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Core Purpose

Initiation notification of an anti-dumping investigation concerning imports of "Sulphur Black" originating in or exported from China PR, under the Customs Tariff Act, 1975 and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.

Detailed Summary

The Directorate General of Trade Remedies (DGTR), Department of Commerce, Ministry of Commerce and Industry, initiated an anti-dumping investigation (Case No. AD(OI)-08/2023, F.No.6/08/2023-DGTR) dated 20th September 2023 concerning imports of "Sulphur Black" originating in or exported from China PR, following an application filed by M/s Atul Ltd. on behalf of the domestic industry under the Customs Tariff Act, 1975 (as amended in 1995) and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. The product under consideration, imported under HS Code 32041967 of Chapter 32 of the First Schedule to the Customs Tariff Act, 1975 (with imports also occurring under sub-headings 32041196, 32041218, 32041911, 32041925, 32041958, 32041964, 32041969, 32041979 and 32049000), is used mainly for dyeing cellulose fiber, viscose staple fiber, yarn, paper and leather, and is produced in various strengths (BR 100, BR 200, BR 220 as standard strength, BR 240, BR 260, BR 160) that are interchangeable. The application was supported by Mahadev Dyes & Chemicals, Khekra Chemicals and Allied Products Pvt. Ltd., APCO Dye Chem Pvt. Ltd., and Maulik Dyechem, with the applicant accounting for more than 70% of Indian production, satisfying domestic industry standing under Rule 2(b) and Rule 5(3) of the Rules. The Authority determined normal value based on the price paid or payable in India per para 7 of Annexure I to the Rules, computed export price using DG Systems data adjusted for ocean freight, marine insurance, commission, inland freight, port expenses and bank charges, and found prima facie evidence of dumping above the de-minimis level and resultant material injury to the domestic industry, invoking Section 9A of the Act read with Rule 5 of the Rules to initiate the investigation. The period of investigation (POI) was set as April 2022 to March 2023, with the injury investigation period covering financial years 2019-20, 2020-21, 2021-22 and the POI; interested parties were given 30 days from initiation to comment, with submissions to be sent to designated DGTR email addresses, and confidentiality provisions governed by Rule 7(2) of the AD Rules.

Full Text

EXTRAORDINARY PART I—Section 1 PUBLISHED BY AUTHORITY No. 228] NEW DELHI, WEDNES DAY, SEPTEMBER 20, 2023/BHADRA 29, 194 5 CG-DL-E-21092023-248863 CG-DL-E-21092023-248863 1 बीआर 220 100% 220/220*100 2 बीआर 100 45% 100/220*100 3 बीआर 240 109% 240/220*100 4 बीआर 200 91% 200/220*100 5 बीआर 260 118% 260/220*100 6 बीआर 160 73% 160/220*100 न , , 14. , और न न 1 र 7 न र , रण न र न र र र र रण न न र रन र न न MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce ) (DIRECTORATE GENERAL OF TRADE REMEDIES ) INITIATION NOTIFICATION New Delhi , the 20th September , 2023 (Case No. AD(OI) - 08/2023) Subject: Initiation of anti -dumping investigation c oncerning imports of "Sulphur Black" originating in or exported from China PR. F.No.6/08/2023 -DGTR—1. M/s Atul Ltd. (hereinafter referred to as the 'applicant') has filed an application before the Designated Authority (hereinafter referred to as the Author ity), on behalf of the domestic industry, in accordance with the Customs Tariff Act, 1975 as ame nded in 1995 a nd thereafter (hereinafter referred as the Act) and the Customs Tariff (Identification, Assessment and Collection of Anti -dumping Duty on Dumped A rticle s and for Determination of injury) Rules, 1995, as amended from time to time (hereinafter referred as th e "Rules"), for initiation of an anti -dumping investigation concerning imports of "Sulphur Black" (hereinafter referred to as the' subject goods' or the ' product under consideration') originating in or exported from China (hereinafter referred to as 'the s ubject country'). 2. The applicant has alleged that material injury is being caused to the domestic industry due to the dumped imports, originating or exported from the subject country and has requested the imposition of anti -dumping duties on the imports of the subject goods from the subject country. A. PRODUCT UNDER CONSIDERATION 3. The product under consideration is "Sulphur Black" originating in or exported from China PR. Sulphur Black is mainly used for dying cellulose fiber, viscose staple fiber and yarn. It i s produced either in a powder form or in a liquid form. Regardless of th e form it is produced in, it can be easily converted from one form to another without significant additional costs. The product under consideration is produced in various strengths. Th ese strengths are described as BR 100, BR 200, BR 220, BR 240, etc. BR 2 20 is designated as standard strength. Though the product is produced in various strengths , they can be interchangeably used. 4. Sulphur Black is primarily used for dyeing cellulose fiber . It is also used for dyeing viscose staple fiber and yarn, paper and l eather. The primary application of the product under consideration is, hence, in the textile, paper and leather sectors. 5. The product under consideration is being imported from the subje ct country under HS Code 32041967 of Chapter 32 of the First Schedule to the Customs Tariff Act, 1975. However, the applicant claims that import of the PUC has also taken place in other sub -headings as well , i.e. 32041196, 32041218, 32041911, 32041925, 320 41958, 32041964 , 32041969, 32041979 and 32049000. The customs classifi cation is only indicative and the same is not binding on the scope of the investigation. 6. The interested parties in the subject investigation may provide their comments on the PUC as well as their proposal for the construction of PCNs, if any, within 30 da ys from the date of initiation of this investigation. Import Data source and methodology for calculation of volume 7. The Authority has received the transaction -wise import data from the DG System. The Autho rity has relied on the DG System data to compute import volume, value, and landed price. It may be noted that the imported product is of various strengths such as BR 220, BR 200 etc. However, to arrive at the equivalent volume, the applic ant has proposed t hat imported volumes be converted into th e most commonly traded strength of BR 220. The following methodology has been adopted for the conversion of the import data: - SN Import Types Strength Formulas 1 BR 220 100% 220/220*100 2 BR 1 00 45% 100/220*100 3 BR 240 109% 240/220*100 4 BR 200 91% 200/220*100 5 BR 260 118% 260/220*100 6 BR 160 73% 160/220*100 8. The Authority may further examine the need for the adoption of any other methodology for the conversion of data or the need for PC N-wise analysis bas ed on the comments from the other interested parties. B. LIKE ARTICLE 9. The applicant has claimed that the subject goods, which have been alleged to be dumped in India, are identical to the goods produced by the domestic industry. There are no known difference s between the subject goods produced by the Indian industry and the product under consideration produced and exported from the subject country. The two products are comparable in terms of essential product characteristics such as physica l and chemical characteristics, manufacturing process and technology, functions and use s, product specifications, pricing, distribution and marketing and tariff classification of the goods. Consumers are using the two interchangeably. The Authority notes t hat the two are tec hnically and commercially substitutable. Hence, for the purposes of the present investigation, the subject goods produced by the applicant are being treated by the Authority as 'like articles' to the subject goods being imported from the subject country. C. SUBJECT COUNTRY 10. The subject country in the present petition is China PR. D. DOMESTIC INDUSTRY AND STANDING 11. The applicant has claimed that they have neither imported the PUC nor is related to any producer/exporter of the product under consid eration in China PR or any importer of the subject goods in India. Further, the application has also been supported by Maha dev Dyes & Chemicals, Khekra Chemicals and Allied Products Pvt. Ltd., APCO Dye Chem Pvt. Ltd., and Maulik Dyechem. Considering the in formation on record , the applicant accounts for a major proportion ( more than 70%) of Indian production. In view of the ab ove and after examination, the Authority notes that the applicant constitutes eligible domestic industry in terms of Rule 2 (b), and the application sat isfies the criteria of standing in terms of Rule 5(3) of the Rules supra. E. BASIS OF ALLEGED DUMPING Normal Value 12. The applicant has claimed that in terms of Article 15(a)(i) of China's Accession Protocol, the normal value for Chinese prod ucers may be determ ined based on costs or domestic selling prices prevailing in China, only if the responding Chinese producers demonstrate that their cost and price information are based on market driven principles and allow for fair comparison in terms o f Para 1 to 6 of An nexure I to ADD Rules, failing which, normal value for Chinese producers must be determined based on para 7 and 8 of Annexure I to the rules. 13. The applicant has claimed the normal value on the basis of the consumption price of the product under consideratio n imported into Turkey from various countries globally, excluding China PR. 14. For the purpose of initiation, and in accordance with para 7 of annexure 1 of the rules, the Authority has considered the normal value on the basis of the price paid or payable in India. The Authority has considered the cost of production of the domestic i ndustry as adjusted with reasonable addition for profit for the purpose of determining normal value. Export price 15. The applicant has claimed the CIF price report ed as per market in telligence for the determination of export price. However, the Authority has taken into account DG systems data for computing the export price of the subject goods from China into India. The export price has been adjusted with ocean frei ght, marine insuran ce, commission, inland freight expenses, port expe nses and bank charges. Dumping margin 16. The normal value and the export price have been compared at the ex -factory level, which prima facie shows that the dumping margin is above the de-minimus level and is s ignificant in respect of the product under consi deration from the subject country. Thus, there is sufficient prima facie evidence that the product under consideration from the subject country is being dumped in the Indian market by the e xporters from the s ubject country. F. INJURY AND CAUSAL LINK 17. Information furnished by the applicant has been considered for assessment of injury to the domestic industry. The applicant has furnished evidence regarding the injury that took place as a result of the alleged dumpin g in the form of an increased volume of dumped imports in absolute terms and in relation to production or consumption in India, price undercutting and price suppressing effect on the domestic industry. The applicant has claimed that its performance has bee n adversely impacted in respect of prod uction, sale, profitability, return on investment, accumulation of inventories and capacity utilization as a result of the increase in imports of the product under consideration at an injurious pric e for the domestic industry. There is sufficient prima fac ie evidence that the injury is being caused to the domestic industry by dumped imports from the subject country. G. INITIATION OF ANTI -DUMPING INVESTIGATION 18. On the basis of the duly substantiated writt en application by t he domestic industry, and having sati sfied itself, on the basis of prima facie evidence submitted by the domestic industry, about the dumping of the product under consideration originating in or exported from the subject country, injury to the domestic ind ustry 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 dumpin g in respect of the product un der consideration originating in or exported from the subject country and to recommend the amount of anti -dumping duty, which if levied, would be adequate to remove the injury to the domestic industry. H. PERIO D OF INVESTIGATION 19. The applicant had proposed t he period of investigation as 1st January 2022 to 31st December 2022. However, the period of investigation (POI) adopted by the Authority for the present investigation is from April 2022 to March 2023. The inj ury investigation p eriod covers the financial y ears 2019 -20, 2020 -21, 2021 -22 and the POI. I. PROCEDURE 20. The principles as stated under Rule 6 of the AD Rules, 1995 shall be followed in the present investigation. J. SUBMISSION OF INFORMATION 21. All communication sho uld be sent to the Designated Authority via email at email addresses dd15 - [email protected] and [email protected] with a copy to adv11 -dgtr@g ov.in and [email protected] , 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. 22. The kno wn producers/exporters in the subject country, the Government of the s ubject 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 fi le all the relevant information within the time lim its mentioned in this notification. All such information must be filed in the form and manner as prescribed by this initiation notification, the AD Rules, 1995 and the applicable trade notices issued by the Authority. 23. Any other interested party may also ma ke a submission rel evant to the present investigation in the form and manner as prescribed by this initiation notification, the AD Rules, 1995 and the applicable trade notices issued by the Authority wi thin the time limit mentioned in this initiation notif ication. 24. 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. 25. Interested parties are further advised to keep a regular watch on the official website of the Des ignated Authority http://www.dgtr.gov.in/ for any updated information with respect to this investigation. K. TIME LIMIT 26. Any information relating to the present investigati on should be sent to the Designated Authority via email at email addr ess dd15 [email protected] n and jd13 [email protected] with a copy to adv11 [email protected] within 30 days from the date on which it was sent by the Designated Authority or transmitted to the appropriate diplomatic representative of the exporting country as per Rule 6(4) o f the AD Rules. If no information is received within the stipulated time limit or the information received is incomplete, the Authority may record its findings on the basis of the facts a vailable on record and in accordance with the AD Rules, 1995. 27. All th e interested partie s 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 l imit as stipulated in this notification. 28. Where an interested party see ks 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 CONF IDENTIAL BASIS 29. Wher e any party to the present investigation makes confidential submissions or provides information on a confidential basis before the Authority, it is required to simu ltaneously submit a non -confidential version of such information in terms of Rule 7(2) of th e AD Rules and in accordance with the relevant trade notices issued by the Authority in this regard. 30. Such submissions must be clearly marked as "confidential" or "non -confidential" at the top of each page. Any submission which has been m ade to the Authorit y 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. 31. The non -confidential version of the informa tion filed by the i nterested parties should essentially 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 adequatel y summarized depend ing upon the information on which confidentiality is claimed. 32. 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 circ umstances, the party submitting the confidential information may indicate that such information is not susceptible to a summary, and a statement of reasons containing a sufficient and adequate explanation in terms of Rule 7 of the AD Rul es, 1995 and approp riate trade notices issued by the Authority, as to why such summarization is not possible, must be provided to the satisfaction of the Authority. The other interested parties can offer their comments on the confidentially claimed within 7 days of receiving the non -confidential version of the document. 33. Any submission made without a meaningful non -confid ential version thereof or without a sufficient and adequate cause statement in terms of Rule 7 of the AD Rules, 1995 and appropriate trade notices issued by t he Authority, on the confidentiality claim shall not be taken on record by the Authority. M. 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 t hem to email the no n-confidential version of their submissions to all other interested parties. N. NON -COOPERA TION 35. In case any interested party refuses access to and otherwise does not provide necessary information within a reasonable period or within the tim e 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 on the basis of the facts available to it and make such re commendations to th e Central Government as deemed fit. ANANT SWARUP , Designated Authority ploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi -110064 and Published by the Controller of Public ations, Delhi -110054.

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