Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-21032026-271115
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 67]
NEW DELHI, THURSDAY, MARCH 19, 2026/PHALGUNA 28, 1947
1980 GI/2026
(1)
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 19th March, 2026
(Case No. AD(SSR) 01/2026)
(SETU case ID AD/SSR/002/2026)
Subject: Initiation of sunset review investigation concerning imports of Aceto Acetyl Derivatives of Aromatic
or Hetrocyclic Compounds also known as Arylides from China PR.
1. F. No. 7/04/2026-DGTR.—Having regards to 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'), M/s Laxmi Organics Industries Limited (hereinafter referred to as the
'Applicant') has filed an application before the Designated Authority (hereinafter referred to as the 'Authority'),
for initiation of sunset review investigation of anti-dumping duty on the imports of "Aceto Acetyl Derivatives”,
also known as “Arylides" (hereinafter referred to as the 'arylides' or 'product under consideration' or 'subject
goods'), originating in or exported from China PR (hereinafter referred to as "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. In accordance with the
same, the Authority is required to review, on the basis of a duly substantiated request made by or on behalf of
the domestic industry as to whether the expiry of duty is likely to lead to continuation or recurrence of dumping
and injury.
A. Background
3. The original investigation concerning imports of the subject goods from China PR was initiated by the Authority
on 21st August 2020, vide Notification No. 6/28/2020-DGTR. The Authority notified final findings on 19th
August, 2021 recommending definitive antidumping duty on imports of 'Aceto Acetyl Derivatives of aromatic
or hetrocyclic compounds also known as Arylides' from China PR. The definitive antidumping duty was
imposed on the subject goods vide Customs Notification No. 60/2021-Customs (ADD) dated 14th October 2021.
The said duties were levied for a period of 5 years, unless revoked earlier, and are set to expire on 13th October,
2026.
B. Product Under Consideration
4. The product under consideration is "Aceto Acetyl Derivatives of aromatic or heterocyclic compounds" or
"Arylides". As per the original investigation, the product has been defined as under:
"8. The product under consideration in the present investigation is "Aceto Acetyl Derivatives of aromatic or
heterocyclic compounds” or “Arylides”. The following forms of arylides are included within the scope of the
present investigation whilst all other forms are excluded:
a. Acetoacetanilide or AAA;
b. Acetoacet-meta-xylidide or AAMX;
c. Acetoacet-o-anisidide or AAOA;
d. Acetoacet-O-Toluidide or AAOT;
e. Acetoacet-O-chloroanilide or AAOCA."
5. All other forms of arylides are excluded from the product scope. The Authority stated as follows in this regard:
"9.......there can be various kinds of Aceto Acetyl Derivatives of aromatic or hetrocyclic compounds produced and
sold globally. Following are the other known derivatives that are produced in India, however, are beyond the
scope of the product under consideration as these are speciality custom made products, produced in small
volume, as per the specific requirements of the customers and there are no known imports of such arylides:
(i) AAPA - Acetoacet-p-anisidide
(ii) AAPCA - Acetoacet-p-chloroanilide
(iii) NACSA - Acetoacet-p-cresidine-o-sulfonic acid
(iv) AAPCOA - Acetoacet-p-chloro-o-anisidide
(v) Cl-DAEP - N, Nʼ – (2-chloro-1,4-phenylene) bis (3-oxobutaneamide)
(vi) AASP - Pot 4 Acetoacetylaminobenzsulfonate
(vii) AAPT - Aceto Acet P-Toluidide
10. Following are the other known Aceto acetyl derivatives of aromatic or hetrocyclic compounds that are being
imported in small volume, but have not been included in the scope of product under consideration for the reason
being these are also custom-made product types and are not being manufactured by the domestic industry.
i. 2',5'-Dimethoxy-4'-chloro-Acetoacetanilide, Napthol ASIRG and
ii. 5-Acetoacetyl aminobenzimidazolone, 5-AABI"
6. The product under consideration is classified under Chapter 29 of Customs Tariff Act, 1975 under the sub
heading 292429. It is seen that subject goods have been imported under other codes, namely, 29242920,
29242990 and 29242930 during the POI. The customs classification is indicative only and not binding on the
scope of the product under consideration.
7. The applicant has proposed the following PCNs based on product types included within the product scope:
a. Acetoacetanilide or AAA;
b. Acetoacet-meta-xylidide or AAMX;
c. Acetoacet-o-anisidide or AAOA;
d. Acetoacet-O-Toluidide or AAOT;
e. Acetoacet-O-chloroanilide or AAOCA.
8. It has been contended that no significant developments have taken place over the period. The present
investigation being a sunset review investigation, product under consideration remains the same as defined in
the original investigation.
C. Like Article
9. The applicant has submitted that there are no significant differences in the article produced by the applicant and
exported from the subject country. The article produced by the applicant and that imported from the subject
country is comparable in terms of physical and chemical characteristics, manufacturing 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 are technically and commercially
substitutable. The applicant has claimed that the consumers of the product under consideration are using the
subject goods and the article manufactured by the applicant interchangeably. The issue of like article has already
been examined by the Authority in the original investigation. Thus, the product produced by the domestic
industry is like article to the product under consideration produced and imported from the subject country.
D. Subject Country
10. The subject country for the present sunset review investigation is China PR.
E. Period of Investigation
11. The period of investigation (POI) for the present investigation is 1st October 2024 to 30th September 2025 (12
months). The injury investigation period shall cover the period from 2022-23, 2023-24, 2024-25 and the period
of investigation.
F. Domestic Industry and Standing
12. The application has been filed by M/s Laxmi Organic Industries Limited. The applicant has claimed that they
are the sole producer of the subject goods in India. As per information available on record, the production of the
applicant accounts for total Indian production of the like article. The applicant has certified that they have not
imported the subject goods from the subject country nor are they related to any exporter or importer of the
subject goods.
13. In view of the above and on the basis of information available, the Authority is satisfied that the application has
been made by or on behalf of the domestic industry within the meaning of Rule 2(b) and Rule 5(3) of the Rules.
G. Basis of likelihood and continuation or recurrence of dumping
a) Normal Value
14. The Applicant has cited and relied upon Article 15(a)(i) of China's Accession Protocol. The applicant has
submitted that the producers in China PR must be asked to demonstrate that market economy conditions prevail
in the industry producing the subject goods in terms of Para 8(3) of Annexure I of the Rules with regard to the
manufacture, production and sale of the product under consideration. It has been stated by the domestic industry
that in case the responding Chinese producers are not able to demonstrate that their costs and price information
are market driven, the normal value should be calculated in terms of provisions of para 7 and 8 of Annexure I to
the Rules.
15. The domestic industry has claimed that the data relating to cost or price in market economy third country are not
available. Since the subject goods do not have a dedicated customs classification, normal value could not be
determined based on import price from a market economy third country to other country. Further, imports into
India are predominantly from China PR with less than 3% imports from Japan making such imports
unrepresentative. Therefore, the domestic industry has determined normal value for China PR based on price
payable in India considering the best estimates of cost of production in India with reasonable addition for
selling, general and administrative expenses, and reasonable profits. The same has been considered for the
purpose of initiation of the investigation.
b) Export Price
16. The applicant has determined export price for the subject country considering the volume and value of imports
during period of investigation, as per market intelligence. However, for the purposes of the present initiation, the
Authority has considered DGCI&S transaction-wise data. Adjustments have been made for ocean freight,
shipping line expenses, marine insurance, bank charges, port expenses and inland freight expenses.
c) Dumping Margin
17. The normal value and the export price have been compared at ex-factory level, which prima facie shows that the
dumping margin continues to be above the de-minimis level and is significant with respect to the product under
consideration exported from the subject country. Thus, there is prima facie evidence that the product under
consideration from the subject country continues to be dumped in the Indian market by the exporters from the
subject country.
H. Likelihood of continuation or recurrence of injury and casual link
18. Information furnished by the applicant shows that the volume of imports continued to remain significant.
Imports are undercutting the prices of the domestic industry and are having depressing effect on the domestic
industry. The applicant has claimed that due to continued presence of subject goods, their performance has
deteriorated. The applicant is suffering from financial losses, cash loss and negative return on capital employed.
The applicant has also provided information with regard to continued significant presence of dumped and
injurious imports, significant share of market captured by subject imports, price undercutting and price
depressing effect of imports, and vulnerability of the domestic industry as factors establishing likelihood of
dumping and injury to the domestic industry in the event of cessation of antidumping duties.
19. The information provided by the applicant, prima facie, shows likelihood of continuation of dumping from
subject country and consequent injury to the domestic industry in case of cessation of the anti-dumping duties.
I. Initiation of the anti-dumping investigation
20. On the basis of the duly substantiated application filed by or on behalf of the domestic industry, in the form and
manner prescribed and having reached satisfaction based on the prima facie evidence submitted by the domestic
industry, substantiating the likelihood of continuation of dumping and injury to the domestic industry, and in
accordance with Section 9A(5) of the Act read with Rule 23 (1) 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
21. The provisions stipulated in Rule 6 of the AD Rules shall be followed in this investigation.
K. Submission of information
22. All the interested parties are required to register themselves on the SETU Portal (https://setu.dgtr.gov.in). All
communications and submissions from the interested parties shall be uploaded on the SETU portal under their
registered name and SETU case ID AD/SSR/002/2026. It should 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 subject country, the government of subject country through its Embassy in
India, and the importers and users in India who are known to be associated with the product under consideration
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. The interested parties are further advised to keep a regular watch on the official website of the Directorate
General of Trade Remedies at www.dgtr.gov.in and the SETU portal (https://setu.dgtr.gov.in) for any updated
information with respect to this investigation. Interested parties are directed to regularly visit the website of
DGTR (https://www.dgtr.gov.in/) to stay apprised with the further developments in the subject investigation and
remain informed regarding notices that may be issued from time to time regarding questionnaire formats, notice
of oral hearing, corrigendum, amendment notifications, and other such information.
L. Time Limit
27. Any information relating to the present investigation should be uploaded on the SETU portal
(https://setu.dgtr.gov.in) under their registered name and SETU case ID AD/SSR/002/2026. Both versions of
each submission, the confidential version (CV) and the non-confidential version (NCV) must be uploaded in the
respective designated columns within 37 days from the date on which the nonconfidential version of the
application filed by the domestic industry would be circulated by the 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 AD Rules, 1995.
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
through SETU portal only.
29. Any request for an extension must be submitted by the concerned parties through the SETU portal at least one
day before the original deadline specified above. Requests submitted after this time will not be considered.
M. 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. Failure to adhere to the above may lead to rejection of the
response/submissions.
31. The parties making any submission (including Appendices/Annexes attached thereto), before the Authority
including questionnaire response, are required to file confidential and non-confidential versions separately.
32. Such 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' information by the Authority, and
the Authority shall be at liberty to allow the other interested parties to inspect such submissions.
33. The confidential version shall contain all information that is by nature confidential and/or other information
which the supplier of such information claims as confidential. For information that 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 and adequately 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 containing a sufficient and adequate explanation 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 within 7 days from the date of
circulation of the non-confidential version of the documents.
37. 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.
38. 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.
N. Inspection of Public File
39. All non-confidential versions of submissions made by any interested party will be accessible to other interested
parties through their respective login on the SETU portal.
O. Non-Cooperation
40. In case any interested party refuses access to, or 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.
AMITABH KUMAR, 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.
GORAKHA NATH
YADAVA
Digitally signed by GORAKHA
NATH YADAVA
Date: 2026.03.21 10:11:43 +05'30'
Login to read full text