Initiation Notification PX 13

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-30032025-262165 EXTRAORDINARY PART I-Section 1 PUBLISHED BY AUTHORITY No. 99] NEW DELHI, FRIDAY, MARCH 28, 2025/CHAITRA 7, 1947 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF TRADE REMEDIES) INITIATION NOTIFICATION New Delhi, the 28th March, 2025 Case No. AD (OI)-10/2025 Subject: Initiation of anti-dumping investigation concerning imports of “N-(1,3-dimethylbutyl)-N'-phenyl-p- phenylenediamine (also known as PX-13)" originating in or exported from China PR, European Union, Korea RP and Kingdom of Thailand - reg. F. No. 6/10/2025-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 NOCIL Limited (hereinafter referred to as the 'applicant' or 'petitioner') has filed an application before the Designated Authority (hereinafter referred to as the ‘Authority'), for initiation of an anti-dumping investigation on imports of “N-(1,3-dimethylbutyl)-N'-phenyl-p-phenylenediamine (also known as PX-13)" (hereinafter referred to as the 'product under consideration' or 'subject goods' or ‘PUC' or 'PX-13'). The present investigation concerns import of PX-13 originating in or exported from China PR, European Union, Korea RP and Kingdom of Thailand (hereinafter referred to as the 'subject countries'). 2. The applicant has alleged that material injury is being caused due to the dumped imports of the subject goods from the subject countries and has requested for the imposition of the anti-dumping duties on the imports of the subject goods, originating in or exported from the subject countries. A. PRODUCT UNDER CONSIDERATION 3. The product under consideration (PUC) in the present application is "N-(1,3-dimethylbutyl)-N'-phenyl-p- phenylenediamine” or also known as “PX-13” or “6 PPD”. 4. PX-13 is also known as 6PPD and is imported with various descriptions such as Antioxidant 6PPD, Kumanox 13, Santoflex 6PPD, Sirantox 6PPD, Vulkanox 4020, Antioxidant4020, Dussantox 6PPD, Antage 6C, N-1,3- Dimethylbutyl)-N'-Phenyl-P-Phenylenediamine, etc. 5. PX-13 is an alkyl-aryl-PPD anti-degradant most widely used in the tyre and non-tyre sector of the rubber industry. PX-13 offers excellent resistance to rubber vulcanizates against degradative forces such as ozone (static as well as dynamic), flex-cracking and fatigue, oxidative heat ageing, metal-ion catalysed oxidative ageing, UV light and weathering. It is used as antioxidants in treating natural rubber, synthetic rubber (SBR, Butadiene Rubber, Nitrile Rubber, Carboxylated Rubber) and other synthetic rubber-based compounds used for manufacture of various rubber products to achieve the desired life cycle of the rubber product. 6. PX-13 is classified under Chapter 38 viz., ‘Miscellaneous chemicals products' of the Customs Tariff Act, 1975 under sub-heading 3812 39 of the tariff classification. The applicant has stated that PX-13 is imported under the ITC-HS codes 29215120, 29215130, 29215190, 38121000, 38122090, 38123100, 38123910, 38123920, 38123930 and 38123990. 7. The applicant has not proposed any PCN at this stage. The parties to the present investigation may provide their comments, on the scope of the PUC and propose PCNs, if any, within 15 days from the date of initiation of this investigation. B. LIKE ARTICLE 8. The applicant has submitted that there are no significant differences in the product produced by the applicant and those exported from the subject countries, and both are like articles. The product produced by the applicant and those imported from the subject countries are comparable in terms of essential product characteristics such as physical and chemical characteristics, manufacturing process & technology, functions & usage, product specifications, pricing, distribution & marketing and tariff classification of the goods. Consumers can use and have been using the two interchangeably. The two are technically and commercially substitutable, and hence, should be treated as 'like article' under the Rules. 9. Therefore, for the purposes of initiation of the present investigation, the product produced by the applicant has been prima facie considered as like article to the product being imported from the subject countries. C. DOMESTIC INDUSTRY & STANDING 10. The application has been filed by M/s NOCIL Limited. Apart from applicant there are two other domestic producers in India namely, M/s Finorchem Limited and M/s Lanxess India Private Limited. 11. In this regard, communication was also sent to the other domestic producers, to which M/s Finorchem Limited has responded and expressed its support to the application. 12. The applicant has certified that it is not related to an exporter or producer of the subject goods in the subject countries or an importer in India either directly or indirectly within the meaning of Rule 2(b) the Rules. The applicant has not imported the product under consideration. 13. Based on the information provided, it is seen that the applicant constitutes '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. D. SUBJECT COUNTRIES 14. The subject countries in the present investigation are China PR, European Union, Korea RP and Kingdom of Thailand. E. PERIOD OF INVESTIGATION 15. The period of investigation for the purpose of the present investigation is 1st October 2023 to 30th September 2024 (12 months). The injury investigation period will cover the period 1st April 2021 to 31st March 2022, 1st April 2022 to 31st March 2023, 1st April 2023 to 31st March 2024 and the period of investigation. F. BASIS OF ALLEGED DUMPING i. Normal value for China PR 16. The applicant has cited and relied upon Article 15(a) (i) of China's Accession Protocol and has claimed that China PR should be treated as a non-market economy and that producers from China PR should be directed to demonstrate that market economy conditions prevail in the industry with regard to the production and sales of the product under consideration. Unless the producers from China PR show that such market economy conditions prevail, their normal value should be determined in accordance with Para 7 and 8 of Annexure-I to the Anti- Dumping Rules, 1995. 17. The applicant has submitted that data relating to cost and price in market economy third country is not available. Further, with regards to the price at which the product under consideration has been sold from the market economy third country to any other country, including India, the applicant submitted this information is not available as the product under consideration does not have a dedicated code in most of the countries. Therefore, the applicant could not determine normal value based on export price from any other country. The applicant has therefore claimed normal value for PX-13 based on its cost of production in India, adjusted to include a reasonable profit margin. 18. For the purpose of initiation, the normal value for PX-13 has been determined based on cost of production in India, duly adjusted for addition of selling, general and administrative expenses and reasonable profits. ii. Normal value for European Union, Korea RP and Kingdom of Thailand 19. For European Union and Kingdom of Thailand, the applicant has claimed normal value based on its export price to these countries. The applicant has also provided normal value based on facts available considering its cost of production in India, adjusted to include a reasonable profit margin. For Korea RP, the applicant has provided normal value based on facts available considering its cost of production of PX-13 with reasonable addition for profits as the basis for normal value. 20. For the purpose of initiation, the normal value has been determined based on facts available considering cost of production in India, duly adjusted for addition of selling, general and administrative expenses and reasonable profits. iii. Export price 21. The export price of the subject goods has been determined by considering CIF price of the subject goods, as reported in the DGCI&S import data. Price adjustments have been made on account of ocean freight, marine insurance, commission, port expenses, inland freight and bank charges to arrive at ex-factory export price. There is sufficient evidence of export prices claimed for subject countries. iv. Dumping margin 22. The normal value and the export price have been compared at the ex-factory level, which prima facie establishes that the dumping margin with respect to the product under consideration imported from the subject countries is not only above the de minimis level but is also significant. Thus, there is sufficient prima facie evidence that the product under consideration is being dumped in the domestic market of India by the exporters from the subject countries. G. EVIDENCE OF INJURY AND CAUSAL LINK 23. Information furnished by the applicant has been considered for assessment of injury to the domestic industry. The applicant has claimed that it has suffered material injury as a result of the dumped imports. The information concerning imports and economic parameters of the domestic industry over the injury period show that the imports have increased in absolute terms over the injury period and are significant in relation to the Indian production and consumption. There is positive price undercutting and price depression effect on the prices of the applicant. The applicant has incurred decline in its profitability and return on capital employed. Despite having enough capacity to meet the entire Indian demand, the market share and the domestic sales of the domestic industry have significantly declined and are below the level the domestic industry could have achieved. There is sufficient prima facie evidence of injury being caused to the domestic industry by dumped imports of subject goods from the subject countries. H. INITIATION OF ANTI-DUMPING INVESTIGATION 24. On the basis of the duly substantiated written application submitted by the applicant and having reached satisfaction based on the prima facie evidence submitted by the applicant concerning the dumping of the product under consideration originating in or exported from the subject countries, the consequential injury to the domestic industry as a result of the alleged dumping of the product under consideration and the causal link between such injury and the dumped imports, 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 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 25. The provisions stipulated in Rule 6 of the Anti-Dumping Rules shall be followed in this investigation. J. SUBMISSION OF INFORMATION 26. All communication should be sent to the Designated Authority via email at the email addresses <dir13- [email protected]> and <[email protected]> with a copy to <[email protected]> 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. 27. The known producers/exporters in the subject countries, the government of the subject countries 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 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. 28. 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. 29. 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. 30. Interested parties are further advised to regularly visit the official website of the Directorate General of Trade Remedies (https://www.dgtr.gov.in) for any updated information as well as further processes related to the investigation. K. TIME LIMIT 31. Any information relating to the present investigation should be sent to the Designated Authority via email at the email <[email protected]> and <[email protected]> with a copy to <[email protected]> and <consultant- [email protected]> within 30 days from the date on which the non-confidential version of the application filed by or on behalf of 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 AD Rules, 1995. If no information is received within the stipulated 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. 32. 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. 33. 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. L. SUBMISSION OF INFORMATION ON CONFIDENTIAL BASIS 34. Where any party makes any confidential submissions or provides information on a confidential basis before the Authority, such party is required to simultaneously submit a non-confidential version of such information in terms of Rule 7(2) of the Rules and in accordance with the relevant trade notices issued by the Authority in this regard. Failure to adhere to the same may lead to rejection of the response / submissions. 35. Such submissions must be clearly marked as “confidential” or “non-confidential” at the top of each page. Any submission that has been made to the Authority 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. 36. 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 the 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 be disclosed. 37. 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 summarized depending upon the information on which confidentiality is claimed. 38. 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 summary, and a statement of reasons as to why such summarization is not possible, must be provided to the satisfaction of the Authority. 39. The interested parties can offer their comments 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 submission. 40. Any submission made without a meaningful non-confidential version thereof or a sufficient and adequate cause statement in terms of Rule 7 of the Rules, and appropriate trade notices issued by the Authority, on the confidentiality claim shall not be taken on record by the Authority. 41. 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 authorise its disclosure in generalised or summary form, it may disregard such information. M. INSPECTION OF PUBLIC FILE 42. A list of registered interested parties will be uploaded on the DGTRs 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 consideration of an interested part as non- cooperative. N. NON-COOPERATION 43. In case any interested party refuses access to and otherwise does not provide 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 Authority Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.