volume of dumped imports in absolute terms and in relative terms. The market share of imports have increased whereas that of the Indian industry has declined. Imports appear to undercut the price of the domestic industry thereby causing price suppression and depression in the domestic market. Further, information also indicates that despite increasing demand, production of the Indian industry has declined significantly, resulting in low -capacity utilisation. While complete information on impact on economic parameters is not available with the Authority at this stage, it is nonetheless observed based on information received that the industry has also suffered an adverse impact on profitability. G. Initiation of Anti -dumping Investigation 17. The Authority takes cognizance of information provided by Highh ope and the DGCI&S import data as Rule 5(4) of the Customs Tariff (Identification, Assessment and Collection of Anti -dumping Duty on dumped articles and for determination of duty) Rules, 1995 (hereinafter referred to as Rules) states as under: ―Notwithstan ding anything contained in sub -rule (1) the designated authority may initiate an investigation suo motu if it is satisfied from the information received from the [Commissioner of Customs] appointed under the Customs Act, 1962 (52 of 1962) or from any other source that sufficient evidence exists as to the existence of the circumstances referred to in clause (b) of sub -rule (3)‖ 18. Keeping in view the rule 5(4) of the AD Rules, the Authority initiates a suo motu Anti -dumping Investigation on imports of ―Tele scopic Channel Drawer Slider‖ from China PR. H. Period of Investigation 19. The period of investigation (POI) for the present investigation is 1st April 2022 to 31st March 2023 (12 months) and the injury period will cover the periods 2019 – 2020, 2020 – 2021, 2021 – 2022 and the POI. I. Subject Country 20. The subject country involved in the present investigation is China PR. J. Procedure 21. Principles as given in Rule 6 of the Rules shall be followed for the present investigation. K. Submission of Informa tion 22. All communication should be sent to the Designated Authority via email at the email addresses adg13 - [email protected], adv11 [email protected], jd12 [email protected] and ad12 [email protected]. It should be ensured that the narrative part of the submission is in searcha ble PDF/MS Word format and data files are in MS Excel format. 23. The known producers/ exporters in the subject country, the Government through its embassy in India, the importers and users in India known to be concerned with the subject goods and the dome stic industry 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. 24. Any other interested party may also make its submissions relevant to the investigatio n in the prescribed form and manner within the time limit set out below on the email addresses mentioned in Para 22 above. 25. Any party making any confidential submission before the Authority is required to make at non -confidential version of the same ava ilable to the other interested parties. 26. Interested parties are further advised to keep a regular watch on the official website of the Designated Authority https://www.dgtr.gov.in/ for any updated information with respect to this investigation. L. Time Limit 27. Any information relating to the present investigation should be sent to the Designated Authority via email at the email addresses adg13 [email protected], adv11 [email protected], jd12 [email protected] and ad12 [email protected] within thirty (30) days from the date of receipt of the notice as per Rule 6(4) of the 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 whi ch it was sent by the Designated Authority or transmitted to the appropriate diplomatic representative of the exporting country. If no information is received within the prescribed time limit or the information received is incomplete, the Authority may rec ord its findings on the basis of the facts available on record 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. M. Submission of information on confidential basis 29. Any party making any confidential submission or providing information on confidential basis before the Authority is required to simultaneously submit a non -confid ential 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. 30. The parties making any submission (including appendices/annex ures attached thereto), before the Authority including questionnaire response, are required to file confidential and non -confidential versions separately. 31. 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. 32. 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 confidential basis. However, in exceptional circumstances, the party submitting the confidential infor mation may indicate that such information is not susceptible to 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 confide ntiality claimed within 7 days of receiving the non -confidential version of the document. 33. 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 re quest 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. 34. Any submission made wi thout a meaningful non -confidential version thereof or without good cause statement on the confidentiality claim shall not be taken on record by the Authority. 35. The Authority on being satisfied and accepting the need for confidentiality of the informati on provided, shall not disclose it to any party without specific authorization of the party providing such information. N. Inspection of Public File 36. In terms of Rule 6(7) of the Rules, any interested party may inspect the public file containing non -confidential version of the evidence submitted by other interested parties. The modality of maintaining public file in electronic mode is being worked out. O. Non-cooperation 37. In case where an interested party refuses access to, or otherwise does not provi de necessary information within a reasonable period, or significantly impedes the investigation, the Authority may record its findings on the basis of the facts available to it and make such recommendations to the Central Government as deemed fit. ANANT SW ARUP, 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.