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EXTRAORDINARY
PART I —Section 1
PUBLISHED BY AUTHORITY
No. 262 NEW DELHI, THURSDAY , SEPTEMBER 2 6, 2024/ ASVINA 4, 1946
CG-DL-E-27092024-257539
29182910, 29182990, 29183090, 29189990, 29202100, 29202910, 29202930,
29202990, 29209000, 29242990, 29309099, 29336990, 38112900, 38119000,
MINISTRY OF COMMERCE AND INDUSTRY
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 26th September, 2024
(Case No. AD(OI) 21/2024)
Subject: Initiation of anti -dumping investigation concerning imports of “certain Antioxidants”
originating in or exported from China PR and Singapore.
1. F. No. 6/23/2024 -DGTR .––Having regard to the Customs Tariff Act, 1975 as amended from
time to time (hereinafter referred to as the “Act”) and the Customs Tariff (Identification,
Assessment and Collection of Anti -dumping duty on Dumped Articles for Determination of
Injury) Rules, 1995 as amended from time to time (hereinafter referred to as the “Rules” or
the “Anti -dumping Rules”), M/s Vinati Organics Limited (hereinafter referred to as “VOL”
or “applicant” or “domestic industry”) has filed an application before the Designated
Authority (hereinafter also referred to as the “Authority”) for initiation of an anti -dumping
investigation concerning imports of “certain Antioxidants” (hereinafter referred to as
“product under consideration” or “PUC” or “subject goods”), originating in or exported from
China PR and Singapore.
2. The applicant has alleged that dumped imports of the subject goods from China PR and
Singapore are causing injury to the domestic industry and has requested for the imposition of
anti-dumping duties on the import of the subject goods from the subject countries. The
applicant has also sought interim duties on imports of subject goods from subject countries.
A. Product Under Consideration (PUC)
3. The product under consideration in the present investigation is certain types of Antioxidants
conforming to the following CAS nos., or their equivalent:
a. 6683 -19-8 also known as Antioxidant 1010 and its equivalents. The chemical name
is Pentaerythritol tetrakis(3 -(3,5-di-tert-butyl -4-hydroxyphenyl) propionate)
b. 2082 -79-3 also known as Antioxidant 1076 and its equivalents. The chemical name
is Octadecyl -3-(3,5-di-tert-butyl -4-hydroxyphenyl) -propionate
c. 31570 -04-4 also known as Antioxidant 168 and its equivalents. The chemical
name is Tris(2,4 -di-tert butylphenyl) phosphite.
d. 23128 -74-7 also known as Antioxidant 1098 and its equivalents. The chemical
name is N,N'-hexane -1,6-diylbis(3 -(3,5-di-tert-butyl -4
hydroxyphenylpropionamide))
e. 125643 -61-0 also known as Antioxidant L135 or 1135 its equivalents. The
chemical name is Benzenepropanoic acid, 3,5 -bis (1,1 -dimethylethyl) -4-hydroxy -,
C7-9-branched alkyl esters
f. Blends of antioxidants referred to in (a) to (e).
g. Blends of subject antioxidants referred to at (a) to (e) with any other product if the
resultant blend has 50% or more of the subject antioxidants.
4. The applicant has submitted that the different forms of Antioxidants considered within the
PUC definition constitute one product. It is seen that while the specific composition and
properties of these antioxidants may differ to meet specific end requirements, these subject
antioxidants are primarily used as additives in plastics and share a common functionality.
Further, the production equipment, the production process and the resultant characteristics are
largely the same. While additional raw materials are specific to each antioxidant, all subject
antioxidants use metilox as a base raw material. Antioxidants are closely interlinked in trade
and usage.
5. Antioxidants are majorly used in petrochemical companies producing plastics like
polyolefins, styrenics, PVC, etc. as the stabiliser/ additives. They are further used during the
manufacturing of plastic component using base raw materials like polyolefins, styrenics, PVC,
etc. The subject goods are also used in the rubber, oil, coatings and, lubricant industry to
provide long term stability and durability.
6. Antioxidant additives in polymers are essential to prevent oxidation. Plastic products are
manufactured at high temperatures which compromises the raw polymers, as they are exposed
to a process called thermal oxidation. For the polymer to remain stable, antioxidants are
introduced during the manufacturing process.
7. The product under consideration falls under Chapter 29 and 38 of the Customs Tariff Act,
1975. The PUC is mainly entering the Indian market under the following HS codes:
29054290, 29071990, 29072990, 29181990, 29182910, 29182990, 29183090, 29189990,
29202100, 29202910, 29202930, 29202990, 29209000, 29242990, 29309099, 29336990,
38112900, 38119000, 38123910 and 38123990. The customs classification is only indicative
and is not binding on the scope of the product under consideration.
8. The applicant has proposed considering the types of Antioxidants as different PCN, based on
the CAS nos.:
a. 6683 -19-8 also known as Antioxidant 1010 and its equivalents.
b. 2082 -79-3 also known as Antioxidant 1076 and its equivalents
c. 31570 -04-4 also known as Antioxidant 168 and its equivalents
d. 23128 -74-7 also known as Antioxidant 1098 and its equivalents
e. 125643 -61-0 also known as Antioxidant L135 or 1135 its equivalents
f. Blends of antioxidants referred to in (a) to (e)
g. Blends of subject antioxidants referred to at (a) to (e) with any other product if the resultant
blend has 50% or more of the subject antioxidants.
9. The interested parties are advised to furnish their comments/ suggestions on the proposed
PCN methodology within 30 days from the date of initiation of this investigation. The
interested parties are required to substantiate their comments with relevant evidence.
B. Like Article
10. The applicant has stated that there is no known difference in the product produced by the
domestic industry and the product exported from the subject countries. The article produced
by the applicant and that imported from the subject countries are 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 imported subject goods and the article manufactured by the applicant are
technically and commercially substitutable. The applicant has claimed that consumers of the
subject goods are using the imported subject goods and the article manufactured by the
applicant interchangeably. Thus, for the purposes of the present investigation, the article
produced by the applicant has been considered as “like article” to the product being imported
from subject countries.
C. Subject Countries
11. The subject countries in the present investigation are China PR and Singapore.
D. Period of Investigation (POI)
12. The applicant has proposed July 2023 – March 2024 (9 months) as the period of
investigation. However, the Authority has considered the period of investigation (POI) for the
present investigation from 1st July 2023 to 30th June 2024 (a period of 12 months). The injury
investigation period will cover the periods 2020 – 2021, 2021 – 2022, April 22 – June 2023
and the period of investigation.
E. Domestic Industry and Standing
13. The application has been filed by M/s Vinati Organics Limited (VOL). However, the
production of the subject goods was undertaken by Veeral Additives Pvt Ltd (VAPL), that set
up a new plant, commenced trial production in April 2020 and commercialised production in
October 2022. The NCLT approved the proposed scheme of amalgamation between VAPL
and VOL in December 2023, retrospectively from April 2021. It has been submitted that
records for the pre -merger period, i.e., April 2020 - March 2021 is also with VOL.
14. There are two other producers in India i.e., HPL Additives Limited and Krishna
Antioxidants Pvt Ltd. While, Krishna Antioxidants Pvt Ltd. is also a new producer which
started production in 2021, HPL Additives Limited (HPL) is a producer who has been in
existence even before the injury period. However, the applicant has claimed that HPL
primarily caters to the export market and has very limited presence in the Indian market.
15. The applicant has further claimed that while it had imported some quantities of the subject
goods from China PR in 2019 for testing purposes, it has neither imported the subject goods
from the subject countries in the POI nor is it related to any exporter or producer from the
subject countries or importers of the PUC in India.
16. On the basis of information available and after due examination, the Authority notes that
production by the applicant constitutes “a major proportion” of total Indian production. Thus,
the applicant constitutes domestic industry within the meaning of Rule 2(b), and the
application satisfies the requirements of Rule 5(3) of the anti -dumping Rules.
F. Basis of Alleged Dumping
a. Normal Value for China PR
17. 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.
18. The domestic industry has thus determined normal value for China PR based on the import
price into India from Korea RP at ex -factory levels, which are significant in relation to total
imports of the subject goods into India and in relation to imports from China PR and are being
imported at a fair market price . Alternatively, the domestic industry has also determined
normal value based on the best estimates of cost of production in India as per the best
information available with reasonable addition for selling, general & administrative expenses,
and profits. Normal value for China PR, for the purpose of initiation of the investigation, has
been constructed based on the best estimates of the cost of the production of the domestic
industry after duly adjusting the selling, general and administrative expenses and profits.
b. Normal Value for Singapore
19. The domestic industry has claimed that efforts were made to get information/evidence of the
price of the subject goods in the domestic market of Singapore, however, data relating to price
in Singapore was not available. This information is also not available with the Authority from
any public source. The normal value for Singapore has been considered on the basis of best
estimates of cost of production of subject goods in India along with associated selling, general
& administrative expenses, and profits.
c. Export Price
20. The CIF price reported for imports into India, as per DG System data has been considered
for the determination of export price. Adjustments have been made for ocean freight, marine
insurance, handling charges, port expenses and bank charges. There is sufficient prima facie
evidence with regard to the net export prices claimed by the applicant.
d. Dumping Margin
21. The normal value and export price have been compared at ex -factory level, which prima
facie shows that dumping margin is not only above the de-minimis level but also significant.
There is sufficient prima facie evidence that the subject goods from the subject countries are
being dumped into the Indian market by the exporters from the subject countries.
G. Evidence of Injury and Causal link
22. Information furnished by the domestic industry has been considered for the assessment of
injury to the domestic industry. The applicant has provided sufficient prima facie evidence
with respect to the injury suffered by it because of the dumped imports. The imports from
subject countries have increased throughout the injury period, and especially in the POI.
Imports in relative terms are significant, despite existence of sufficient production capacities
with the domestic industry. The landed price of imports is below even the level of cost of
production and has forced the domestic industry to sell at significant financial losses. Market
share of the domestic industry is quite low while the capacity with the domestic industry
remained grossly underutilised. The level of inventories is significant despite its low level of
production and sufficient demand in the market.
23. The domestic industry has also contended that in case the domestic industry is not treated as
an established industry for the purpose of evaluating material injury, then, in the alternative,
the domestic industry may be treated as an establishing industry. In that case, dumping of the
subject goods has materially retarded establishment of the domestic industry in the Country. If
the applicant’s performance is considered only for the period after commercialisation of
production, imports have increased despite commercialisation of significant production. The
landed price of imports is below the level of cost of production preventing the domestic
industry from achieving the target prices. Imports have prevented the domestic industry from
increasing its production and sales. The domestic industry has been incurring losses and
negative return on investment. The performance of the domestic industry is much below the
levels projected by the applicant .
24. The Authority notes that there is sufficient prima facie evidence of injury being caused to
the domestic industry due to dumped imports from the subject countries .
H. Initiation of Anti -Dumping Investigation
25. On the basis of the duly substantiated written application filed by or on behalf of the
domestic industry, and having satisfied itself, on the basis of the prima facie evidence
submitted by the applicant, concerning the dumping of the subject goods originating in or
exported from the subject countries, injury to the domestic industry and the causal link
between such alleged dumped imports and injury, and in accordance with Section 9A of the
Act read with Rule 5 of the AD Rules, the Authority, hereby, initiates an anti -dumping
investigation to determine the existence, degree and effect of the dumping with respect to 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
26. The principles as given in Rule 6 of the Rules will be followed for the present investigation.
J. Submission of Information
27. All communication should be sent to the Designated Authority via email at the email
addresses dd15 [email protected] and dd19 [email protected] with copy to adv11 [email protected] and
adv12 [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.
28. The known producers/ exporters in the subject countries, the Government of the subject
countries through their embassies in India, the importers and users in India who are known to
be concerned with the subject goods and the domestic industry are being informed separately
to enable them to file all the relevant information in the form and manner prescribed and
within the time -limit set out in this initiation notification.
29. Any other interested party may also make its submissions 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 limit set out in this
initiation notification.
30. Any party making any confidential submission before the Authority is required to make at
non-confidential version of the same available to the other interested parties.
31. Interested parties are further advised to keep a regular watch on the official website of the
DGTR, i.e., https://www.dgtr.gov.in/ for any updated information with respect to this
investigation.
K. Time Limit
32. Any information relating to the present investigation should be sent to the Designated
Authority via email at the email addresses dd15 [email protected] and dd19 [email protected] with
copy to adv11 [email protected] and adv12 [email protected] within thirty (30) days from the date on
which the non -confidential version of the application filed by 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 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
based on the facts available on record and in accordance with the Rules.
33. 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.
L. Submission of Information on Confidential Basis
34. Any party making any confidential submission or providing information on 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 Rules and the Trade Notices issued in this regard.
Failure to adhere to the above may lead to rejection of the response / submissions.
35. 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.
36. 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.
37. 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
information which are 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.
38. 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 information 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 interested parties
including the domestic industry can offer their comments on the confidentiality claimed
within 7 days of receiving the non -confidential version of the document.
39. 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 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.
40. Any submission made without a meaningful non -confidential version thereof or without
good cause statement on the confidentiality claim shall not be taken on record by the
Authority.
41. The Authority, on being satisfied and accepting the need for confidentiality of the
information provided, shall not disclose it to any party without specific authorization of the
party providing such information.
M. Inspection of Public File
42. A list of registered interested parties will be uploaded on the 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. Failure to circulate non -confidential version of submissions might
lead to action under Section O of this initiation notification.
43. 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.
N. Non-cooperation
44. 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 subsequent time period provided through separate communication, 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
recommendations to the Central Government as it deems fit.
DARPAN JAIN , Designated Authority
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