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Ministry of Commerce and Industry DIRECTORATE GENERAL OF TRADE REMEDIES

PF PVC PASTE RESIN

Issue Date: 26 April 2024 Published: 30 April 2024 Published with 4 days delay
Gazette ID: CG-DL-E-30042024-253941 Download PDF Official source ↗
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                Core Purpose
            

            
Preliminary findings under Section 9A of the Customs Tariff Act, 1975 read with the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, in the anti-dumping investigation (Case No. AD(OI)–16/2023) concerning imports of "Poly Vinyl Chloride Paste Resin" from China PR, Korea RP, Malaysia, Norway, Taiwan and Thailand.

        

        

        
        
        

            

                
                    
                    
                    
                    
                
                Detailed Summary
            

            
The Directorate General of Trade Remedies (DGTR), Department of Commerce, Ministry of Commerce and Industry, issues preliminary findings dated 26th April 2024 (F. No. 6/17/2023-DGTR, Case No. AD(OI)–16/2023) in the anti-dumping investigation concerning imports of "Poly Vinyl Chloride Paste Resin" (also known as Emulsion PVC Resin, classified under Chapter 39, subheading 390410, ITC HS Code 39041010 of the Customs Tariff Act, 1975) originating in or exported from China PR, Korea RP, Malaysia, Norway, Taiwan and Thailand, initiated 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, following an application by the domestic industry, Chemplast Sanmar Limited, and a public notice issued via Notification No. 06/17/2023-DGTR dated 30th September 2023; the document describes the investigation procedure, including questionnaires issued to producers/exporters and importers/users under Rules 6(3) and 6(4) of the Rules and an Economic Interest Questionnaire sent to interested parties including the Department of Chemicals & Petrochemicals, and defines the product under consideration and its exclusions, such as PVC Blending Resin, co-polymers of PVC Paste Resin, and battery separator resins.

        

        

        
        

            

                
                    
                    
                    
                    
                    
                
                Full Text
            

            
            

                
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-30042024-253941
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 116]
NEW DELHI, FRIDAY, APRIL 26, 2024/VAISAKHA 6, 1946

MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
NOTIFICATION
New Delhi, the 26th April, 2024
PRELIMINARY FINDINGS
Case No. AD(OI) – 16/2023
Subject: Preliminary findings in the anti-dumping investigation concerning imports of "Poly Vinyl Chloride Paste Resin" originating in or exported from China PR, Korea RP, Malaysia, Norway, Taiwan & Thailand.
F. No. 6/17/2023-DGTR.—Having regard to the Customs Tariff Act, 1975, as amended from time to time (hereafter 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 thereof, as amended from time to time (hereinafter referred to as “AD Rules");

A. BACKGROUND OF THE CASE
1. Chemplast Sanmar Limited (“hereinafter referred to as the ‘applicant' or the ‘domestic industry') had filed an application before the Designated Authority (hereinafter referred to as the 'Authority') in accordance with the Customs Tariff Act, 1975 (hereinafter referred to as the 'Act') as amended from time to time and the Anti-dumping Rules, 1995 (hereinafter referred to as the “Rules”), for the initiation of an anti-dumping investigation concerning imports of 'Poly Vinyl Chloride Paste Resin' (hereinafter also referred to as the 'product under consideration' or the 'subject goods' or the 'PUC') from China PR, Korea RP, Malaysia, Norway, Taiwan and Thailand (hereinafter also referred to as the 'subject countries').
2. The Authority, on the basis of sufficient prima facie evidence submitted by the domestic industry, issued a public notice vide Notification No. 06/17/2023-DGTR dated 30th September 2023, published in the Gazette of India - Extraordinary, initiating the subject investigation in accordance with the Section 9A of the Act read with Rule 5 of the Rules to determine the existence, degree and effect of the alleged dumping of the subject goods originating in or exported from the subject countries and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the alleged injury to the domestic injury.

B. PROCEDURE
3. The procedure described below has been followed with regard to the investigation:
a. The Authority notified the embassies of the subject countries in India about the receipt of the present anti-dumping application before proceeding to initiate the investigation in accordance with Rule 5(5) of the Rules.
b. The Authority issued a public notice dated 30th September 2023 published in the Gazette of India - Extraordinary, initiating the anti-dumping investigation concerning imports of the product under consideration from the subject countries.
c. The Authority sent a copy of the initiation notification to the embassies of the subject countries in India, the known producers and exporters from the subject countries, the known importers/users in India, and the other interested parties, as per the email addresses made available by the domestic industry. The interested parties were requested to provide relevant information in the form and manner prescribed in the initiation notification and make their submissions known in writing within the time limits prescribed in the initiation notification.
d. The Authority provided a copy of the non-confidential version of the application filed by the domestic industry to the known producers/exporters and to the embassies of the subject countries in India in accordance with Rule 6(3) of the Rules.
e. The embassies of the subject countries in India were also requested to advise the exporters/producers from their respective countries to submit their responses to the questionnaire within the time limit prescribed in the initiation notification. Embassies of the subject countries were also sent a copy of the letter and questionnaire sent to the producers/exporters along with the names and addresses of the known producers/exporters from the subject countries.
f. The Authority also issued an Economic Interest Questionnaire (hereafter referred to as the 'EIQ') to the interested parties, including the Department of Chemicals & Petrochemicals, seeking inputs on the economic impact of the proposed duties. The information received from all the parties have been considered for the purpose of the present determination.
g. The Authority sent questionnaires to the known producers/exporters in the subject countries in accordance with Rule 6(4) of the Rules.
+--------+----------------+-------------------------------------------------------------+
| S. No. | Subject country| Producer/Exporter                                           |
+========+================+=============================================================+
| 1      | China PR       | i. Hebei Weihang Biotechnology Co Ltd                       |
|        |                | ii. Henan Fengbai Industrial Co Ltd                         |
|        |                | iii. Shanxi Solid Industrial Co Ltd                         |
|        |                | iv. Shenyang Chemical Co Ltd                                |
|        |                | v. Tainjin Bohai Chemical Industries Import and Export Corporation |
|        |                | vi. Tianjin Chemical Plant Ltd                              |
+--------+----------------+-------------------------------------------------------------+
| 2      | Korea RP       | i. Bricon Co Ltd                                            |
|        |                | ii. GP Company Ltd                                          |
|        |                | iii. Hanhwa Chemicals Ltd                                   |
|        |                | iv. M/S Hanwha Solutions Chemical Ltd                       |
|        |                | V. LG Chem Ltd                                              |
|        |                | vi. Seino Logix Co Ltd                                      |
+--------+----------------+-------------------------------------------------------------+
| 3      | Malaysia       | i. Kaneka Paste Polymers Sdn. Bhd.                          |
|        |                | ii. MK Resources Co. Ltd.                                   |
|        |                | iii. PT Jasindo                                             |
|        |                | iv. Sun Ace Kakoh (Malaysia) Sdn. Bhd.                      |
+--------+----------------+-------------------------------------------------------------+
| 4      | Norway         | i. Inovyn Europe Ltd                                        |
|        |                | ii. Centary Faith Industrial Ltd                            |
+--------+----------------+-------------------------------------------------------------+
| 5      | Taiwan         | i. Ocean Plastics Co Ltd                                    |
|        |                | ii. YAOI Fabric Co Ltd                                      |
+--------+----------------+-------------------------------------------------------------+
| 6      | Thailand       | i. Gramms International Ltd                                 |
|        |                | ii. NABA Chem                                               |
|        |                | iii. Nizza Plastic Co Ltd                                   |
|        |                | iv. Thai Polyethylene Co Ltd                                |
+--------+----------------+-------------------------------------------------------------+

h. In response to the above notification, the following producers/exporters from the subject countries have registered themselves as interested parties:
+--------+----------------+-------------------------------------------------------------+
| S. No. | Subject country| Producer/Exporter                                           |
+========+================+=============================================================+
| 1      | China PR       | i. CNSIG Jilantai Chlor-Alkali Chemical Co., Ltd            |
|        |                | ii. China Salt Chemical Trading Co., Ltd                    |
|        |                | 111. CNSIG Inner Mongolia Sodium Industry Co., Ltd.         |
|        |                | iv. CNSG Jilantai Polymer Materials Co., Ltd.               |
|        |                | V. Tianwei Chemical Co. Ltd.                                |
|        |                | V1. Grand Dignity Industrial Co. Ltd                        |
|        |                | vii. Formosa Industries (Ningbo) Co., Ltd                   |
|        |                | viii. Ordos Junzheng Energy & Chemical Industry Co., Ltd    |
|        |                | ix. Linkland Enterprise Shanghai Co., Ltd                   |
|        |                | Χ. Shenyang Chemical Co. Ltd                                |
+--------+----------------+-------------------------------------------------------------+
| 2      | Korea RP       | i. LG Chem Ltd                                              |
|        |                | ii. M/S Hanwha Solutions Corporation                        |
+--------+----------------+-------------------------------------------------------------+
| 3      | Malaysia       | Kaneka Paste Polymers Sdn. Bhd.                             |
+--------+----------------+-------------------------------------------------------------+
| 4      | Norway         | Inovyn Europe Ltd                                           |
+--------+----------------+-------------------------------------------------------------+
| 5      | Taiwan         | Formosa Plastics Corporation                                |
+--------+----------------+-------------------------------------------------------------+

i. The producers/exporters from the subject countries who have not submitted the questionnaire response or have not co-operated in the investigation have been treated as non – co-operative in the investigation.
j. The Authority also sent questionnaires to the following known importers/users of the product under consideration in India calling for necessary information in accordance with Rule 6(4) of Rules.
+--------+---------------------------------------+
| S. No. | User/importer                         |
+========+=======================================+
| 1      | AC Polycoaters Private Limited        |
| 2      | Advance Molecules                     |
| 3      | Aggarwal Coated Fab Private Limited   |
| 4      | Akshat Plastics Private Limited       |
| 5      | Arora Vinyl Private Limited           |
| 6      | AV Unicoaters Private Limited         |
| 7      | AVR Overseas Private Limited          |
| 8      | Coco Tufters Private Limited          |
| 9      | Colence International Private Limited |
| 10     | Floor Gardens                         |
| 11     | HR Polycoats Private Limited          |
| 12     | International Conveyers Limited       |
| 13     | Jasch Industries Limited              |
| 14     | JP Petrochem Private Limited          |
| 15     | Kerafibertex International Private Limited |
| 16     | Klassik Lamitex Private Limited       |
| 17     | LFC Texcoat Private Limited           |
| 18     | Manish Vinyls Private Limited         |
| 19     | Mayur Uniquoters Limited              |
| 20     | MM9 Polytrade Private Limited         |
| 21     | Nueve Enterprises Private Limited     |
| 22     | OM Vinyls Private Limited             |
| 23     | Oswal Polychem Private Limited        |
| 24     | Premier Polyfilm Limited              |
| 25     | Prime Polychem Private Limited        |
| 26     | Raj Overseas                          |
| 27     | Responsive Industries Limited         |
| 28     | SD International                      |
| 29     | SR Polyvinyl Limited                  |
| 30     | SRF Limited                           |
| 31     | TP Polymer Private Limited            |
| 32     | Zaibunco Industries Private Limited   |
+--------+---------------------------------------+

k. The following importers/users in India have registered themselves as interested parties:
+--------+-------------------------------------------------------------+
| S. No. | User/importer of the product under consideration in India   |
+========+=============================================================+
| 1      | AC Polycoaters Private Limited                              |
| 2      | Aritas Vinyl Private Limited                                |
| 3      | Arora Vinyl Private Limited                                 |
| 4      | AV Unicoaters Private Limited                               |
| 5      | Beeta Poly Coats Private Limited                            |
| 6      | Delite Collections Private Limited                          |
| 7      | Jasch Industries Limited                                    |
| 8      | Klassik Lamitex Private Limited                             |
| 9      | Marvel Vinyls Limited                                       |
| 10     | Mayur Uniquoters Limited                                    |
| 11     | Polynova Industries Limited                                 |
| 12     | Premier Poly film Limited                                   |
| 13     | Prerna Rex Private Limited                                  |
| 14     | Prerna Rex Private Limited                                  |
| 15     | RMG Polyvinyl India Limited                                 |
| 16     | Shiv Polymers                                               |
+--------+-------------------------------------------------------------+

C. THE PRODUCT UNDER CONSIDERATION AND LIKE ARTICLE
4. The product under consideration as defined at the stage of initiation was as follows:
"3. The product under consideration for the present investigation is 'Poly Vinyl Chloride Paste Resin', also known as Emulsion PVC Resin.
4. PVC Paste Resin is produced using vinyl chloride monomer and is usually sold in the form of white/off-white powder. The PUC is primarily used for manufacturing artificial leather and the other uses of the product are in the manufacturing of rexene, coated fabrics, tarpaulins, conveyer beltings, toys, automotive sealant, adhesives, and gloves.
5. The following products are excluded from the scope of the PUC:
a) Production under consideration with a K value below 60K
b) PVC Blending Resin
c) Co-polymers of PVC Paste Resin
d) Battery separator resins
6. The product under consideration is classified under Chapter 39 of the Customs Tariff Act, 1975 under subheading 390410 of the Tariff classification and has a dedicated classification under ITC HS Code 39041010. The customs classification is indicative only and not binding on the scope of the product under consideration for the proposed investigation.

C.1 Submissions made on behalf of the opposing interested parties.
5. The opposing interested parties have made the following submissions with respect to the product under consideration and like article:
a. Innovyn Europe Ltd requested exclusion of a special type of eco-friendly PVC paste resin with the proprietary name 'Biovyn,' which is made entirely from renewable carbon feedstock and is certified by an external auditor as complying to RSB (Roundtable on Sustainable Biomaterials) standards. Owing to the higher cost of raw materials and additional costs such as certification etc, Biovyn sells at significantly higher prices than other forms of PVC paste.
b. The domestic industry produces a small subset of the wide range of PVC paste resins on which the duties are being sought.
c. The grades manufactured by the domestic industry are not comparable with the imported product on many important counts and there is no substitutability between the two on many core parameters.
d. The product under consideration is produced in varying grades, determined by the K- value of the product. The price of the product also varies depending on its grade. Therefore, PCN should be determined based on K-value.
e. Fast gelation, low fogging properties, excellent foaming properties, excellent air release property, higher filler acceptance grade, high thixotropic grades, excellent thermal stability, excellent mechanical properties grades etc. are some of the important properties of PCNs and should be considered for PCN methodology.
f. Viscosity is a relevant factor for the product under consideration and the product can be classified to be of high, low and medium viscosity.
g. There is a dedicated customs classification for the product under consideration and all items under tariff heading 3904 are subject to customs duty at 7.5%. There is no reason for misclassification of exports.
h. If duties are imposed on the broader heading 3904, it will lead to unnecessary ambiguity and confusion at the time of assessment of the anti-dumping duty. Since the customs classification is only indicative, even if PVC Paste Resin is imported under another tariff heading, it would still be subject to the anti-dumping duty.

C.2 Submissions made on behalf of the domestic industry.
6. The domestic industry, in its application and in the hearing on product scope held on 1st December 2023, submitted as follows with regard to the scope of the product under consideration and the like article:
a. PVC Paste Resin, manufactured by polymerisation of the vinyl chloride monomer, is sold as a white/off-white powder. It is primarily used for manufacturing artificial leather. The other uses of the product are in rexene, coated fabrics, tarpaulins, conveyer beltings, toys, automotive sealant, adhesives and gloves.
b. The product manufactured by the domestic industry is technically and commercially substitutable with the product under consideration and therefore constitutes the 'like article.'
c. The product under consideration is classified under Chapter 39 of the Customs Tariff Act, 1975 under 39041010. However, the product has been imported under various other codes also.
d. The grades of the product are distinguished based on K-value. However, the domestic industry maintains that the cost and price do not vary significantly with the grade. However, the domestic industry has no reservations if the PCNs are proposed as High K-value and Medium K-value.
e. Biovyn made by M/s Inovyn Europe Ltd. and M/s Inovyn Norge AS may be excluded from the product scope for the present investigation, subject to an appropriate benchmark price which may be determined by the Authority considering the prices declared for Biovyn.

C.3 Examination by the Authority.
7. The submissions made by the opposing interested parties and the domestic industry regarding the product under consideration and the like article have been examined and addressed hereunder.

PCN methodology.
8. Based on submissions made by opposing parties, a meeting was held regarding the scope of the product under consideration and the need for PCNs on 1st December 2023. The interested parties which filed comments prior to the meeting were given an opportunity to make submissions justifying the PCN methodology proposed by them. The interested parties were informed that the Authority will not seek any further comments after the meeting and the decision on the PCN methodology will be based on the information on record. Wherever clarifications were required, the Authority asked the interested parties to provide relevant information.
9. The Authority examined the submissions made with regards to the PCN methodology. It is seen that the "CNSIG Jilantai Chlor-Alkali Chemical Co., Ltd.", CNSIG Inner Mongolia Sodium Industry Co., Ltd.", "CNSG Jilantai Polymer Materials Co., Ltd." and "China Salt Chemical Trading Co., Ltd" had requested PCN methodology based on K-value, degree of polymerization, apparent density, volatilities etc. However, the exporters have not established how costs and prices differ on these accounts. Hanwha Solutions Corporation had requested PCN methodology based on grade or K-value but no information with respect to cost and price difference was provided. It further submitted that the claim of the domestic industry with respect to non-proposal of grade wise comparison should be rejected. The Authority further notes that K-value was considered as a PCN parameter in the previous investigations.
10. The Authority notes that the comments on the PUC/PCNs by certain users have not been considered by the Authority in formulation of the PCN methodology since these users did not adhere to the timelines prescribed by the Authority and the comments were filed at a very belated stage to merit any consideration.
11. The Authority, in view of the aforementioned adopted the PCNs based on K-value. The same were notified to the interested parties vide its communication dated 18th January 2024 which was published on DGTR's website. The following PCN methodology has been adopted by the Authority:
+--------+----------------+--------+---------+
| S. No. | PCN Parameter  | Range  | Code    |
+========+================+========+=========+
| 1      | K-value        | 60-70  | MEDIUM  |
| 2      | K-value        | Above 70| HIGH    |
+--------+----------------+--------+---------+

a. Exclusion of the Biovyn produced by Innovyn Europe Ltd.
12. The Authority examined the submissions of the parties. It is seen that selling price for Biovyn is significantly higher than that of general PVC paste resin. The domestic industry has also admitted for exclusion of the product subject to an appropriate benchmark price. However, the Authority, at this stage, holds that the brand "Biovyn" produced by Innovyn Europe Ltd. is outside the scope of the product under consideration.

b. Regarding the customs classification of the product under consideration.
13. The product under consideration is classified under Chapter 39 of the Customs Tariff Act, 1975 under subheading 390410 of the Tariff classification and has a dedicated classification under ITC HS Code 39041010. The Authority called for transaction-by-transaction data from the DGCI&S & the DG Systems and found that despite having a dedicated code 39041010, imports of the product under consideration have been reported under various HS codes. Therefore, for the purpose of these provisional measures, the Authority has also considered the following HS Codes:
+--------+-----------+
| S. No. | HS Code   |
+========+===========+
| 1.     | 39041010  |
| 2.     | 39041020  |
| 3.     | 39041090  |
| 4.     | 39042100  |
| 5.     | 39042200  |
| 6.     | 39043010  |
| 7.     | 39043090  |
| 8.     | 39049000  |
| 9.     | 39044000  |
| 10.    | 39049090  |
+--------+-----------+
14. Therefore, the Authority provisionally holds that the product under consideration is the same as was defined in the initiation notification and is as under:
“3. The product under consideration for the present investigation is 'Poly Vinyl Chloride Paste Resin', also known as Emulsion PVC Resin.
4. PVC Paste Resin is produced using vinyl chloride monomer and is usually sold in the form of white/off-white powder. The PUC is primarily used for manufacturing artificial leather and the other uses of the product are in the manufacturing of rexene, coated fabrics, tarpaulins, conveyer beltings, toys, automotive sealant, adhesives, and gloves.
5. The following products are excluded from the scope of the PUC:
a) Production under consideration with a K value below 60K
b) PVC Blending Resin
c) Co-polymers of PVC Paste Resin
d) Battery separator resins
15. As per the information available on record, the Authority notes that the product produced by the domestic industry is like article to the product under consideration imported from the subject countries. The product produced by the domestic industry is comparable to the goods imported from the subject countries in terms of physical & chemical characteristics, manufacturing process & technology, functions and uses, product specifications, pricing, distribution & marketing, and tariff classification of the goods. The two are technically and commercially substitutable. The consumers have used and are using the two interchangeably. Thus, the Authority provisionally holds that the product manufactured by the domestic industry constitutes the like article to the subject goods being imported into India from the subject countries in the terms of Rule 2(d).

D. SCOPE OF THE DOMESTIC INDUSTRY AND STANDING
D.1 Submissions made on behalf of the opposing interested parties.
16. The opposing interested parties have not made any submissions on the issue of the domestic industry and standing of the domestic industry.

D.2 Submissions made on behalf of the domestic industry.
17. The applicant has submitted as follows with regards to the scope of the domestic industry and standing:
a. The present application has been filed by Chemplast Sanmar Limited.
b. The application is supported by Finolex Industries Limited.
c. The applicant and the supporter are the only producers of the product in India.
d. The applicant has not imported the product under consideration. It is not related to any producer/exporter in any of the subject countries or to any importer of the product under consideration in India.

D.3 Examination by the Authority.
18. Rule 2(b) of the Anti-Dumping Rules defines the domestic industry as under:
"(b) "the domestic industry" means the domestic producers as a whole engaged in the manufacture of the like article and any activity connected therewith or those whose collective output of the said article constitutes a major proportion of the total domestic production of that article except when such producers are related to the exporters or importers of the alleged dumped article or are themselves importers thereof in such case the term 'the domestic industry' may be constructed as referring to the rest of the producers”.
19. The Authority notes that the applicant, M/s Chemplast Sanmar Limited, together with the supporter, M/s Finolex Industries Limited, constitute 100% of the total Indian production.
20. It is also seen that the applicant has not imported the product under consideration. Further, it is not related to any producer/exporter from the subject countries and is not related to any importer of the subject goods in India.
21. Therefore, the Authority preliminarily concludes that the applicant, M/s Chemplast Sanmar Limited, constitutes the 'domestic industry' within the meaning of Rule 2(b) of the Rules and considers that the application satisfies the criteria of standing in terms of Rule 5(3).

E. CONFIDENTIALITY
E.1 Submissions made on behalf of the opposing interested parties.
22. The opposing interested parties have made the following submissions on confidentiality.
a. Support letter from Finolex Industries Limited has been claimed completely confidential without providing information on the trend of production and sales.

E.2 Submissions made on behalf of the domestic industry.
23. The domestic industry has submitted as follows with regards to confidentiality.
b. The non-confidential version of the questionnaire response is required to contain the confidential information adequately summarized. However, the non-confidential responses filed by the participating producers have not been adequately summarized.
c. The producers have filed responses in violation of Trade Notice 10/2018 and therefore, their response should be rejected.
d. Formosa Industries (Ningbo) Co., Ltd. has not reported the list of adjustments in the domestic or export selling price, channel of distribution, list of related parties engaged in the production and sale of the product under consideration, list of raw materials and reply to whether raw material has been purchased captively.
e. Shenyang Chemical Co., Ltd., and Linkland Enterprise Shanghai Co., Ltd have not reported the list of adjustments claimed in normal value and export price.
f. Thai Polyethylene Co., Ltd. and TPC Paste Resin Co Ltd. have not reported the list of adjustments in the domestic or export selling price, channel of distribution, list of related parties engaged in the production and sale of the product under consideration, list of raw materials and reply to whether raw material has been purchased captively.

E.3 Examination by the Authority
24. The Authority made available non-confidential version of the information provided by various interested parties to all interested parties as per Rule 6(7) and Trade Notice 10/2018 dated 7th September 2018 read with Trade Notice 01/2020 (as extended by the Authority till further notice).
25. With regard to confidentiality of information, Rule 7 of AD Rules, 1995 provides as follows:
"Confidential information: (1) Notwithstanding anything contained in sub-rules (2), (3) and (7) of rule 6, sub-rule (2) of rule 12, sub-rule (4) of rule 15 and subrule (4) of rule 17, the copies of applications received under sub-rule (1) of rule 5, or any other information provided to the designated the Authority on a confidential basis by any party in the course of investigation, shall, upon the Designated authority being satisfied as to its confidentiality, be treated as such by it and no such information shall be disclosed to any other party without specific authorization of the party providing such information.
(2) The Designated Authority may require the parties providing information on confidential basis to furnish non-confidential summary thereof and if, in the opinion of a party providing such information, such information is not susceptible of summary, such party may submit to Designated Authority a statement of reasons why summarization is not possible.
(3) Notwithstanding anything contained in sub-rule (2), if the Designated Authority is satisfied that the request for confidentiality is not warranted or the supplier of the information is either unwilling to make the information public or to authorise its disclosure in a generalized or summary form, it may disregard such information."
26. The Authority takes note of the submissions made by the applicant with respect to the confidentiality claims of the interested parties and is of the view that the interested parties in their NCV versions of their responses have not even disclosed the specific terms under which adjustments have been claimed by them to arrive at the normal value and the export price. The interested parties have summarily claimed the entire information as 'business sensitive/propriety information'. The Authority, therefore, considers such claims to be excessively confidential which has prevented the domestic industry from making any meaningful comments on the same.
27. The Authority will provide an opportunity to all the interested parties to submit the revised NCV version after making the appropriate changes as mentioned above.

F. NORMAL VALUE, EXPORT PRICE & DUMPING MARGIN
F.1 Submissions made on behalf of the opposing interested parties.
28. The opposing interested parties have submitted as follows with regards to market economy treatment, normal value, and export price:
a. 15 years for disregarding the domestic prices or costs of Chinese producers not being on market economy conditions as provided in para 15(a)(ii) of the Protocol of Accession of the People's Republic of China to WTO, has expired on 11th December 2016 in terms of para 15(d).
b. Formosa Industries (Ningbo) Co., Ltd., has claimed Market Economy treatment/status and has accordingly filed Supplementary Questionnaire for Market Economy status.
c. The domestic industry has inflated the normal value by adopting its own cost of production.

F.2 Submissions made on behalf of the domestic industry.
29. The domestic industry has submitted as follows with regards to market economy treatment, normal value, and export price:
a. Even though the provisions of Article 15(a)(ii) have expired, WTO members are required to consider domestic prices or costs in China PR only if the producers under investigation can clearly show that market economy conditions prevail in the industry producing the like product with regard to the manufacture, production and sale of that product as per Article 15(a)(i), which the Chinese producers in the present case have not shown.
b. No verifiable evidence of the actual selling price or cost in a market economy third country is available for determining normal value for China PR.
c. The product under consideration does not have a dedicated code in majority of the countries and therefore, normal value cannot be determined based on import or export price from these countries.

F.3 Examination by the Authority.
Market economy treatment
30. The authority considers that Formosa Industries (Ningbo) Co., Ltd, China PR has not conclusively established that the prices of inputs relating to utilities are reflective of market price. Further, it is noted that the exporter has provided no information to establish that the investment made by the company in acquiring land and plant and machineries was not distorted due to possible State interference in this regard. The Authority considers that these parameters have direct bearing on the eventual cost of production. It is seen that the company has borrowed some loan from within China. The exporter has not provided any information to demonstrate that the cost incurred on this account are reflective of market rates. Further it is noted that the exporter has not shown whether there was any government intervention in acquiring the land on which the plant is set up.
31. It is thus noted that the information provided by the exporter does not conclusively establish that the decisions of the company regarding prices, costs and inputs, including cost of output, sales and investment, are made in response to market signals reflecting supply and demand and without significant State interference in this regard. Therefore, the Authority has not accepted the claim of market economy treatment at this stage, pending further investigation and for the purpose of present preliminary determination.
32. Under section 9A(1)(c), the normal value in relation to an article means:
i) The comparable price, in the ordinary course of trade, for the like article, when meant for consumption in the exporting country or territory as determined in accordance with the rules made under sub-section (6), or
ii) when there are no sales of the like article in the ordinary course of trade in the domestic market of the exporting country or territory, or when because of the particular market situation or low volume of the sales in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either:
(a) comparable representative price of the like article when exported from the exporting country or territory or an appropriate third country as determined in accordance with the rules made under sub-section (6); or
the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling, and general costs, and for profits, as determined in accordance with the rules made under sub-section (6);
(b) Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transshipped through the country of export or such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin.
33. The Authority notes that the following exporters of the subject goods have filed exporter's questionnaire responses: -
a. Formosa Industries (Ningbo) Co., Ltd, China PR.
b. Grand Dignity Industrial Co. Ltd, China PR
c. Shenyang Chemical Co. Ltd., China PR.
d. Linkland Enterprise Shanghai Co., Ltd, China PR.
e. M/S Hanwha Solution Corporation, Korea RP.
f. Kaneka Paste Polymers SDN BHD, Malaysia.
g. Formosa Plastics Corporation, Taiwan.
h. Thai Polyethylene Co., Ltd, Thailand.
i. TPC Paste Resin Co., Ltd, Thailand.
34. The domestic industry has submitted that China PR was earlier a net importer of the product under consideration. The Covid outbreak had led to increase in the demand for the PVC based gloves which resulted into significant capacity expansion in China. However, as the demand of gloves eased down, the domestic demand of PVC paste resin declined significantly in China.
35. It has also been claimed that the demand supply situation has been further aggravated due to the decline in the demand of textile/apparel in China (zero Covid policy) and other European countries (due to inflation issues).

F.3.1 Sales pattern of participating producers from the subject countries.
36. In order to examine the submission made by the domestic industry, the Authority has examined the response filed by the participating producers. The table below shows the domestic sales of all the participating producers based on the response filed by them.
+--------+-----------------------------------+---------+-------+-------+-------+-----+
| S.No.  | Particular                        | UOM     | 2019  | 2020  | 2021  | POI |
+========+===================================+=========+=======+=======+=======+=====+
| 1      | Formosa Industries (Ningbo) Co. Ltd.| MT      | ***   | ***   | ***   | *** |
|        |                                   | Trend   | 100   | 105   | 113   | 113 |
+--------+-----------------------------------+---------+-------+-------+-------+-----+
| 2      | Shenyang Chemical Co. Ltd.        | MT      | ***   | ***   | ***   | *** |
|        |                                   | Trend   | 100   | 79    | 77    | 72  |
+--------+-----------------------------------+---------+-------+-------+-------+-----+
| 3      | M/S Hanwha Solution Corporation   | MT      | ***   | ***   | ***   | *** |
|        |                                   | Trend   | 100   | 112   | 97    | 91  |
+--------+-----------------------------------+---------+-------+-------+-------+-----+
| 4      | Kaneka Paste Polymers SDN BHD     | MT      | ***   | ***   | ***   | *** |
|        |                                   | Trend   | 100   | 365   | 86    | 96  |
+--------+-----------------------------------+---------+-------+-------+-------+-----+
| 5      | Formosa Plastics Corporation      | MT      | ***   | ***   | ***   | *** |
|        |                                   | Trend   | 100   | 86    | 62    | 55  |
+--------+-----------------------------------+---------+-------+-------+-------+-----+
| 6      | TPC Paste Resin, Ltd              | MT      | ***   | ***   | ***   | *** |
|        |                                   | Trend   | 100   | 102   | 94    | 94  |
+--------+-----------------------------------+---------+-------+-------+-------+-----+
37. It is seen that the domestic sales of all the producers have declined over the injury period. The decline in the domestic sales corelates with the submission of the domestic industry.

F.3.2 Normal value and export price for China PR.
F.3.2.a Normal value for China PR
Market Economy Status for Chinese Producers
a. Formosa Industries (Ningbo) Co., Ltd, China PR.
38. Formosa Industrial Co. Ltd, China PR. has filed a questionnaire response and has claimed MET treatment.
39. Article 15 of China's Accession Protocol in WTO provides as follows: "Article VI of the GATT 1994, the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 ("Anti-Dumping Agreement") and the SCM Agreement shall apply in proceedings involving imports of Chinese origin into a WTO Member consistent with the following:
(a) In determining price comparability under Article VI of the GATT 1994 and the Anti-Dumping Agreement, the importing WTO Member shall use either Chinese prices or costs for the industry under investigation or a methodology that is not based on a strict comparison with domestic prices or costs in China based on the following rules:
(i) If the producers under investigation can clearly show that market economy conditions prevail in the industry producing the like product with regard to the manufacture, production and sale of that product, the importing WTO Member shall use Chinese prices or costs for the industry under investigation in determining price comparability;
(ii) The importing WO Member may use a methodology that is not based on a strict comparison with domestic prices or costs in China if the producers under investigation cannot clearly show that market economy conditions prevail in the industry producing the like product with regard to manufacture, production and sale of that product.
(b) In proceedings under Parts II, III and V of the SCM Agreement, when addressing subsidies described in Articles 14(a), 14(b), 14(c) and 14(d), relevant provisions of the SCM Agreement shall apply; however, if there are special difficulties in that application, the importing WTO member may then use methodologies for identifying and measuring the subsidy benefit which take into account the possibility that prevailing terms and conditions in China may not always be available as appropriate benchmarks. In applying such methodologies, where practicable, the importing WTO Member should adjust such prevailing terms and conditions before considering the use of terms and conditions prevailing outside China.
(c) The importing WTO Member shall notify methodologies used in accordance with subparagraph (a) to the Committee on Anti-Dumping Practices and shall notify methodologies used in accordance with subparagraph (b) to the Committee on Subsidies and Countervailing Measures.
(d) Once China has established, under the national law of the importing WTO Member, that it is a market economy, the provisions of subparagraph (a) shall be terminated provided that the importing Member's national law contains market economy criteria as of the date of accession. In any event, the provision of subparagraph (a)(ii) shall expire 15 years after the date of accession. In addition, should China establish, pursuant to the national law of the importing WTO member, that market economy conditions prevail in a particular industry or sector, the nonmarket economy provisions of subparagraph (a) shall no longer apply to that industry or sector."
40. It is noted that while the provision contained in Article 15 (a) (ii) have expired on 11.12.2016, the provision under Article 2.2.1.1 of WTO, read with obligation under 15 (a) (i) of the Accession Protocol require the criterion stipulated in Para 8 of the Annexure I of the Rules to be satisfied through the information/data to be provided in the supplementary questionnaire for claiming the market economy status. The Authority has at this stage, not accepted the response filed by the market economy treatment claimed by the producer.

b. Shenyang Chemical Co. Ltd., China PR.
41. Shenyang Chemical Co. Ltd., China PR has filed a complete questionnaire response. The producer has exported directly as well as through exporter Linkland Enterprise Shanghai Co., Ltd. The producer has not claimed market economy treatment and therefore, its cost and selling price are not relevant.
42. The following producers from China had registered as interested parties in the investigation but not filed any response.
a. CNSIG Jilantai Chlor-Alkali Chemical Co., Ltd
b. China Salt Chemical Trading Co., Ltd
c. CNSIG Inner Mongolia Sodium Industry Co., Ltd.
d. CNSG Jilantai Polymer Materials Co., Ltd.
e. Tianwei Chemical Co. Ltd.
f. Ordos Junzheng Energy & Chemical Industry Co., Ltd

F.3.2b Export price for China PR.
a. Export price for Formosa Industrial Chemicals Co.
43. The producer has reported *** MT as exports of the product under consideration to India during the period of investigation. The producer has claimed that it has directly exported the product to India and no other related/unrelated party is involved in the export of the product under consideration. The producer has claimed adjustment on account of ocean freight, insurance, inland transportation, commission, COO charges, bank charges and packing cost. The Authority has accepted the adjustments claimed by the respondent on a preliminary basis at this stage. The net export price so determined is shown in the table below.

b. Export price for Shenyang Chemical Co. Ltd
44. The producer has reported *** MT as exports of the product under consideration to India during the period of investigation. The producer has claimed that it has directly exported the product to India as well as through another unrelated exporter. The producer and exporter have claimed adjustments on account of ocean freight, insurance, inland transportation, port and other expenses, bank charges and packing cost. The Authority has accepted the adjustments claimed by the respondent on preliminary basis at this stage. The net export price so determined is shown in the table below.

c. Export price for non-cooperative exporters/producers
45. The export price for non-cooperative producers/exporters from China PR has been determined based on facts available in terms of Rule 6(8) of the Rules. The net export price so determined is mentioned in the dumping margin table below.

F.3.3. Normal value and export price for Korea RP.
46. Hanwha Solution Corporation, Korea RP has filed a questionnaire response from Korea.

F.3.3a Normal value for Korea RP.
a. Normal value for responding producer – M/S Hanwha Solution Corporation
47. The producer has reported domestic sales of *** MT having a value of *** USD'000 in the period of investigation. The producer has claimed that all domestic sales are to unrelated parties. The producer has claimed adjustments on account of inland transportation, credit cost and packing cost. The cost of production as claimed by the respondent has been provisionally accepted at this stage and the Authority has carried out ordinary course of trade ("OCT") test.
48. The Authority has preliminarily accepted the claims made by the respondent at this stage with regard to adjustments in the normal value. The ex-factory normal value so determined has been mentioned in the dumping margin table below.

b. Normal value for non-cooperating producers.
49. The normal value for non-cooperative producers/exporters from the Korea RP has been determined based on facts available in terms of Rule 6(8) of the Rules. The normal value so determined is mentioned in the dumping margin table below.

F.3.3b Export price for Korea RP.
a. Export price for responding producer – M/S Hanwha Solution Corporation
50. The producer has reported *** MT as exports of the product under consideration to India during the period of investigation. The producer has claimed that it has directly exported the product to India and no other related/unrelated party is involved in the export of the product under consideration. The producer has claimed adjustments on account of ocean freight, marine insurance, inland transportation, domestic handling charge, domestic brokerage, credit cost, bank charges and packing cost. The Authority has accepted the adjustments claimed by the respondent on preliminary basis at this stage. The net export price so determined is shown in the table below.

b. Export price for non-co-operative exporters/producers.
51. The export price for non-cooperative producers/exporters from Korea RP has been determined based on facts available in terms of Rule 6(8) of the Rules. The net export price so determined is mentioned in the dumping margin table below.

F.3.4 Normal value and export price for Malaysia.
52. Kaneka Paste Polymers SDN BHD, Malaysia has filed a questionnaire response from Malaysia.

F.3.4a Normal value for Malaysia.
a. Normal value for responding producer - Kaneka Paste Polymers SDN BHD
53. The producer has reported domestic sales of ***MT having a value of ***USD'000 in the period of investigation. The producer has claimed that all domestic sales are to unrelated parties. The producer has claimed adjustments on account of ocean freight, insurance, credit cost and packing cost. The cost of production as claimed by the respondent has been provisionally accepted at this stage and the Authority has carried out ordinary course of trade ("OCT") test.
54. The Authority has preliminarily accepted the claims made by the respondent at this stage with regard to adjustments in the normal value. The ex-factory normal value so determined has been mentioned in the dumping margin table below.

b. Normal value for non-cooperating producers.
55. The normal value for non-cooperative producers/exporters from the Malaysia has been determined based on facts available in terms of Rule 6(8) of the Rules. The normal value so determined is mentioned in the dumping margin table below.

F.3.4b Export price for Malaysia
a. Export price for responding producer - Kaneka Paste Polymers SDN BHD
56. The producer has reported *** MT as exports of the product under consideration to India during the period of investigation. The producer has claimed that it has directly exported the product to India and no other related/unrelated party is involved in the export of the product under consideration. The producer has claimed adjustments on account of ocean freight, insurance, port and other expenses, inland transportation, credit cost and packing cost. The Authority has accepted the adjustments claimed by the respondent on preliminary basis at this stage. The net export price so determined is shown in the table below.

b. Export price for non-co-operative exporters/producers.
57. The export price for non-cooperative producers/exporters from Malaysia has been determined based on facts available in terms of Rule 6(8) of the Rules. The net export price so determined is mentioned in the dumping margin table below.

F.3.5 Normal value and export price for Taiwan.
58. Formosa Plastics Corporation has filed a questionnaire response from Taiwan.

F.3.5a Normal value for Taiwan.
a. Normal value for responding producer - Formosa Plastics Corporation
59. The producer has reported domestic sales of *** MT having a value of *** USD’000 in the period of investigation. The producer has claimed that all domestic sales are to unrelated party. The producer has claimed adjustments on account of inland transportation, credit cost, packing cost, rebate and billing adjustment. The cost of sales as claimed by the respondents has been provisionally accepted and the Authority has carried out ordinary course of trade ("OCT") test. The Authority has preliminarily accepted the claims made by the respondent at this stage. The ex-factory normal value so determined has been mentioned in the dumping margin table below.

b. Normal value for non-cooperating producers.
60. The normal value for non-cooperative producers/exporters from the Taiwan has been determined based on facts available in terms of Rule 6(8) of the Rules. The normal value so determined is mentioned in the dumping margin table below.

F.3.5b Export price for Taiwan.
a. Export price for responding producer Formosa Plastics Corporation
61. The producer has reported *** MT as exports of the product under consideration to India during the period of investigation. The producer has claimed that it has exported the product through unrelated exporter. The producer and the exporter have claimed adjustments on account of ocean freight, insurance, inland transportation, documentation fee, harbor service fee, trade promotion fee, LC negotiation interest, commission, bank charge and packing cost. The Authority has accepted the adjustments claimed by the respondents on preliminary basis at this stage. The net export price so determined is shown in the table below.

b. Export price for non-co-operative exporters/producers.
62. The export price for non-cooperative producers/exporters from Taiwan has been determined based on facts available in terms of Rule 6(8) of the Rules. The net export price so determined is mentioned in the dumping margin table below.

F.3.6 Normal value and export price for Thailand.
63. TPC Paste Resin Co., Ltd has filed a questionnaire response from Thailand.

F.3.6a Normal value for Thailand.
a. Normal value for responding producer - TPC Paste Resin Co., Ltd
64. The producer has reported domestic sales of *** MT having a value of *** USD'000 in the period of investigation. The producer has claimed that all domestic sales are to the related party. The producer has claimed adjustments on account of discount, inland freight, credit cost, brand logo cost, technical support charges and other expenses. The cost of sales as claimed by the respondents has been provisionally accepted and the Authority has carried out ordinary course of trade (“OCT”) test. The Authority has preliminarily accepted the claims made by the respondent at this stage. The ex-factory normal value so determined has been mentioned in the dumping margin table below.

b. Normal value for non-cooperating producers.
65. The normal value for non-cooperative producers/exporters from Thailand has been determined based on facts available in terms of Rule 6(8) of the Rules. The net normal value so determined is mentioned in the dumping margin table below.

F.3.6b Export price for Thailand.
a. Export price for responding producer - TPC Paste Resin Co., Ltd
66. The producer has reported *** MT as exports of the product under consideration to India during the period of investigation. The producer has exported through the related trade. The producer and the trader have claimed adjustments on account of discount, inland transportation, credit cost, brand logo cost and technical support charges. The Authority has accepted the adjustments claimed by the respondents on preliminary basis at this stage. The net export price so determined is shown in the table below.

b. Export price for non-co-operative exporters/producers.
67. The export price for non-cooperative producers/exporters from Thailand has been determined based on facts available in terms of Rule 6(8) of the Rules. The net export price so determined is mentioned in the dumping margin table below.

F.3.7 Normal value and export price for Norway.
68. M/s. Inovyn Norge AS and M/s Inovyn Europe Limited from Norway had registered as interested party. However, the producer and exporter did not file any questionnaire response. The producer had only requested for exclusion of BIOVYN grade from the scope of the product under consideration. The request made by the producer has been provisionally accepted at this stage. However, the producer has not filed any questionnaire response claiming an individual dumping and injury margin. Therefore, the producer has been treated as non-cooperative to that extent.

F.3.7.a Normal value for Norway.
69. The normal value for Norway has been determined based on facts available in terms of Rule 6(8) of the Rules. The normal value so determined is mentioned in the dumping margin table below.

F.3.7.b Export price for Norway
70. The net export price for Norway has been determined based on facts available in terms of Rule 6(8) of the Rules. The net export price so determined is mentioned in the dumping margin table below.

F.3.8 Dumping margin.
71. Based on the normal value and export price determined above, the dumping margin for the participating and non-participating producers has been determined and is shown below.
+========+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| SN     | Particular                          | PCN       | Normal value USD/MT | Net export price    | Dumping margin      | Dumping margin % | Dumping margin  |
|        |                                     |           |                     | USD/MT              | USD/MT              |                  | Range           |
+========+=====================================+===========+=====================+=====================+=====================+==================+=================+
| 1      | China PR                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a Formosa Industries (Ningbo) Co., Ltd | Average   | ***                 | ***                 | ***                 | ***              | 60-70%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 60-70%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 60-70%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Shenyang Chemical Co. Ltd.        | Average   | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 40-50%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 10-20%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | c Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 80-90%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 2      | Korea RP                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a M/S Hanwha Solutions Corporation  | Average   | ***                 | ***                 | ***                 | ***              | Negative        |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | Negative        |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | Negative        |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 0-10%           |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 3      | Malaysia                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a Kaneka Paste Polymers SDN BHD     | Average   | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 30-40%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 30-40%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 4      | Taiwan                              |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a Formosa Plastics Corporation      | Average   | ***                 | ***                 | ***                 | ***              | 10-20%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 0-10%           |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 10-20%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 10-20%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 5      | Thailand                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a TPC Paste Resin Co., Ltd          | Average   | ***                 | ***                 | ***                 | ***              | 10-20%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 30-40%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 0-10%           |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 20-30%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 6      | Norway                              |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | Average                             | ***       | ***                 | ***                 | ***                 | 30-40%           |                 |
|        | Medium                              | ***       | ***                 | ***                 | ***                 | 30-40%           |                 |
|        | High                                | ***       | ***                 | ***                 | ***                 | 60-70%           |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+

G. INJURY AND CAUSAL LINK
G.1 Submissions made on behalf of the opposing interested parties.
72. The opposing interested parties have submitted as follows on the issue of injury and causal link:
a. The imports are happening due to the huge demand-supply gap in India.
b. The exporters have been able to increase their prices from Rs 75,047/MT in 2019-20 to Rs 100,872/MT in the period of investigation. The domestic industry cannot reasonably claim injury when prices of imports have increased.
c. Trade remedial measures are meant to be temporary in nature. Anti-dumping duties have been in force on the import of the product for a long period. The duties expired only in July 2021, and fresh proceedings have been initiated after less than three years of unencumbered imports. Re-imposition of the duty will result in duties on PVC Paste Resin becoming nearly permanent.
d. Pursuant to the Quality Control Order notified by the Government of India on 11 August 2023, BIS licenses have been mandated for imports of PVC Paste which will impact imports from all countries, including China PR.
e. The applicant has claimed that their cost of sales has increased over the injury period but the raw material price has declined. If the cost of their primary raw material has declined, the overall cost of production should also decline.
f. The decline in export price is due to the decline in cost of raw materials of the Chinese producers and not due to alleged dumping. The domestic selling price of Shenyang and Linkland is lower than their export price to India.
g. The capacity, production and capacity utilization of the domestic industry do not show any decline over the injury period.
h. Domestic sales of the domestic industry do not reflect any injury.
i. The domestic industry's export sales have declined sharply from 1,383 in 2020-21 to 423 in 2021-22 and 113 in 2022-23.
j. Average inventory of the domestic industry shows a decline which implies that it has been able to sell whatever it has produced.
k. The number of employees has increased while salaries and wages have declined.
l. Productivity of the domestic industry has increased in the period of investigation as compared to base year which shows no injury.
m. The domestic industry claims to be planning capacity addition in 2023-24, but work has even started on the expansion.

G.2 Submissions made on behalf of the domestic industry.
73. The domestic industry has submitted as follows on the issue of injury and causal link:
a. Earlier China was a net importer of the product under consideration. However, due to the increased demand for PVC-based gloves during COVID, the Chinese producers expanded their capacity significantly.
b. As the pandemic abated, demand for PVC-based gloves also declined. Further, there is a general decline in demand for textile apparel in China (due to the zero-COVID policy) and in Europe (due to the impact of inflation on the demand). The decline in the demand has impacted the operations of the exporters.
c. The landed price of the subject imports has not moved in step with the variable cost. Till 2021-22, the landed price was above the cost of sales and there was no dumping. However, since then, exporters have resorted to aggressive pricing.
d. Imports in 2019-20 and 2020-21 were below the domestic industry's cost of sales. However, there were remedies through the anti-dumping duty that was in force at the time.
e. Due to the nature of the production process and costs associated with plant shutdown, keeping capacities idle is not a commercially viable option. Therefore, any producer would prefer lowering prices over suspending production. As a result, the real form of injury being suffered is price injury, not volume injury.
f. Imports are undercutting the prices of the domestic industry by a significant margin.
g. The domestic industry maintains a price list for its products which is periodically revised based on the prices of imports. In the period of investigation, there was a 40% increase in the number of price revisions as compared to previous years.
h. The landed prices are below the cost of sales of the domestic industry, leading to losses.
i. The dumped imports are having a depressive effect on the domestic industry's prices.
j. The contribution earned is negative. The domestic industry is not just sustaining losses on fixed costs, but on every additional unit produced.
k. The domestic industry has suffered financial losses, cash losses and negative return on capital employed.
l. The productivity and capacity utilization of the domestic industry have not declined. While employment and wages are not dependent on the performance of the product, the future of employment is dependent on the performance of the product.
m. The dumped imports have adversely affected the capacity of the domestic industry to raise capital and earn a return on the capital employed.
n. Considering the growing demand for the product in India, the domestic industry has undertaken capacity expansion of 43,000 MT. These decisions were taken when the market conditions were fair and remunerative with no dumping. However, dumping of the product has impaired the expansion plans of the domestic industry. Planned expansion of further 37,000MT has been shelved.

G.3 Examination by the Authority
74. Rule 11 of the Rules read with Annexure II provides that an injury determination shall involve examination of factors that may indicate injury to the domestic industry, '... taking into account all relevant facts, including the volume of dumped imports, their effect on prices in the domestic market for like articles and the consequent effect of such imports on domestic producers of such articles...'.
75. In considering the effect of the dumped imports on prices, it is considered necessary to examine whether there has been significant price undercutting of the domestic like article by the dumped imports, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a significant degree.
76. Further, it is not necessary that all parameters of injury must show decline for there to be a positive determination of injury. Some parameters may show injury while some may not. The Authority considers all injury parameters and then arrives at a conclusion as to whether the domestic injury has or is likely to be injured from the dumped imports.
77. The relevant submissions of the domestic industry and other interested parties made at this stage are examined below.

Cumulative assessment of imports
78. Article 3.3 of WTO agreement and Para (iii) of Annexure II of the AD provide that in case where imports of a product from more than one country are being simultaneously subjected to anti-dumping investigation, the Authority will cumulatively assess the effect of such imports, in case it determines that:
a. The margin of dumping established in relation to the imports from each country is more than two percent expressed as percentage of export price and the volume of the imports from each country is three percent (or more) of the import of like article or where the export of individual countries is less than three percent, the imports collectively account for more than seven percent of the import of like article; and
b. Cumulative assessment of the effect of imports is appropriate in light of the conditions of competition between the imported article and the like domestic articles.
79. An import statement showing country wise import statement in the period of investigation is given below.
+--------+---------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Countries           | UOM       | 2019-20   | 2020-21   | 2021-22   | 2022-23   | Share (%) |
|        |                     |           | Volume in MT                      |           | 2022-23   |
+========+=====================+===========+===========+===========+===========+===========+===========+
| 1      | China PR            | MT        | 12,182    | 1,127     | 15,560    | 19,359    | 24%       |
| 2      | Taiwan              | MT        | 11,402    | 1,325     | 11,048    | 13,060    | 16%       |
| 3      | Thailand            | MT        | 8,162     | 6,168     | 9,752     | 10,462    | 13%       |
| 4      | Korea Rp            | MT        | 6,380     | 1,104     | 5,111     | 10,143    | 12%       |
| 5      | Malaysia            | MT        | 4,904     | 1,546     | 6,938     | 10,135    | 12%       |
| 6      | Japan               | MT        | 7,767     | 5,019     | 6,265     | 5,043     | 6%        |
| 7      | Norway              | MT        | 281       | 3,062     | 1,465     | 4,416     | 5%        |
| 8      | EU                  | MT        | 6,887     | 7,835     | 4,717     | 6,234     | 8%        |
| 9      | USA                 | MT        | 11,037    | 7,573     | 3,583     | 1,958     | 2%        |
| 10     | Colombia            | MT        | 3,152     | 5,212     | 314       | 324       | 0%        |
| 11     | Hong Kong           | MT        | 160       | -         | 26        | 112       | 0%        |
| 12     | Vietnam Soc Rep     | MT        | -         | -         | -         | 54        | 0%        |
| 13     | UK                  | MT        | 151       | 88        | 82        | 40        | 0%        |
| 14     | UAE                 | MT        | 44        | 81        | 54        | -         | 0%        |
| 15     | Singapore           | MT        | -         | 54        | -         | -         | 0%        |
| 16     | Mexico              | MT        | 672       | 1,320     | -         | -         | 0%        |
| 17     | Russia              | MT        | -         | 842       | -         | -         | 0%        |
| 18     | Total               | MT        | 73,181    | 42,359    | 64,915    | 81,340    | 0%        |
+--------+---------------------+-----------+-----------+-----------+-----------+-----------+-----------+
80. The Authority notes that:
a. Imports from China, Korea, Malaysia, Norway, Taiwan and Thailand are at dumped prices.
b. The margins of dumping from each of the subject countries are more than the de minimis limits prescribed under the Rules.
c. The imports from these countries are above the de minimis limits prescribed under the Rules.
81. In order to ascertain whether cumulative assessment of the effect of imports is appropriate in light of the conditions of competition between the imported article and the like domestic articles, the following parameters have been examined:
a. Products supplied by different parties are like articles and are comparable in properties.
b. Domestically produced products and the imported products are interchangeable.
c. There is direct competition between the domestic product and the imported product and inter-se between the imported products.
d. Consumers are using domestic material and imported material interchangeably and the exporter and the domestic industry have sold the same product to same set of customers.
e. Import price from the subject countries have moved in tandem.
82. The import price from the subject countries (CIF basis) is given below:
+--------+-----------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Countries | UOM       | 2019-20   | 2020-21   | 2021-22   | 2022-23   |
+========+===========+===========+===========+===========+===========+===========+
| 1      | China PR  | Rs/MT     | 69,490    | 91,909    | 1,39,949  | 96,687    |
| 2      | Taiwan    | Rs/MT     | 75,503    | 97,081    | 1,21,759  | 98,249    |
| 3      | Thailand  | Rs/MT     | 78,750    | 97,277    | 1,43,935  | 1,01,433  |
| 4      | Korea Rp  | Rs/MT     | 78,542    | 82,299    | 1,48,664  | 1,02,615  |
| 5      | Malaysia  | Rs/MT     | 77,243    | 80,137    | 1,31,790  | 1,06,569  |
| 6      | Norway    | Rs/MT     | 75,247    | 71,720    | 1,33,251  | 92,502    |
+--------+-----------+-----------+-----------+-----------+-----------+-----------+
83. It is seen that the import price from the subject countries have moved in tandem with each other. The import price in the period of investigation have increased as compared to the base year. Further, as compared to the immediately preceding year, the import price has declined in the period of investigation.
84. The table below shows the import volumes from the subject countries over the injury period.
+--------+---------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Countries           | UOM       | 2019-20   | 2020-21   | 2021-22   | 2022-23   |
+========+=====================+===========+===========+===========+===========+===========+
| 1      | China PR            | MT        | 12,182    | 1,127     | 15,560    | 19,359    |
| 2      | Taiwan              | MT        | 11,402    | 1,325     | 11,048    | 13,060    |
| 3      | Thailand            | MT        | 8,162     | 6,168     | 9,752     | 10,462    |
| 4      | Korea Rp            | MT        | 6,380     | 1,104     | 5,111     | 10,143    |
| 5      | Malaysia            | MT        | 4,904     | 1,546     | 6,938     | 10,135    |
| 6      | Norway              | MT        | 281       | 3,062     | 1,465     | 4,416     |
+--------+---------------------+-----------+-----------+-----------+-----------+-----------+
85. It is seen that the import volume from the individual subject countries has moved in tandem with each other. When the demand declined in 2020-21, the imports from all the subject countries (barring Norway) declined. The import volume from the subject countries have increased in the period of investigation as compared to the immediately preceding year which shows the degree of competition between the imports from various sources.
86. The Authority has examined the transaction wise import data and found that the consumers have imported from the subject countries interchangeably. Furthermore, the domestic industry and the exporters have sold the same product to same set of customers. The domestic producers and exporters from the subject countries sell the like product to the same category of customers and both are competing in the same market. Both products are being used by the consumers interchangeably.
87. Rule 14 requires an investigation to be terminated against imports if the margin of dumping is less than two per cent of the export price. It is noted that the Authority has provisionally accepted the exporter's data without any detailed verification at this stage and has determined the dumping margin accordingly. Such determination, without any detailed verification of the exporter's data, has revealed the dumping margin for the said exporter to be de minimis. The Authority will undertake detailed verification at the time of issuance of the final findings. In view of the above, the Authority is not terminating the subject investigation against the said exporter at this stage.
88. In view of the above, the Authority considers it appropriate to cumulatively assess the effects of dumped imports of the product under consideration from the subject countries on the domestic industry.
89. Vide Notification No- 27/2016 dated 23rd June 2016, anti-dumping duties were in force on the imports of the product under consideration from China PR, Japan, Korea RP, Malaysia, Russia, Taiwan and Thailand. The duties expired on 22nd June 2021. Therefore, the prices in the year 2019-20 and 2020-21 were impacted by the anti-dumping duties in force. Therefore, the Authority has found it appropriate to compare the cost of sales and selling price of the domestic industry with the import prices in the period of investigation.

G.3.1 Assessment of the demand
90. The Authority has determined the demand or apparent consumption of the product in India as the sum of domestic sales of the domestic industry, the supporter and imports from all sources.
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars                 | UOM       | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+=============================+===========+===========+===========+===========+===========+
| 1      | Sales of the domestic industry | MT        | ***       | ***       | ***       | ***       |
|        | Trend                       | Indexed   | 100       | 97        | 101       | 107       |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| 2      | Sales of supporter          | MT        | ***       | ***       | ***       | ***       |
|        | Trend                       | Indexed   | 100       | 92        | 68        | 62        |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| 3      | Imports from the subject countries | MT        | 43,310    | 14,333    | 49,874    | 67,575    |
|        | Trend                       | Indexed   | 100       | 33        | 115       | 156       |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| 4      | Import from other countries | MT        | 8,162     | 6,168     | 9,752     | 10,462    |
|        | Trend                       | Indexed   | 100       | 76        | 119       | 128       |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| 5      | Demand/consumption          | MT        | ***       | ***       | ***       | ***       |
|        | Trend                       | Indexed   | 100       | 74        | 103       | 120       |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
91. It is seen that the total demand decreased in 2020-21 due to the outbreak of COVID-19. The demand has posted a steady increase after 2020-21.

G.3.2 Volume effect of dumped imports.
92. The effect of the volume of dumped imports from the subject countries has been examined to ascertain whether imports have increased either in absolute terms or in relation to production or consumption in India.
93. The volume of imports from various countries in absolute terms and in relation to production and consumption is as under:
+--------+------------------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars                  | UOM       | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+==============================+===========+===========+===========+===========+===========+
| 1      | The subject countries        | MT        | ***       | ***       | ***       | ***       |
+--------+------------------------------+-----------+-----------+-----------+-----------+-----------+
| 2      | Subject imports in relation to:|           |           |           |           |           |
+--------+------------------------------+-----------+-----------+-----------+-----------+-----------+
|        | a Indian production          | %         | ***       | ***       | ***       | ***       |
|        | Trend                        | Indexed   | 100       | 36        | 116       | 149       |
+--------+------------------------------+-----------+-----------+-----------+-----------+-----------+
|        | b The demand                 | %         | ***       | ***       | ***       | ***       |
|        | Trend                        | Indexed   | 100       | 45        | 111       | 130       |
+--------+------------------------------+-----------+-----------+-----------+-----------+-----------+
|        | c Total Imports              | %         | 84%       | 70%       | 84%       | 87%       |
+--------+------------------------------+-----------+-----------+-----------+-----------+-----------+
94. It is seen that the imports of the product under consideration declined in 2020-21 as the demand declined. However, with the increase in the demand in 2021-22, the imports have increased again. The imports have further increased in the period of investigation. The imports from the subject countries have increased in absolute terms and in relation to production, consumption and total imports. It is also seen that the imports have increased with the increase in demand and supply gap in the country.

G.3.3 Price effect of dumped imports
95. With regard to the effect of dumped imports on prices, the Authority is required to consider whether there has been significant price undercutting by the allegedly dumped imports as compared to the price of the like product in India or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases. which otherwise would have occurred, to a significant degree. In this regard, a comparison has been made between the landed value of the product from the subject countries and the average selling price of the domestic industry, net of all rebates and taxes, at the same level of trade. The prices of the domestic industry were determined at ex-factory level.

i. Price undercutting
96. The Authority compared the landed price of imports with the net sales realisation of the domestic industry.
+--------+--------------+-----------------------+---------------+--------------------+--------------------+--------------------+
| S. No. | Particular   | Net Sales Realisation | Landed Price  | Price Undercutting | Price Undercutting | Price Undercutting |
|        |              | Rs/MT                 | Rs/MT         | Rs/MT              | Rs/MT              | Rs/MT              |
+========+==============+=======================+===============+====================+====================+====================+
| 1      | China PR     | ***                   | 1,05,768      | ***                | ***                | 0-10%              |
| 2      | Taiwan       | ***                   | 1,07,300      | ***                | ***                | 0-10%              |
| 3      | Thailand     | ***                   | 1,08,927      | ***                | ***                | 0-10%              |
| 4      | Malaysia     | ***                   | 1,16,613      | ***                | ***                | Negative           |
| 5      | Korea RP     | ***                   | 1,11,059      | ***                | ***                | Negative           |
| 6      | Norway       | ***                   | 1,05,376      | ***                | ***                | 0-10%              |
| 7      | Average      | ***                   | 1,08,035      | ***                | ***                | 0-10%              |
+--------+--------------+-----------------------+---------------+--------------------+--------------------+--------------------+
97. It is seen that barring Malaysia and Korea RP, landed price of imports is below the prices of the domestic industry. Subject imports are undercutting the cost of sales as well as the selling price of the domestic industry.

ii. Price suppression/depression
98. The table below shows the changes in the cost of sales, selling price and landed price of imports.
+--------+--------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars  | UOM       | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+==============+===========+===========+===========+===========+===========+
| 1      | Cost of sales| ₹/MT      | ***       | ***       | ***       | ***       |
| 2      | Selling price| ₹/MT      | ***       | ***       | ***       | ***       |
| 3      | Landed Price | ₹/MT      | 81,932    | 95,907    | 1,49,961  | 1,08,035  |
+--------+--------------+-----------+-----------+-----------+-----------+-----------+
|        | Changes      |           |           |           |           |           |
+--------+--------------+-----------+-----------+-----------+-----------+-----------+
| 4      | Cost of sales| ₹/MT      | -         | ***       | ***       | ***       |
| 5      | Selling price| ₹/MT      | -         | ***       | ***       | ***       |
| 6      | Landed Price | ₹/MT      | -         | 13,975    | 54,054    | -41,926   |
+--------+--------------+-----------+-----------+-----------+-----------+-----------+
|        | Trend        |           |           |           |           |           |
+--------+--------------+-----------+-----------+-----------+-----------+-----------+
| 7      | Cost of sales| Index     | 100       | 106       | 140       | 148       |
| 8      | Selling price| Index     | 100       | 121       | 160       | 113       |
| 9      | Landed Price | Index     | 100       | 117       | 183       | 132       |
+--------+--------------+-----------+-----------+-----------+-----------+-----------+
99. It is seen that in the year 2019-20, the landed price of imports was below the cost of sales and selling price of the domestic industry. However, this was the period when anti-dumping duty was in force. In 2020-21, the cost of sales has increased by around Rs *** per MT (6 index points). The selling price increased by Rs *** (21 index points). This was due to the increase in the landed price of imports. In the year 2021-22, the cost of sales and selling price further increased.
100. In the period of investigation, while the cost of sales has increased by Rs *** per MT, the selling price has declined. The decline in selling price was due to the decline in the landed price of imports. The decline in landed price was higher than the decline in cost. The imports were undercutting the cost of sales as well as the selling price of the domestic industry.
101. It has also been submitted by the domestic industry that it had to make [**] price revisions during the period of investigation to keep pace with the continuously declining landed prices.
102. Therefore, the Authority provisionally concludes that selling price of the domestic industry has been depressed due to the dumped imports.

G.3.4 Economic parameters related to the domestic industry
i. Capacity, capacity utilisation, production and domestic sales
103. The following table shows capacity, production, capacity utilisation, domestic sales, export sales by the domestic industry over the injury period.
+--------+-----------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars           | UOM       | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+=======================+===========+===========+===========+===========+===========+
| 1      | Capacity              | MT        | ***       | ***       | ***       | ***       |
|        | Trend                 | Indexed   | 100       | 100       | 100       | 100       |
+--------+-----------------------+-----------+-----------+-----------+-----------+-----------+
| 2      | Production            | MT        | ***       | ***       | ***       | ***       |
|        | Trend                 | Indexed   | 100       | 91        | 99        | 105       |
+--------+-----------------------+-----------+-----------+-----------+-----------+-----------+
| 3      | Capacity Utilization  | %         | ***       | ***       | ***       | ***       |
|        | Trend                 | Indexed   | 100       | 91        | 99        | 105       |
+--------+-----------------------+-----------+-----------+-----------+-----------+-----------+
| 4      | Domestic Sales        | MT        | ***       | ***       | ***       | ***       |
|        | Trend                 | Indexed   | 100       | 97        | 101       | 107       |
+--------+-----------------------+-----------+-----------+-----------+-----------+-----------+
| 5      | Export sales          | MT        | ***       | ***       | ***       | ***       |
|        | Trend                 | Indexed   | 100       | 1,383     | 423       | 113       |
+--------+-----------------------+-----------+-----------+-----------+-----------+-----------+
104. It is seen that:
a. The capacity with the domestic industry has remained constant throughout the injury period. However, it has been stated that the domestic industry has expanded capacity in the post period of investigation. The domestic industry has increased its capacity by 43,000 MT.
b. The production and domestic sales of the domestic industry declined in 2020-21 due to decline in demand. The production and domestic sales have increased thereafter.
c. The exports of the domestic industry have declined and are insignificant in volume over the injury period. It is seen that the primary market for the domestic industry is the domestic market.
d. The domestic industry has submitted that because of the nature of the production process involved, suspension of the production in itself is a significant cost to the industry and any PVC paste producer will prefer to continue to produce and sell at lower prices rather than suspend its production.
e. The Authority notes that starting and stopping the complex chemical processes in a PVC resin plant can be expensive and time-consuming. This includes energy costs, potential material waste, and labour requirements. Frequent shutdowns and startups can increase wear and tear on machinery, potentially leading to higher maintenance costs and reduced equipment lifespan. Continuous operation helps maintain stable temperatures and pressures, which is ideal for the consistent production of high-quality PVC paste resin. Continuous operation also maximizes overall production output, which can help lower unit costs.
f. The domestic industry has not claimed volume injury.

ii. Inventories
105. The following table shows the opening, closing and average inventory of the domestic industry during the injury period.
+--------+-------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars       | Unit      | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+===================+===========+===========+===========+===========+===========+
| 1      | Opening inventory | MT        | ***       | ***       | ***       | ***       |
|        | Trend             | Indexed   | ***       | ***       | ***       | ***       |
+--------+-------------------+-----------+-----------+-----------+-----------+-----------+
| 2      | Closing inventory | MT        | ***       | ***       | ***       | ***       |
|        | Trend             | Indexed   | ***       | ***       | ***       | ***       |
+--------+-------------------+-----------+-----------+-----------+-----------+-----------+
| 3      | Average Inventory | MT        | ***       | ***       | ***       | ***       |
|        | Trend             | Indexed   | 100       | 76        | 17        | 35        |
+--------+-------------------+-----------+-----------+-----------+-----------+-----------+
106. It is seen that the closing inventory was high in the period of investigation due to COVID shutdowns. The closing inventory was declined in 2020-21 and has increased thereafter.

iii. Market share
107. The following table shows market share distribution in the Indian market over the injury period.
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars                 | UOM       | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+=============================+===========+===========+===========+===========+===========+
| 1      | Share of the domestic industry | %         | ***       | ***       | ***       | ***       |
|        | Trend                       | Indexed   | 100       | 132       | 98        | 89        |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| 2      | Share of other producers    | %         | ***       | ***       | ***       | ***       |
|        | Trend                       | Indexed   | 100       | 125       | 65        | 51        |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| 3      | Share of the subject countries | %         | ***       | ***       | ***       | ***       |
|        | Trend                       | Indexed   | 100       | 45        | 111       | 130       |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
| 4      | Share of other countries    | %         | ***       | ***       | ***       | ***       |
|        | Trend                       | Indexed   | 100       | 103       | 115       | 107       |
+--------+-----------------------------+-----------+-----------+-----------+-----------+-----------+
108. It is seen that the market share of the domestic industry increased in 2020-21 but has declined in the period of investigation. The market share of the subject countries declined in 2020-21 when the imports declined but has increased thereafter. The increase in the market share of the subject countries is also attributable to the demand and supply gap.

iv. Profit/loss, cash profit and return on capital invested.
109. The information regarding profitability is given below: -
+--------+-------------------------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars                         | UOM       | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+=====================================+===========+===========+===========+===========+===========+
| 1      | Profit/ (loss)                      | ₹/MT      | ***       | ***       | ***       | ***       |
|        | Trend                               | Indexed   | 100       | 227       | 293       | -125      |
+--------+-------------------------------------+-----------+-----------+-----------+-----------+-----------+
| 2      | Profit/ (loss)                      | ₹ Lacs    | ***       | ***       | ***       | ***       |
|        | Trend                               | Indexed   | 100       | 220       | 296       | -134      |
+--------+-------------------------------------+-----------+-----------+-----------+-----------+-----------+
| 3      | Cash Profit                         | ₹ Lacs    | ***       | ***       | ***       | ***       |
|        | Trend                               | Indexed   | 100       | 192       | 254       | -102      |
+--------+-------------------------------------+-----------+-----------+-----------+-----------+-----------+
| 4      | Profit before Interest and Tax (PBIT) | ₹ Lacs    | ***       | ***       | ***       | ***       |
|        | Trend                               | Indexed   | 100       | 253       | 253       | -84       |
+--------+-------------------------------------+-----------+-----------+-----------+-----------+-----------+
| 5      | Return on Capital Employed (ROCE) | %         | ***       | ***       | ***       | ***       |
|        | Trend                               | Indexed   | 100       | 258       | 217       | -77       |
+--------+-------------------------------------+-----------+-----------+-----------+-----------+-----------+
110. It is seen that:
a. The profitability of the domestic industry improved till 2021-22 but has declined thereafter. The domestic industry has suffered financial losses in the period of investigation.
b. The domestic industry has also suffered cash losses and negative return on capital employed.
111. The domestic industry has also claimed that such has been the adverse impact of the dumped imports that the domestic industry has been forced to sell below its variable cost. The table below shows the contribution earned by the domestic industry. Contribution has been calculated as selling price less raw material cost, utility cost, packing cost and other variable expenses.
+--------+---------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars         | UOM       | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+=====================+===========+===========+===========+===========+===========+
| 1      | Net sales realisation | Rs/MT     | ***       | ***       | ***       | ***       |
| 2      | Variable cost       | Rs/MT     | ***       | ***       | ***       | ***       |
| 3      | Contribution        | Rs/MT     | ***       | ***       | ***       | ***       |
| 4      | Trend               | Indexed   | 100       | 167       | 168       | -12       |
+--------+---------------------+-----------+-----------+-----------+-----------+-----------+
112. It is seen that the domestic industry's contribution increased till 2021-22 but has declined in the period of investigation. The contribution earned is negative in the period of investigation. Negative contribution shows that the adverse impact of the dumped imports is so significant that the domestic industry has been unable to fetch the cost incurred to produce each unit.

V. Employment, wages and productivity.
113. The information regarding employment, wages and productivity is given below: -
+--------+-------------------------+-----------+-----------+-----------+-----------+-----------+
| S. No. | Particulars             | Unit      | 2019-20   | 2020-21   | 2021-22   | POI       |
+========+=========================+===========+===========+===========+===========+===========+
| 1      | No. of employees        | Nos.      | ***       | ***       | ***       | ***       |
|        | Trend                   | Indexed   | 100       | 96        | 102       | 105       |
+--------+-------------------------+-----------+-----------+-----------+-----------+-----------+
| 2      | Salaries & Wages        | ₹ Lacs    | ***       | ***       | ***       | ***       |
|        | Trend                   | Indexed   | 100       | 87        | 84        | 94        |
+--------+-------------------------+-----------+-----------+-----------+-----------+-----------+
| 3      | Productivity per day    | MT/Days   | ***       | ***       | ***       | ***       |
|        | Trend                   | Indexed   | 100       | 91        | 99        | 105       |
+--------+-------------------------+-----------+-----------+-----------+-----------+-----------+
| 4      | Productivity per employee | MT/Nos    | ***       | ***       | ***       | ***       |
|        | Trend                   | Indexed   | 100       | 95        | 97        | 100       |
+--------+-------------------------+-----------+-----------+-----------+-----------+-----------+
114. It is seen that the number of employees has increased steadily over the injury period. The wages paid declined in 2020-21 and 2021-22 but increased thereafter. The productivity has moved in line with the production. The domestic industry has stated that third plant will come up if the performance of the product is reasonable enough to justify return.

vi. Growth.
115. The information regarding growth is given below: -
+--------+-----------------------------+-----------+-----------+-----------+-----------+
| S. No. | Particulars                 | UOM       | 2020-21   | 2021-22   | POI       |
+========+=============================+===========+===========+===========+===========+
| 1      | Production                  | %         | -9%       | 9%        | 6%        |
| 2      | Sales                       | %         | -3%       | 4%        | 6%        |
| 3      | Profit/(Loss) per unit      | %         | 127%      | 29%       | -143%     |
| 4      | Inventory                   | %         | -24%      | -77%      | 101%      |
| 5      | Market Share                | %         | 32%       | -26%      | -9%       |
| 6      | Profit Before Tax           | %         | 120%      | 34%       | -145%     |
| 7      | Cash Profit                 | %         | 92%       | 32%       | -140%     |
| 8      | Profit Before Interest and Tax | %         | 153%      | 0%        | -133%     |
| 9      | Return on Investment (ROI)  | %         | 158%      | -16%      | -135%     |
+--------+-----------------------------+-----------+-----------+-----------+-----------+
116. It is seen that that volume parameters showed a negative growth in the 2020-21 when the demand declined. The price parameters showed a positive growth in 2020-21. The year 2021-22 has seen a positive growth in almost all the parameters except return on investment and inventory. The period of investigation has seen a negative growth in all the price parameters. While the volume parameters have not shown a negative growth, it has been submitted that considering the nature of the product, it is not possible to suspend production.

vii. Ability to raise capital investment.
117. The domestic industry is in losses and operating at negative returns at capital employed. Therefore, the Authority provisionally holds that dumping of the product under consideration in the Indian market has impacted the ability to raise capital investment of the domestic industry.

viii. Margin of dumping.
118. The margin of dumping may be an indicator of the extent to which the dumped imports can cause injury to the domestic industry. The Authority has provisionally determined, as a part of this preliminary findings that the dumping margin of the cooperating exporters is significant during the period of investigation.

ix. Factors affecting prices of the domestic industry.
119. It is seen that barring the domestic industry, there is one other producer of the product in India which has supported the application. The capacity of the other producer is quite low considering the demand in the country. Therefore, the other producer cannot be a factor which has affected the prices of the domestic industry.
120. The landed prices are below the cost and selling price of the domestic industry. The landed price imports are depressing the prices of the domestic industry as a result of which the domestic industry has suffered financial losses. Therefore, the Authority provisionally holds that dumped imports are the only factor which are impacting the domestic prices.

X. Conclusions on injury
121. On the basis of the above analysis, the following can be provisionally concluded:
a. The volume of imports from the subject countries has increased in the period of investigation. The imports have increased in absolute terms and relative terms. However, the increase in the imports was due to large demand and supply gap in the country.
b. The landed price of import is below the selling price of the domestic industry in the period of investigation resulting in positive price undercutting.
c. The selling price of the domestic industry have not moved in line with the cost of sales. The low priced imports have prevented the domestic industry from increasing prices. The low priced imports have depressed the prices of the domestic industry.
d. The domestic industry has not suffered injury on volume parameters. The production and sales of the domestic industry have improved. The injurious impact of the dumped imports is felt on the price parameters only.
e. The domestic industry is incurring financial losses, cash losses and a negative return on capital employed.
f. The domestic industry has suffered negative contribution in the period of investigation.
g. The dumping of the product under consideration has impaired the expansion plans of the domestic industry.

H. NON-ATTRIBUTION ANALYSIS.
122. As per the Rules, the Authority, inter-alia, is required to examine any known factors other than the dumped imports which at the same time are injuring the domestic industry, so that the injury caused by these other factors may not be attributed to the dumped imports. The factors which may be relevant in this respect include, inter-alia, the volume and prices of the imports not sold at dumped prices, contraction in the demand or changes in the patterns of consumption, trade restrictive practices of and competition between the foreign and domestic producers, developments in technology and the export performance and the productivity of the domestic industry. It has been examined below whether factors other than dumped imports could have contributed to the injury.

a. Volume and price of imports from third countries.
123. In addition to the subject countries, imports above de-minimis limits are from European Union and Japan.
a. It is seen that the imports from Japan have declined in the period of investigation. Furthermore, the import price from Japan is higher than the import price from the subject countries and the selling price of the domestic industry. Therefore, imports from Japan could not have been a cause of injury suffered by the domestic industry.
b. It is seen that the imports from European Union have not shown any particular trend over the injury period. When the imports from the subject countries declined in the year 2020-21, the imports from European Union increased. While the imports from European Union have increased in the period of investigation, they are lower as compared to their level in 2019-20 and 2020-21. Further, it is also seen that the import price from European Union is relatively higher as compared to the import price. Therefore, imports from European Union could not have been a cause of injury suffered by the domestic industry.

b. Contraction in the demand
124. There has been a constant rise in the demand of the product concerned throughout the injury period. Therefore, decline in the demand is not a possible reason of injury to the domestic industry.

c. Pattern of consumption
125. No significant change in the pattern of consumption has come to the knowledge of the Authority, nor any interested party has made any submission in this regard.

d. Conditions of competition
126. There appears to be no such conditions of competition or trade restrictive practices that can be a cause of the claimed injury to the domestic industry.

e. Developments in technology
127. There appears to be no developments in technology, which could have caused injury to the domestic industry.

f. Export performance of the domestic industry
128. The price and profitability in the domestic and export market has been segregated by the Authority for the purpose of present injury assessment. Therefore, the analysis on injury is not misrepresentative due to possible inclusion of export performance.
129. It is seen that there are no other factors which could have caused material injury to the domestic industry. Therefore, the Authority provisionally holds that the material injury to the domestic industry has been caused by dumped imports as is established by below.
a. The cost of sales of the domestic industry has increased whereas the landed price of imports has declined. The landed price of imports is significantly below the cost of sales and the selling price of the domestic industry.
b. The domestic industry has been forced to reduce its price in line with the decline in the landed price. The domestic industry has made [***] price revisions in the period of investigation.
c. Continuous increase in the import at declining prices has resulted into the subject imports undercutting and depressing the prices of the domestic industry.
d. The price pressure caused by the dumped imports has led to financial losses, cash losses and a negative return on capital employed. The domestic industry has operated with negative contribution.

I. MAGNITUDE OF INJURY MARGIN.
130. The Authority has determined the non-injurious price for the applicants on the basis of principles laid down in the Rules read with Annexure III, as amended. The non-injurious price has been determined by adopting the information/data relating to the cost of production provided by the applicants. The non-injurious price has been compared with the landed price of the product under consideration from the subject countries for calculating injury margin. For determining the non-injurious price, the best quarterly utilization of the raw materials and utilities and best quarterly utilization of production capacity has been considered. Extraordinary or non-recurring expenses and/or assets have been excluded from the cost of production and/or NIP. A reasonable return (pre-tax @ 22%) on average capital employed (i.e., average net fixed assets plus average working capital) deployed for the product under consideration has been allowed for recovery of interest, corporate tax and profit to arrive at the non-injurious price as prescribed in Annexure III of the Rules.
+========+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| S. No. | Particular                          | PCN       | NIP USD/MT          | Landed price USD/MT | Injury margin USD/MT| Injury margin %  | Injury margin   |
|        |                                     |           |                     |                     |                     |                  | Range           |
+========+=====================================+===========+=====================+=====================+=====================+==================+=================+
| 1      | China PR                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a Formosa Industries (Ningbo) Co., Ltd | Total     | ***                 | ***                 | ***                 | ***              | 50-60%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 40-50%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 50-60%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Shenyang Chemical Co. Ltd.        | Total     | ***                 | ***                 | ***                 | ***              | 0-10%           |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | Negative        |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | c Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 50-60%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 2      | Korea RP                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a M/S Hanwha Solutions Corporation  | Total     | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 20-30%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 30-40%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 3      | Malaysia                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a Kaneka Paste Polymers SDN BHD     | Total     | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 20-30%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 30-40%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 4      | Taiwan                              |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a Formosa Plastics Corporation      | Total     | ***                 | ***                 | ***                 | ***              | 30-40%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 30-40%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 30-40%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 5      | Thailand                            |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | a TPC Paste Resin Co., Ltd          | Total     | ***                 | ***                 | ***                 | ***              | 20-30%          |
|        |                                     | Medium    | ***                 | ***                 | ***                 | ***              | 30-40%          |
|        |                                     | High      | ***                 | ***                 | ***                 | ***              | 10-20%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | b Any other                         | Average   | ***                 | ***                 | ***                 | ***              | 20-30%          |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
| 6      | Norway                              |           |                     |                     |                     |                  |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+
|        | Total                               | ***       | ***                 | ***                 | ***                 | 20-30%           |                 |
|        | Medium                              | ***       | ***                 | ***                 | ***                 | 20-30%           |                 |
|        | High                                | ***       | ***                 | ***                 | ***                 | 40-50%           |                 |
+--------+-------------------------------------+-----------+---------------------+---------------------+---------------------+------------------+-----------------+

J. ISSUES OF THE INDIAN INDUSTRY
J.1 Submissions made on behalf of the opposing interested parties.
131. The opposing interested parties have submitted as follows on the issue of Indian industry.
a. There is a huge demand supply gap, and the users are forced to import the product.
b. Anti-dumping duty were imposed on the product in the past as well and the protection by way of such measures were not utilized by the domestic industry to expand their capacity even by this time.
c. If the anti-dumping measures are imposed, the cost of production of the downstream industry will go up by 10-15%.
d. It is the inability of the domestic industry to supply all the required grades in required quantity that forces the users to import.
e. Several thousand end users in India are mostly in MSME category and the imposition of anti-dumping duty will adversely impact them.
f. Government of India is in the process of implementing mandatory standard certification requirement on PVC Paste Resin which will create a non-tariff barrier. Anti-dumping duty should be imposed keeping in mind the BIS standard proposed.
g. The domestic industry has already enjoyed the benefit of anti-dumping duty on the product under consideration imported from various countries for more than 15 years in the past.

J.2 Submissions made on behalf of the domestic industry.
132. The domestic industry has submitted as follows on the issue of Indian industry.
a. The domestic industry has undertaken capacity addition of 43,000 MT at a cost of Rs 350 Crore and is further undertaking capacity expansion of 35,000 MT. This will significantly bridge the demand and supply gap.
b. The impact of 20% increase in the price of PVC Paste on end products will be insignificant. The impact in case of top segment car, footwear and sofa set will be 0.03%, 0.15% and 0.15% only.
c. Synthetic leather is used only in high segment cars and not in case of low segment cars. Similarly, a consumer with a smaller pocket to spend on sofa will either buy a sofa with an average quality of synthetic leather wherein the share of the product under consideration is low or buy a sofa made out of fabric material only. Therefore, the impact of anti-dumping duty will not be felt by people with low paying capacity.
d. The domestic industry has never taken the complete benefit of anti-dumping duties. Considering the duties in force in the past, the landed price including anti-dumping duty was higher than the selling price of the Indian industry.
e. Duties have been imposed on the product in the past. Such imposition did not have any adverse impact at the time. Further, even the expiry of the duties failed to have a positive effect. The demand for the product has grown consistently even when the duties were in force.
f. The competitiveness of the downstream industries is unlikely to be impacted as exports of downstream products have remained consistent from the period when duties were in force to when duties expired.
g. Profits of the downstream industry move independently of the price of PVC paste. The profits earned from sales of artificial leather increased even when the price of PVC paste increased.
h. The downstream industry is a pass-through industry.
i. For artificial leather fabrics, the share of the product under consideration in the total cost is only 22%.
j. The CIF import price from the subject countries was Rs 1,33,427 per MT in 2021-22. Even after considering the anti-dumping measures, the landed price of imports will not increase to that level.
k. The product supplied by the domestic industry has a lower lead time as compared to the imported product. In fact, the average sea freight time from the subject countries ranges from 10 to 22 days.
l. The duty will not lead to a supply shortage as the domestic industry is undertaking capacity additions and the product under consideration is also imported from non-the subject countries at non-dumped prices.
m. The domestic industry has *** MT plant of ethylene di chloride and the entire production is consumed in the product. If the plant of the product under consideration is shutdown or production is suspended, it will adversely affect the ethylene di chloride plant as well.
n. Imposition of duty will create a level playing field and allow the domestic industry to compete in the market on fair terms and salvage their sharply deteriorating financial standing.
o. The purpose of anti-dumping duties is also recognized by the Hon'ble Supreme Court in Reliance Industries Ltd. v. The Designated Authority [2006 (202) E.L.T. 23 (S.C.)] wherein it was highlighted the role played by the anti-dumping law help in helping achieve India's national aim of creating a modern, highly industrialized, powerful state.

G.3 Examination by the Authority.
133. The Authority underscores that the primary objective of anti-dumping duties is to rectify the injury inflicted upon the domestic industry by the unjust trade practices of dumping, thereby fostering an environment of open and equitable competition in the Indian market. The recommendation, if any, of anti-dumping measures is not designed to curtail imports from the subject countries arbitrarily. Rather, it is based on a detailed analysis regarding dumping, injury and the causal link between the two and is a mechanism to ensure a level playing field. It is crucial to note that the essence of fair competition in the Indian market will remain unscathed by the presence of such measures. Far from diminishing competition, the anti-dumping measures serve to prevent the accrual of unfair advantages through dumping practices. It safeguards the consumers' access to a broad selection of the product under consideration. Thus, anti-dumping duties are not a hindrance but a facilitator of fair-trade practices.
134. The Authority issued initiation notification inviting views from all the interested parties, including importers, consumers and others. The Authority also prescribed a questionnaire for the users/consumers to provide relevant information about the present investigation including any possible effects of anti-dumping duty on their operations. The Authority issued gazette notification inviting views from all the interested parties, including importers. consumers and other interested parties. The Authority also prescribed a questionnaire for the consumers to provide relevant information with regard to the present investigations, including effect of an antidumping duty on their operations. The Authority sought information on interchangeability of the product supplied by various suppliers from different countries, ability of the domestic industry to switch sources, effect of anti-dumping duty on the consumers, factors that are likely to accelerate or delay the adjustment to the new situation caused by imposition of anti-dumping duty.
135. The following users registered themselves as an interested party in the present investigation.
+--------+-------------------------------------------------------------+
| S. No. | User/importer of the product under consideration in India   |
+========+=============================================================+
| 1      | AC Polycoaters Private Limited                              |
| 2      | Aritas Vinyl Private Limited                                |
| 3      | Arora Vinyl Private Limited                                 |
| 4      | AV Unicoaters Private Limited                               |
| 5      | Beeta Poly Coats Private Limited                            |
| 6      | Delite Collections Private Limited                          |
| 7      | Jasch Industries Limited                                    |
| 8      | Klassik Lamitex Private Limited                             |
| 9      | Marvel Vinyls Limited                                       |
| 10     | Mayur Uniquoters Limited                                    |
| 11     | Polynova Industries Limited                                 |
| 12     | Premier Poly film Limited                                   |
| 13     | Prerna Rex Private Limited                                  |
| 14     | Prerna Rex Private Limited                                  |
| 15     | RMG Polyvinyl India Limited                                 |
| 16     | Shiv Polymers                                               |
+--------+-------------------------------------------------------------+
136. The Authority has examined the submissions made by all the interested parties.
137. As regards the submission on huge the demand and supply gap, the Authority notes that the domestic industry has already undertaken capacity expansion of 43,000 MT at a cost of Rs 350 Crore. The domestic industry has additionally submitted that they had plans to further expand capacity by 35,000 MT. The domestic industry is currently catering to around ***% of the demand for the product in India. With the expansion already undertaken, it will be able to cater more than ***% the demand in the country. It is also seen that there is another producer catering to the demand in India and imports happening from various other sources as well. The Authority also notes that the demand-supply gap in the country does not bar the domestic industry from seeking redressal from dumped imports, nor it justify exports at dumping prices. As held by the CESTAT in the matter of DSM Idemitsu Limited vs. Designated Authority, the demand-supply gap does not justify dumping. The foreign producers can always meet the Indian the demand by selling the product at un-dumped prices. Even after the imposition of anti-dumping duty, the imports are not restricted in the country.
138. It is also seen that the imports of the product under consideration in the past were attracting anti-dumping duty. Based on the information on record, it is seen that despite there being anti-dumping duty, the demand for the product had continued to increase. While the demand decline in 2020-21, it was due to the Covid outbreak.
139. The domestic industry has provided the impact of anti-dumping duty on the eventual end product. It has been claimed that the downstream industry is a pass-through industry, and the impact of the anti-dumping duty will be on the end user. The domestic industry has provided the following impact.
+--------+-------------------------------------+---------------------------------+-----------+-----------+
| S. No. | Final downstream good               | Car (Top model in mid segment car)| Footwear  | Sofa set  |
+========+=====================================+=================================+===========+===========+
| 1      | Cost of end product                 | 11,00,000                       | 1,000     | 75,000    |
| 2      | Share of leather cloth in total cost| 0.68%                           | 3.50%     | 3.33%     |
| 3      | Share of PVC paste in total cost    | 0.15%                           | 0.77%     | 0.73%     |
| 4      | Impact of 20% anti-dumping duties   | 0.03%                           | 0.15%     | 0.15%     |
+--------+-------------------------------------+---------------------------------+-----------+-----------+
140. Based on the information on record, it is seen that the impact of duties will be insignificant.
141. The domestic industry has additionally claimed that the price of the product was higher in past, and the prices have declined only in the recent period. Even if anti-dumping duty of 20% is considered, the price including anti-dumping duty will be lower than the price in the past. Therefore, when the past high prices did not have any adverse impact on the users, the proposed measures will also not have any adverse impact. The Authority has examined the response filed by the participating users. It is seen that the downstream industry was earning healthy profits when the prices of the product under consideration were at all-time high.
142. Therefore, the Authority holds that though in the event of imposition of anti-dumping duties the price level of product in India may be affected but fair competition in the Indian market will not be reduced by such anti-dumping measures. On the contrary, the anti-dumping measures may mitigate the unfair advantage gained by dumping practices, which would arrest the decline of the domestic industry both material injury and would help maintain availability of wider choice to the consumers of subject goods.
143. Therefore, the Authority provisionally concludes that the imposition of anti-dumping duty will not have any adverse impact on public interest.

K. CONCLUSION & RECOMMENDATION
144. After examining the submission made by the interested parties and issues raised therein and considering the facts available on record, the Authority concludes that:
a. The product under consideration for the present investigation is 'Poly Vinyl Chloride Paste Resin', also known as Emulsion PVC Resin.
b. PVC Paste Resin with a K value below 60K, PVC Blending Resin, Co-polymers of PVC Paste Resin and Battery separator resins are outside the scope of the product under consideration.
c. Biovyn produced by Innovyn Europe Ltd is outside the scope of the product under consideration at this stage.
d. Chemplast Sanmar Limited, constitutes 'the 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).
e. Considering the normal value and export price for the product under consideration, the dumping margin for the product under consideration from the subject countries has been determined, and the margins are significantly positive. No reason has been provided by the exporters for such a significant degree of dumping.
f. The examination of the imports of the product under consideration shows that the volume of dumped imports from the subject countries have increased in the period of investigation. The imports have increased in both absolute terms and in relation to production and consumption.
g. The import price is below the selling price of the domestic industry resulting in price undercutting.
h. The import price has not moved in line with the cost of production which has prevented the domestic industry from increasing its prices in line with the increase in the cost of production. The imports have thus prevented the domestic industry from increasing its prices in line with the increase in the cost of production.
i. The domestic industry has not suffered injury on volume parameters. The production and sales of the domestic industry have improved. The injurious impact of the dumped imports is felt on the price parameters only.
j. The domestic industry is incurring financial losses, cash losses and a negative return on capital employed.
k. The domestic industry has suffered negative contribution in the period of investigation.
l. The dumping of the product under consideration has impaired the expansion plans of the domestic industry.
m. The injury margin determined for all the participating producers is positive.
n. The Authority has examined the submissions made by other parties on any other factors which could have caused injury to the domestic industry. No other factor appears to have caused injury to the domestic industry. The Authority preliminarily concludes that material injury suffered by the domestic industry has been caused by the dumped imports from the subject countries.
o. Imposition of anti-dumping duty would not affect the availability of the product to the customers. The imports of the product under consideration will continue to happen. The domestic industry has expanded its capacity and there are imports from non-the subject countries as well.
p. The Authority has quantified the impact of anti-dumping duty on the users. It is seen that the impact of the proposed measures on the eventual end consumers will be insignificant.
145. The Authority notes that investigation was initiated and notified to all interested parties and adequate opportunity was given to the domestic industry, exporters, importers, and other interested parties to provide positive information on the aspect of dumping, injury, causal link, and impact of recommended measures. Having initiated and conducted the investigation into dumping, injury, and causal link in terms of provisions laid down under the anti-dumping rules, the Authority is in view that imposition of provisional anti-dumping duty is required to offset the dumping and injury. The Authority considers it necessary and recommends imposition of provisional an anti-dumping duty on imports of subject goods from the subject countries.
146. In terms of provision contained in Rule 12 and Rule 13 read with Rule 4(d) of the Rules, the Authority recommends imposition of provisional anti-dumping duty equal to the lesser of margin of dumping and the margin of injury, so as to remove the injury to the domestic industry. Accordingly, the Authority recommends imposition of provisional anti-dumping duty on the imports of subject goods, originating in or exported from the subject countries, from the date of notification to be issued in this regard by the Central Government, equal to the amount mentioned in Col. 7 of the duty table appended below.
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| S. No. | Sub Heading     | Description of Goods          | Country of   | Country of            | Producer                         | Duty      |
|        | or Tariff Item  |                               | origin       | Export                |                                  | ($/MT)    |
+========+=================+===============================+==============+=======================+==================================+===========+
| 1      | 39041010        | 'Poly Vinyl Chloride Paste    | People's     | Any country           | Formosa Industries (Ningbo) Co. Ltd | 546       |
|        | 39041020        | Resin', also known as         | Republic of  | including People's    |                                  |           |
|        | 39041090        | Emulsion PVC Resin #          | China        | Republic of China     |                                  |           |
|        | 39042100        |                               |              |                       |                                  |           |
|        | 39042200        |                               |              |                       |                                  |           |
|        | 39043010        |                               |              |                       |                                  |           |
|        | 39043090        |                               |              |                       |                                  |           |
|        | 39049000        |                               |              |                       |                                  |           |
|        | 39044000        |                               |              |                       |                                  |           |
|        | 39049090 ##     |                               |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 2      | do              | 'Poly Vinyl Chloride Paste    | People's     | Any country           | Shenyang Chemical Co. Ltd.       | 115       |
|        |                 | Resin', also known as         | Republic of  | including People's    |                                  |           |
|        |                 | Emulsion PVC Resin #          | China        | Republic of China     |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 3      | do              | 'Poly Vinyl Chloride Paste    | People's     | Any country           | Any producer other than SN 1 and 2 mentioned above | 600       |
|        |                 | Resin', also known as         | Republic of  | including People's    |                                  |           |
|        |                 | Emulsion PVC Resin #          | China        | Republic of China     |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 4      | do              | 'Poly Vinyl Chloride Paste    | Any          | People's              | Any                              | 600       |
|        |                 | Resin', also known as         |              | Republic of China     |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 5      | do              | 'Poly Vinyl Chloride Paste    | Korea RP     | Any country           | Hanwha Solution Corporation      | Nil       |
|        |                 | Resin', also known as         |              | including Korea RP    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 6      | do              | 'Poly Vinyl Chloride Paste    | Korea RP     | Any country           | Any producer other than SN 5 mentioned above | 41        |
|        |                 | Resin', also known as         |              | including Korea RP    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 7      | do              | 'Poly Vinyl Chloride Paste    | Any          | Any country           | Any                              | 41        |
|        |                 | Resin', also known as         |              | including Korea RP    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 8      | do              | 'Poly Vinyl Chloride Paste    | Malaysia     | Any country           | Kaneka Paste Polymers SDN BHD    | 317       |
|        |                 | Resin', also known as         |              | including Malaysia    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 9      | do              | 'Poly Vinyl Chloride Paste    | Malaysia     | Any country           | Any producer other than SN 8 mentioned above | 375       |
|        |                 | Resin', also known as         |              | including Malaysia    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 10     | do              | 'Poly Vinyl Chloride Paste    | Any          | Any country           | Any                              | 375       |
|        |                 | Resin', also known as         |              | including Malaysia    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 11     | do              | 'Poly Vinyl Chloride Paste    | Taiwan       | Any country           | Formosa Plastics Corporation     | 118       |
|        |                 | Resin', also known as         |              | including Taiwan      |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 12     | do              | 'Poly Vinyl Chloride Paste    | Taiwan       | Any country           | Any producer other than SN 11 mentioned above | 168       |
|        |                 | Resin', also known as         |              | including Taiwan      |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 13     | do              | 'Poly Vinyl Chloride Paste    | Any          | Any country           | Any                              | 168       |
|        |                 | Resin', also known as         |              | including Taiwan      |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 14     | do              | 'Poly Vinyl Chloride Paste    | Thailand     | Any country           | TPC Paste Resin Co., Ltd         | 195       |
|        |                 | Resin', also known as         |              | including Thailand    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 15     | do              | 'Poly Vinyl Chloride Paste    | Thailand     | Any country           | Any producer other than SN 14 mentioned above | 252       |
|        |                 | Resin', also known as         |              | including Thailand    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 16     | do              | 'Poly Vinyl Chloride Paste    | Any          | Any country           | Any                              | 252       |
|        |                 | Resin', also known as         |              | including Thailand    |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 17     | do              | 'Poly Vinyl Chloride Paste    | Norway       | Any country           | Any                              | 328       |
|        |                 | Resin', also known as         |              | including Norway      |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
| 18     | do              | 'Poly Vinyl Chloride Paste    | Any          | Any country           | Any                              | 328       |
|        |                 | Resin', also known as         |              | including Norway      |                                  |           |
|        |                 | Emulsion PVC Resin #          |              |                       |                                  |           |
+--------+-----------------+-------------------------------+--------------+-----------------------+----------------------------------+-----------+
#The brand name “Biovyn” produced by Innovyn Europe Ltd. is outside the scope of the product under consideration.
## The customs classification is indicative only and not binding on the scope of the product under consideration.

L. FURTHER PROCEDURE
147. The procedure as below would be followed subsequent to notifying the preliminary findings:-
a. The Authority invites comments on these provisional findings from all the interested parties within 30 days from the publication of these findings and the same will be considered in the final finding.
b. The Authority would conduct oral hearing in accordance with Rule 6(6) of the Rules to give an opportunity to all interested parties to present their views relevant to the investigation.
c. The date of oral hearing will be announced on the DGTR website.
d. The Authority would conduct further verification to the extent necessary.
e. The Authority will disclose the essential facts as per the Rules before announcing the final findings.
ANANT SWARUP, Designated Authority

                

                
                
                
            

            
        


        
        

        
        
        

            

                

                    
                        
                    
                

                

                    
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                        Publication of Notification in respect of Manyata Promoters Private Limited for IT ITES SEZ at Villages Rachenahalli, Nagavara and Tanisandra, Bangalore District, Karnataka, for partial denotification of 1.4310 Ha out of 19.199 Ha
                    
                    09 Sep 2026
                

                
                

                    
                        Publication of notification in respect of Delta Electronics India Private Limited for Electronic Hardware and Software including Information Technology and Information Technology Enabled Services Special Economic Zone at Kurubarapalli, Krishnagiri District, Tamil Nadu, for addition of an area of 1.14 hectares thereby making resultant area as 12.10 Ha
                    
                    09 Sep 2026
                

                
                

                    
                        Publication of Notification in respect of Brahmani Infratech Limited for IT ITES SEZ at Mamidipalli Village, Saroornagar Mandal, Ranga Reddy District, Telangana, for Full denotification of 60.70 Ha
                    
                    09 Sep 2026
                

                
                

                    
                        Publication of notification in respect of Rackbank Datacenters Private Limited for IT ITES SEZ at Nava Raipur, Atal Nagar, Chhattisgarh, for addition of an area of 2.708437 hectares thereby making resultant area as 5.412488 Ha
                    
                    09 Sep 2026
                

                
                

                    
                        Corrigendum to Public Notice No 27 2026 2027 dated 20 08 2026 regarding Modalities for Application and Distribution of TRQ for Import of 10 Lakh MT of Raw Sugar and one time conversion from Advance Authorisation AA Scheme to Tariff Rate Quota TRQ Scheme
                    
                    07 Sep 2026
                

                
                

                    
                        Publication of notification Gujarat Industrial Development Corporation for Apparel Park at Khokhra, Ahmedabad, Gujarat, for partial denotification of 15.59989 Ha out of 20.41491 Ha.
                    
                    03 Sep 2026
                

                
                

                    
                        Modalities for Application and Allocation of Balance Quantity under TRQ Scheme for Import of 10 Lakh MT of Raw Sugar reg
                    
                    02 Sep 2026
                

                
                

                    
                        Publication of the Notification for Development Commissioner of SEZs Recruitment Rules, 2026
                    
                    01 Sep 2026
                

                
            

            

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