Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-27062025-264193
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 177]
NEW DELHI, THURSDAY, JUNE 26, 2025/ ASADHA 5, 1947
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(Directorate General of Trade Remedies)
INITIATION NOTIFICATION
New delhi, the 26th June, 2025
Case No AD (SSR – 06/2025)
Subject: Initiation of sunset review investigation concerning imports of Methyl
Acetoacetate from China PR.
F. No.7/12/2025-DGTR.—
1. 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 “Methyl Acetoacetate” (hereinafter referred to as the 'product under consideration'
or 'subject goods'), originating in or exported from China PR.
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 of the previous investigations
3. The original investigation concerning imports of the subject goods from China PR and USA was
initiated by the Authority on 7th January 2015 vide notification No.14/7/2014-DGAD. The Authority
notified final findings on 1st April, 2016 recommending definitive antidumping duty on imports of
Methyl Acetoacetate from China PR and USA. The definitive antidumping duty was imposed on the
subject goods vide Customs Notification No. 22/2016-Customs (ADD) dated 31st May, 2016.
4. The Authority initiated 1st sunset review investigation vide Notification F.No.7/40/2020-DGTR
dated 03rd May 2021 against China PR. It was concluded that there was continued dumping of
subject goods from China PR and in the event of expiry of duties, there was likelihood of further
dumping and injury to the domestic industry. The Authority thereafter recommended extension of
the definitive anti-dumping duties vide F.No.7/40/2020-DGTR dated 03rd May 2021. The same was
imposed by Ministry of Finance vide Notification No. 31/2021-Customs (ADD) dated 29th May,
2021. The said duties were levied for a period of 5 years, unless revoked earlier, and are set to expire
on 28th May, 2026.
B. Product under consideration
5. The product under consideration, as in the original investigation, is Methyl Acetoacetate. As per the
sunset review investigation carried out by the Designated Authority, the product has been defined as
under:
“4. The product under consideration in the present petition is Methyl Acetoacetate. Methyl
Acetoacetate (also known as MAA/MAAE/AAME) is a Diketene based Ester or aceto-acetate.
The chemical formula of MAA is C5H8O3 and at 99% purity, it is a clear liquid with a colourless
appearance.
5. Methyl Acetoacetate is classified in Chapter 29 of the Customs Tariff Act under the subheading
29183040, as 'Methyl Acetoacetate". Though the product under consideration has dedicated
customs classification under the Customs Tariff Act, on analyzing the import data, it has been
observed that the product under consideration is being imported under various other codes as
well such as 29146990, 29153910, 29153940, 291 53990, 29183090, 29331990, 29410090 and
29189900. Therefore, the customs classification is indicative only and is in no way binding on
the scope of the investigation. ”
6. 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 previous investigation.
C. Like article
7. The Applicant has claimed that the subject goods, which are being dumped into India, are identical
to the goods produced by the domestic industry. There are no differences either in the technical
specifications, quality, functions or end-uses of the dumped imports and the domestically produced
subject goods and the product under consideration manufactured by the applicant. The two are
technically and commercially substitutable. The present application is for sunset review
investigation for the continued imposition of antidumping duty. The issue of like article has already
been examined by the Authority in the original investigation as well. 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
8. The investigation being a sunset review, the scope of the subject country is confined to the subject
country in the previous investigation i.e. against the subject goods originating in or exported from
China PR.
E. Period of Investigation
9. The period of investigation (POI) for the present investigation is January 2024 to December 2024
(12 Months) and the injury investigation period will cover the periods April 2021 to March 2022,
April 2022 to March 2023 and April 2023 to March 2024 and the POI.
F. Domestic industry and Standing
10. The application has been filed by M/s Laxmi Organic Industries Limited. It has been submitted in
the application that there is another domestic producer of the subject goods in India, namely,
Jubilant Ingrevia Limited. Jubilant Ingrevia Limited has subsequently submitted its support letter. It
is noted that Jubilant Ingrevia Limited started producing the subject goods during the injury period.
11. As per the information available on record, the production of the applicant accounts for a major
proportion of the total domestic production of the like article in India. The applicant has submitted
that it is not related to any exporter or producer in the subject country.
12. In view of the same, on the basis of information available, the Authority is satisfied that the
Application 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.
G. Basis of likelihood and continuation or recurrence of dumping
a. Normal Value for China PR
13. The domestic industry has cited and relied upon Article 15(a) (i) of China's Accession Protocol. The
domestic industry has claimed 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.
14. The domestic industry has claimed that the data relating to cost or price in market economy third
country or recourse to alternative methods are not available. The domestic industry has determined
normal value for China PR based on the best estimates of cost of production in India with reasonable
addition for selling, general & administrative expenses, and profits and the same has been
considered for the purpose of initiation of the investigation.
b. Export Price
15. The applicant has determined the export price for the subject country by considering the volume and
value of imports as per its market intelligence. However, for the purposes of the initiation, the
Authority has considered DG Systems data. Adjustments on account of ocean freight, marine
insurance, bank charges, port expenses, handling charges and inland insurance have been made.
c. 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 continues to be above the de minimis level and significant in
respect of the product under consideration exported from the subject country. Thus, there is
sufficient prima facie evidence that the product under consideration from the subject country
continues to be dumped in the domestic market of India by the exporters from the subject country.
d. Sampling of exporters
17. In view of the potential participation of a large number of exporting producers from the subject
country, the applicant has requested for sampling of exporters. In order to complete the investigation
within the prescribed time limits, and in terms of Rule 17 of the Rules, the Authority may resort to
sampling i.e., limiting its findings either to a reasonable number of interested parties or articles by
using statistically valid samples based on information available at the time of selection or to the
largest percentage of the volume of exports from the subject country.
H. Likelihood of continuation or recurrence of injury and causal link
18. Information provided by the applicant shows that the volume of imports continues to remain
significant and at dumped and injurious price. It is also noted that the performance of the domestic
industry continues to remain adverse. The Applicant has provided information with regard to
continued dumped imports, significant dumping margin, existing surplus capacities, price
undercutting, price depression and vulnerability of the domestic industry as factors establishing
likelihood of continuation/recurrence of dumping and injury to the domestic industry should
antidumping dumping duty is allowed to lapse.
I. Initiation of sunset review of anti-dumping investigation
19. And therefore, in view of the duly substantiated written application by or on behalf of the domestic
industry, and having satisfied itself, on the basis of the prima facie evidence submitted by the
domestic industry, about the likelihood of continuation or recurrence of dumping and injury to the
domestic industry, in accordance with Section 9 A (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 existing duties are likely to lead to
continuation or recurrence of dumping and consequent injury to the Domestic Industry.
J. Procedure
20. Principles, as stated under Rule 6 of the AD Rules, shall be followed in the present investigation.
K. Submission of Information
21. All communication should be sent to the Designated Authority via email at email addresses dd15-
dgtr@gov.in, dir16-dgtr@gov.in and with a copy to advl3-dgtr@gov.in 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. Submissions requiring special software to access the files will not be accepted.
22. The known producers/ exporters in the subject country, the government of the subject country
through their embassies in India, the importers and users in India known to be concerned with the
subject goods are being informed separately to enable them to file all the relevant information in the
form and manner prescribed within the time limits set out below.
23. Any other interested party may also make submission relevant to the present investigation in the
form and manner prescribed within the time limits set out below. Any party making any confidential
submission before the Authority is required to make a non- confidential version of the same
available to the other parties.
24. 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 further processes related to the investigation.
L. Time Limit
25. Any information relating to the present investigation should be sent to the Designated Authority via
email at email addresses dd15-dgtr@gov.in, dir16-dgtr@gov.in and with a copy to advl3-
dgtr@gov.in 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) of
the AD 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 which 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 record its
findings on the basis of the facts available on record in accordance with the AD Rules.
26. 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.
27. 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.
M. Submission of Information of Confidential basis
28. Any party making any confidential submission or providing information on a confidential basis
before the Authority, is required to simultaneously submit a non-confidential version of the same in
terms of Rule 7(2) of the AD Rules. Failure to adhere to the above may lead to the rejection of the
response I submissions.
29. The parties making any submission (including Appendices/Annexures attached thereto), before the
Authority including questionnaire response, are required to file Confidential and Non-Confidential
versions separately. In case, the submission is made in multiple parts, it is instructed to provide an
index table in each part outlining the contents of all parts/emails and documents enclosed. Please
ensure page numbering on all submissions.
30. Where the original documents are in a language other than Hindi and English, the interested parties
are requested to ensure that the true translated version is provided along with the original documents.
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 a confidential basis. However, in exceptional
circumstances, the party submitting the confidential information may indicate that such information
is not susceptible to a summary, and a statement of reasons why summarization is not possible must
be provided to the satisfaction of the Authority. The other interested parties may offer their
comments on the confidentiality claimed within 7 days of receiving the non-confidential version of
the documents.
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 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.
34. Any submission made without a meaningful non-confidential version thereof or a good cause
statement on the confidentiality claim shall not be taken on record by the Authority.
35. The interested parties can offer their comments on the issues of confidentiality claimed by the
domestic industry within 7 days from the date of circulation of the non-confidential version of the
documents in terms of relevant paragraphs of this initiation notification.
36. 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
37. A list of registered interested parties will be uploaded on DGTR's website along with the request
therein to all of them to email the non-confidential version of their submissions to all other interested
parties. The non-confidential version of the questionnaire response or other submissions should
preferably be circulated to all other interested parties on the same day and, in no case, later than the
day following the filing of submissions on a confidential basis. Failure to circulate a non-
confidential version of submissions/responses/information might lead to the consideration of an
interested party as non-cooperative.
O. Non-Cooperation
38. In case any interested party refuses access to and otherwise does not provide necessary information
within a reasonable period, or significantly impedes the investigation, the Authority may declare
such interested party as non-cooperative and record its findings based on the facts available to it and
make such recommendations to the Central Government as deemed fit.
SIDDHARTH MAHAJAN, Designated Authority