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EXTRAORDINARY
PART I —Section 1
PUBLISHED BY AUTHORITY
No. 77] NEW DELHI, THURS DAY , MARCH 2 8, 2024 /CHAITRA 8, 194 6
CG-DL-E-30032024-253472
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 27th March, 2024
(Case No. AD(OI) - 0I/2024)
Subject : Initiation of anti -dumping investigation concerning imports of “Insoluble Sulphur” originating in or
exported from China PR and Japan.
F. No. 6/01/2024 -DGTR .—1. M/s. Oriental Carbon & Ch emicals Limited (hereinafter referred to as
applicant) has filed an application before the Designated Authority (hereinafter referred to as the "Authority") under
the provisions of the Customs Tariff Act 1975, as amended from time to time (hereinafter also referred to 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'),
seeki ng initiation of an anti -dumping investigation by alleging dumping of "Insoluble Sulphur", originating in or
exported from China PR and Japan (hereinafter referred to as the “subject countries”).
A. PRODUCT UNDER CONSIDERATION
2. The product under consider ation is the “Insoluble Sulphur” hereinafter also referred to as "subject goods" or
"product under consideration" or "PUC").
3. Insoluble sulphur by definition, is a polymeric sulphur which is insoluble in carbon disulphide (CS2).
Insoluble Sulphur is gene rally used as a vulcanization agent in some rubber applications in order to resist the
blooming phenomenon which is detrimental to rubber compound.
4. Insoluble sulphur is an important rubber additive agent. it improves product quality, wearability and
resistance to both fatigue and ageing. In addition to being universally recognized as the best vulcanizing
agent, it is widely used in the manufacture of tire, tread, shoes, all kinds of automobile rubber parts and other
rubber products. Therefore, due to i ts non -blooming characteristic, insoluble sulphur is widely used in the
manufacture of rubber products in which common sulphur is incorporated in high proportion. Based on the
end-user industry, out of the total consumption of insoluble sulphur in India, more than 90% is used in the
tyre industry and the remaining is used in non -tyre industry. The unit of measurement considered is weight of
the product reported in kilograms (Kg).
5. The product under consideration is classifiable under tariff item 2802 00 10 and 3812 39 30 of the first
schedule I to the Customs Tariff Act, 1975. The product under consideration is also imported unde r tariff
item 3824 99 00. However, Customs classifications are indicative only and in no way binding on the scope of
this investigation.
6. The applicant has not proposed any PCNs in the present application. The interested parties may offer their
comments/ submissions on the PUC/ PCN, if any, within thirty days from the date of date of initiation of this
investigation.
B. LIKE ARTICLE
7. The applicant has claimed that the goods produced by the domestic industry are like articles to the subject
good originati ng in or exported from the subject countries. It has been stated that 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 of the
subject goods. The subject goods and the article manufactured by the applicant are technically and
commercially substitutable. The applicant has claimed that consumers are using the subject goods and the
article manufactured by the applicant interchangeably. Thus, for the purpose of the present investigation, the
subject goods produced by the domestic industry is being treated as ‘like article’ of the subject goods
imported from China PR and Japan.
C. DOMES TIC INDUSTRY AND STANDING
8. The application has been filed by Oriental Carbon & Chemicals Limited.
9. As per the evidence available on record, the applicant is the sole producer of the product under consideration.
Further, the applicant has not imported t he subject goods from the subject countries nor are they related to
any the importer or the exporter of the subject goods. In view of the above, the Authority notes prima facie
that the applicant constitutes eligible domestic industry in terms of Rule 2 (b ), and the application satisfies
the criteria of standing in terms of Rule 5(3) of the Rules supra.
D. SUBJECT COUNTRIES
10. The subject countries for the present investigation are China PR and Japan.
E. PERIOD OF INVESTIGATION
11. The period of investigat ion (POI) in the present investigation is January 2023 - December 2023 (12 months).
The injury investigation period has been considered as period 1st April 2020 to 31st March 2021, 1st April
2021 to 31st March 2022, 1st April 2022 to 31st March 2023 and the POI.
F. BASIS OF ALLEGED DUMPING
a. Normal Value for China
12. The applicant has claimed that China PR should be treated as a non -market economy and the normal value
should be determined in terms of Rule -7 of Annexure I of the Rules. The applicant has cit ed Para 8(2) of
Annexure -I of the Rules and have stated that the Chinese producers should be directed to demonstrate that
market economy conditions prevail in the industry producing the subject goods in terms Para 8(3) of
Annexure -I of the Rules. The appli cant has claimed that for China PR, normal value should be determined in
accordance with para 7 and 8 of Annexure I of the Rules.
13. The applicant has also claimed that the data relating to cost or price in a market economy third country is not
available. Therefore, normal value, 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 of the subject goods as per
the best information available after duly adju sting the selling, general and administrative expenses with
reasonable profits.
b. Normal Value for Japan
14. The applicant has claimed that efforts were made to collect the data relating to price of the product in the
domestic market of Japan, however, th e same was not available. Therefore, normal value, 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 of the subject goods as per the best information available after duly adjusting the
selling, general and administrative expenses with reasonable profits. The Authority will further examine the
evidence provided by the interested parties and the applicant for the determination of normal value during the
investigation.
c. Export Price
15. The export price for the subject goods has been computed based on the Directorate General of Systems &
Data Management transaction -wise import data. Appropriate price adjustments have been claimed to make
the prices at ex -factory levels so that they become comparable with the normal value.
d. Dumping Margin
16. The normal value and the export price have been compared at the ex -factory level, which prima facie
establishes that the dumping margin is above the de minimis level and is significant with respect to the
product under consideration from both the subject countries individually. Thus, there is sufficient prima facie
evidence that the product under consideration from the subject countries is being dumped in the domestic
market of India by the exporters from the subject countries.
G. ALLEGATION OF INJURY AND CAUSAL LINK
17. The applicant has provided prima facie evidence with respect to the injury suffered by the domestic industry
because of the dumped imports. The volume of the subject imports from the subject countries has increased
in both absolute as well as in relative terms. The capacity utilization of the domestic industry has declined.
The price depression caused by the dumped imports have been preventing the domes tic industry from
increasing its prices to recover the full cost and achieve reasonable rate of returns in POI. The subject imports
have an adverse impact on the profitability parameters of the domestic industry. Thus, the evidence provided
by the applican t, prima facie shows injury to the domestic industry caused by the alleged dumped imports
from China PR and Japan.
H. INITIATION OF THE INVESTIGATION
18. On the basis of the duly substantiated application by the domestic industry, and having satisfied itse lf, on the
basis of prima facie evidence submitted by the applicant substantiating the dumping and consequent injury to
the domestic industry, the Authority hereby initiates an anti -dumping investigation into the alleged dumping
and consequent material inj ury to the domestic industry in accordance with Section 9A of the Act read with
Rule 5 of the Rules, to determine the existence, degree, and effect of alleged dumping and to recommend the
amount of dumping duty, which if levied would be adequate to remove the injury to the domestic industry.
I. SUBMISSION OF INFORMATION
19. All communication should be sent to the Authority via email at the email adg16 [email protected], adv13 -
[email protected], dir16 [email protected] and dd17 [email protected]. It should be ensured that the narra tive part of the
submission is in searchable PDF/MS Word format and data files are in MS Excel format.
20. The known producers/exporters from the subject countries, their government through their embassy in India,
the importers and users in India known to be concerned with the subject goods and the domestic producers
are being informed separately to enable them to file all the relevant information in the form and manner
prescribed within the time -limit set out below.
21. Any other interested party may also make its submissions relevant to the investigation in the form and
manner prescribed within the time -limit set out below on the email addresses mentioned hereinabove.
22. 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.
23. Interested parties are further advised to keep a regular watch on the official website of the Authority
http://www.dgtr.gov.in/ for any updated information with respect to this investigation.
J. TIME LIMIT
24. Any information relating to the present investigation should be sent to the Authority via email at the email
addresses adg16 [email protected], adv13 [email protected], dir16 [email protected] and dd17 [email protected] within thirty
days (30 days) from the date of receipt of the notice as per Rule 6(4) of the ADD 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 countries. If no
information is received within the prescribed time limit or the information received is i ncomplete, the
Authority may record its finding on the basis of the facts available on records in accordance with the Rules.
25. All the interested parties are hereby advised to intimate their interest (including the nature of interest) in the
instant inve stigation and file their questionnaire response/submissions within the above time limit.
K. SUBMISSION OF INFORMATION ON CONFIDENTIAL BASIS
26. 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 8(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.
27. 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.
28. The "confidential" or "non -confidential" subm issions 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 interes ted parties to
inspect such submissions.
29. 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 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 b e disclosed.
30. 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.
31. The non -confidential summary must be in sufficient detail to permit a reasonable understanding of the
substance of the info rmation 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 adeq uate explanation in terms of Rule 8 of
the Rules, 1995, and appropriate trade notices issued by the Authority, as to why such summarization is not
possible, must be provided to the satisfaction of the Authority.
32. The interested parties can offer their c omments on the aforementioned email addresses on the issues of
confidentiality claimed by the interested parties within 7 days from the date of circulation of the non -
confidential version of the documents.
33. Any submission made without a meaningful non -confidential version thereof or a sufficient and adequate
cause statement in terms of Rule 8 of the Rules, and appropriate trade notices issued by the Authority, on the
confidentiality claim shall not be taken on record by the Authority.
34. The Authority m ay 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 in summary form, it may. disregard such information.
L. INSPECTION OF PUBLIC FILE
35. A list of registered interested parties will be uploaded on the DGTR's website along with the requ est therein
to all of them to email the non -confidential version of their submissions/response/information to all other
interested parties. Failure to circulate non - confidential version of submissions/response/information might
lead to consideration of an interested parry as non -cooperative.
M. NON - COOPERATION
36. In case where an interested party refuses access to, or otherwise does not provide necessary information
within a reasonable period, or significantly impedes the investigation, the Authority may record its findings
on the basis of the facts available to it and make such recommendations to the Central Government as
deemed fit.
ANANT SWARUP, Designated Authority
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New D elhi-110064
and Published by the Controller of Publications, Delhi -110054.
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