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Core Purpose

Initiation notification by the Directorate General of Trade Remedies commencing an anti-dumping investigation, under Section 9A of the Customs Tariff Act, 1975 and Rule 5 of the Anti-Dumping Rules, 1995, concerning imports of Liquified Natural Gas Fuel Tanks originating in or exported from China PR.

Detailed Summary

The Ministry of Commerce and Industry, Department of Commerce, Directorate General of Trade Remedies (the Authority), by Initiation Notification dated 24th December 2024, Case No. AD(OI)-40/2024, F. No. 6/43/2024-DGTR, initiates an anti-dumping investigation under Section 9A of the Customs Tariff Act, 1975 read with Rule 5 of the Customs Tariff (Identification, Assessment, and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, concerning imports of 'Liquified Natural Gas Fuel Tank (LFT)', also known as 'Liquid Fuel Tank', originating in or exported from China PR. The investigation follows an application by M/s Inox India Limited (the applicant), which alleges that dumped imports are causing material injury and material retardation to the domestic industry; the applicant is found to constitute the eligible domestic industry under Rule 2(b) and to satisfy the standing criteria of Rule 5(3), accounting for more than 90% of domestic production, with M/s Cryogas Equipment Private Limited identified as the only other domestic producer. The product under consideration is classified under HS code 7311 00 90, with capacities ranging from 200 to 990 Litres at 16 to 24 bar pressure rating, and is proposed to be classified into four product control number (PCN) categories by volume (200-300, 301-500, 501-750, and above 751 litres). The period of investigation (POI) is fixed at 1st April 2023 to 30th June 2024 (15 months), with an injury examination period covering 1st April 2020 to 31st March 2021, 1st April 2021 to 31st March 2022, 1st April 2022 to 31st March 2023, and the POI. The normal value for Chinese producers is to be determined under Article 15(a)(i) of China's Accession Protocol and paragraphs 7 and 8 of Annexure-I to the Anti-Dumping Rules, 1995. Interested parties must submit information to the Designated Authority via specified email addresses within 30 days, following procedures under Rule 6 and Rule 7(2) of the AD Rules, with confidential and non-confidential submissions required to be filed separately.

Full Text

EXTRAORDINARY PART I —Section 1 PUBLISHED BY AUTHORITY No. 345] NEW DELHI, TUE SDAY , DEC EMBER 24, 2024 /PAUSA 3 , 194 6 CG-DL-E-29122024-259625 [email protected] ,dd16 [email protected] और dd12 [email protected] पर ईमेल के माध्यम से consultant [email protected] , dd16 [email protected] और dd12 [email protected] पर ईमेल के MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (Directorate General of Trade Remedies) INITIATION NOTIFIC ATION New Delhi, the 2 4th December , 2024 CASE No. AD (OI) - 40/2024 Subject: Initiation of anti -dumping investigation concerning imports of “Liquified Natural Gas Fuel Tank (LFT)” originating in or exported from China PR. 1. F. No. 6/ 43/2024-DGTR. ––Having reg ards 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, a s amended from time to time (hereinafter referred to as the ‘Rules’), M/s Inox India Limited (hereinafter referred to as the ‘applicant’) has filed an application before the Designated Authority (hereinafter referred to as the ‘Authority’), for initiation of an anti -dumping investigation on imports of ‘Liquified Natural Gas Fuel Tank (LFT)’ (hereinafter referred to as the ‘product under consideration’ or ‘subject goods’), originating in or exported from China PR (hereinafter referred to as the ‘subject coun try’). 2. The applicant has alleged that dumping of the product under consideration from the subject country is causing material injury and material retardation to the domestic industry in the country and has requested for the imposition of anti -dumping dutie s on the imports of the product under consideration from the subject country. A. PRODUCT UNDER CONSIDERATION 3. The product under consideration in the present application is ‘Liquified Natural Gas Fuel Tank’, also known as ‘Liquid Fuel Tank’ or ‘LFT’. A Liquifi ed Natural Gas Fuel Tank is a double walled cryogenic storage tank for liquefied natural gas (particularly methane gas). Unit of measurement 4. The product is usually traded in pieces (numbers). Therefore, ‘number/piece’ has been considered as the unit of measurement. Uses 5. LNG fuel tanks are used for maintaining the temperatures of liquids contained in them. They are, in simpler terms, double walled vacuum cylinders with superinsulation used for the purpose of carrying fuel inside them that is used for combustion in commerci al vehicles such as trucks. They have heat exchanger coil on one end that is used to vaporise the liquid fuel into vapors so that the same reaches the engine easily and can be used for combustion. The product comes in capacities varying from 200 Litres to 990 Litres at 16 bars to 24 bars pressure rating. 6. LNG Fuel Tanks are used in large vehicles such as trucks and other vehicles. Their primary usage is for containing and carrying methane gas which power vehicle engine. These vessels are used to store fuel for on road & off road vehicles. As the fuel is being stored in liquid form, to use the same at engine, it needs to be converted into gaseous form. The function of conversion is being done with the help of heat exchanger installed in the product. Tariff cl assification 7. The product under consideration is being imported under HS code – 7311 00 90. The customs classification is indicative only and is in no way binding on the scope of the PUC in the present investigation. 8. The domestic industry has proposed the following product control numbers (PCNs) for the product under consideration based on the volume of the LNG tanks in the present investigation: S. No. Proposed PCN PCN Code 1 From 200 to 300 litres A 2 From 301 to 500 litres B 3 From 501 litres to 750 l itres C 4 More than 751 litres D 9. The parties to the present investigation may provide their comments on the scope of PUC and proposed PCNs, if any, within 15 days of circulation of the intimation of initiation of the investigation. B. LIKE ARTICLE 10. The appli cant 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 differences in the technical specifications, quality, functions and end use of the two products. The Authority notes that the two are prima facie technically and commercially substitutable. Therefore, for the purpose of this investigation, the subject goods produced by the applicant in India are being treated as ‘like article’ to the subject goods being imported from the subject country. C. SUBJECT COUNTRY 11. The subject country in the present investigation is China PR . D. PERIOD OF INVESTIGATION 12. The applicant has proposed 15 months as period of investigation (POI) stating that consideration of July 2023 – June 2024 as the period of investigation would create significant practical difficulties for the applicant and also submitted that there is no material difference in the merits of the case for both the periods. In view of this, the proposed POI has been adopted by the Authority for the present investigation i.e., 1st April 2023 to 30th June 2024 (15 months). The injury examination period covers the periods 1st April 2020 – 31st March 2021, 1st April 2021 – 31st March 2022, 1st April 2022 – 31st Marc h 2023 and the POI. E. DOMESTIC INDUSTRY & STANDING 13. The application has been filed by M/s Inox India Limited. It has been submitted in the petition that there is one another producer of the subject goods in India, namely M/s Cryogas Equipment Private Limited . Further, as per the information available on record, the production of the applicant accounts for major proportion (more than 90%) of the total domestic production of the like article in India. It is also submitted that the applicant has neither imported the subject goods from the subject country nor is related to any exporter or producer in the subject country or any importer in India. 14. On the basis of the information available on record, Authority is prima facie satisfied that the applicant, namely M/s Inox India Limited constitute eligible domestic industry within the meaning of Rule 2(b) of the Rules and the application satisfies the criteria of standing in terms of Rule 5(3) of the Rules. F. BASIS FOR ALLEGED DUMPING a. Normal value for China PR 15. The applica nt has claimed that in terms of Article 15(a) (i) of China’s Accession Protocol and Para 7 of Annexure -I to the Anti -Dumping Rules, 1995, the normal value for Chinese producers may be determined based on the cost or domestic selling price prevailing in Chi na PR, 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 of paras 1 to 6 of Annexure -I to the AD Rules, failing which, normal value for Ch inese producers must be determined based on paras 7 and 8 of Annexure -I to the Rules. 16. The applicant has also claimed that the data relating to cost or price in market economy third country or recourse to other alternative methods are not available. The nor mal value has been, thereby, constructed based on the best estimates of the cost of production of the domestic industry of the subject goods as per the best information available after duly adjusting the selling, general and administrative expenses, with r easonable profits. b. Export price 17. The export price for the subject goods has been computed based on the DG Systems transaction -wise import data. Appropriate price adjustments have been claimed to make prices at ex -factory levels so that they become comparab le with normal value. c. Dumping margin 18. 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 minimis level and significant in respect of the product under considerati on exported 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 domestic market of India by the exporters from the subject country. G. INJURY AND CAUSAL LINK 19. Information furnished by the applicant has been considered for assessment of injury to the domestic industry on account of dumped imports of the subject goods from the subject country. The volume of the subject goods from the subject country has incr eased in absolute as well as relative terms. The price suppression and depression caused by dumped imports have been preventing the applicant from moving its prices to recover the full cost and achieve a reasonable rate of return. The applicant has also cl aimed that because of the adverse volume and price effect of the dumped imports, their performance has deteriorated in respect of market share, cash profit, profits and return on investment etc. There is sufficient prima facie evidence that the domestic industry has suffered injury due to dumped imports from the subject country to justify the initiation of the anti - dumping investigation. H. INITIATION OF ANTI -DUMPING INVESTIGATION 20. On the basis of the duly substantiated written application submitted by the dome stic industry, and having reached satisfaction based on the prima facie evidence submitted by domestic industry about dumping of subject goods originating in or exported from the subject country, the injury to the domestic industry and the causal link betw een such alleged dumping 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 alleged dumping in resp ect of the subject goods 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. I. PROCEDURE 21. The provisions stipulated in Rule 6 o f the AD Rules shall be followed in this investigation. J. SUBMISSION OF INFORMATION 22. All communication should be sent to the Designated Authority via email at email addresses adv13 [email protected] , consultant -dgtr@govcont ractor.in . , dd16 [email protected] and dd12 [email protected] . 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 the subject country, the government of the subject country through its Embassy in India, the importers and users in India who are known to be associated with the subject goods 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 for any updated information with respect to this investigation. Interested parties are directed to regularly visit t he 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 question naire formats, PCN methodology, PCN discussion/meeting schedule, notice of oral hearing, corrigendum, amendment notifications, and other such information. K. TIME LIMIT 27. Any information relating to the present investigation should be sent to the Designated Au thority via email at email addresses adv13 [email protected] , consultant [email protected] , dd16 [email protected] and dd12 - [email protected] within 30 days from the date on which it was sent by the Designated Authority or transmitted to the appropriate diplo matic representative of the exporting country as per Rule 6(4) of the AD Rules. 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 AD Rules. 28. All the interested parties are hereby advi sed 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 29. Any party making confidential submission or providing information on a confidential basis before the Authority, is required to simultaneously submit a non -confidential version of the same information in terms of Rule 7(2) of the Rules and in accordance with the relevant tr ade notices issued by the Authority 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/Annexures attached thereto), before the Authority including questi onnaire responses, are required to file confidential and non -confidential versions separately. 31. 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 treat ed as ‘non -confidential’ information by the Authority, and the Authority shall be at liberty to allow other interested parties to inspect such submissions. 32. The confidential version shall contain all information which is, by nature, confidential, and/or oth er information, which the supplier of such information claims as confidential. For the 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 informatio n is required to provide a good cause statement along with the supplied information as to why such information cannot be disclosed. 33. The non -confidential version of the information filed by the interested parties is required to be a replica of the confident ial 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. 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 i ndicate 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. 34. The interested par ties can offer their comments on the issues of confidentiality claimed by the other interested parties within 7 days from the date of circulation of the non -confidential version of the documents. 35. The Authority may accept or reject the request for confident iality 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 i ts disclosure in generalized or summary form, it may disregard such information. 36. 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. M. INSPECTION OF PUBLIC FILE 37. 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/responses/information to all other interested parties. Failure to circulate non -confidential version of the submissions/responses/information might lead to consideration of an interested party as non -cooperative. N. NON -COOPERATION 38. In case any interested party refuses access to and otherwise does not pr ovide 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. DARPAN JAIN, Designated Authori ty Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi -110064 and Pub lished by the Controller of Publications, Delhi -110054.

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