Ministry of Commerce-Anti-Dumping investigations concerning imports of Potassium Permanganate from China, Hong Kong and Taiwan-Preliminary findings

REGD. NO. D. L.-33004/99

The Gazette of India

EXTRAORDINARY

PARTI—Section 1

PUBLISHED BY AUTHORITY

No. 10] NEW DELHI, THURSDAY, JANUARY 4,2001/PAUSA14,1912

35 GI/2001

34 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—Sac, 1] _56 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. I] 78 THE GAZETTE OF INDIA : EXTRAORDINARY [PAUTI—SBC. 1] _9 3SAi|^oo -^10 THE GAZETTE OF INDIA ; EXTRAORDINARY [PART I—SEC, 1] 1112 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SHC. lj 1314 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 11 1516 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I ~ S E C. 1] _JJ Z5U\i.oo\ -318 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]

MINISTRY OF COMMERCE

NOTIFICATION

New Delhi, the 30th December, 2000

Subject: Anti-Dumping investigations concerning imports of Potassium Permanganate from

China, Hong Kong and Taiwan—Preliminary findings

No, 46/1/2000-DGAD.—Having regard to the Customs Tariff Act, 1975 and the Customs Tariff. (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury), Rules, 1995, thereof;

A. PROCEDURE:

1. The procedure given below has been followed with regard to the investigations:

i) lite Designated Authority (hereinafter referred to as Authority), iMder the above Rules, received a written petition from M/s Universal Chemicals & Industries Ltd., Mumbai, alleging dumping 0; Potassium Permanganate originating in or exported from China, Hi ng Kong and Taiwan.

ii) The preliminary scrutiny of the application revealed certain deficiencies, which were subsequently rectified by the petitioner. Th 'i petition was thereafter considered as properly documented.

iii) Th' - Authority on the basis of sufficient evidence submitted by the petdioner decided to initiate investigations against alleged dumping of imports of Potassium Permanganate originating in or exported from China, Hong Kong and Taiwan. The Authority notified the Embassy of the subject countries about the

receipt of dumping allegation before proceeding to initiate investigations in accordance with sub-rule 5(5) of the Rules.

19 iv) The Authority issued a Public Notice dated 30th October, 2000, published in the Gazette of India Extraordinary initiating anti- dumping investigations concerning imports of Potassium Permanganate classified under customs sub-heading no. 2841.61, of Chapter 28 of the Customs Tariff Act, 1975, originating in or exported from China, Hong Kong and Taiwan.

v) The Authority forwarded a copy of the Public Notice to the known exporters (whose details were made available by the petitioner) and industry associations and gave them an opportunity to make their views known in writing within forty days from the date of the letter.

vi) The Authority forwarded a copy of the Public Notice to the known importers (whose details were made available by the petitioner) of Potassium Permanganate and advised them to make their views known in writing within forty days from the date of the letter.

vii) Request was made to the Central Board of Excise and Customs (CBEC) to arrange details of imports of Potassium Permanganate.

viii) The Authority provided copies of the non-confidential Petition to the known exporters in accordance with Rule 6(3) supra.

ix) The Authority sent a questionnaire, to elicit relevant information to the following known exporters in China, Hong Kong and Taiwan in accordance with Rule 6(4);

China • China National Chemical Construction Corporation, Building No. 16, Qiqu Hepingli Beijing, 100013.

• Gunga Dong Chemicals & Import & Export Corporation, 61- Yan JainXilu, Guanghou.

Hong Kong • Chance World Trading,20 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC, l\ Unit 1303, Hangseng Mongkok Building, 677-Nathan Road, Kowloon.

Taiwan • Long Lwang Chemical Company Ltd., P.O. Box 1494, Kaohsiung.

• Joint Union Enterprises Company Ltd., 201-28, Tun Hwa North Road, Taipai 10591.

The exporters did not respond to the questionnaire.

The Embassy of China, the Trade Deptt. of Hong Kong Special Administrative Region Govt., and the Taipei Economic and Cultural Centre were informed about the initiation of the investigation in accordance with Rule 6(2) with a request to advise the exporters/producers from their countries to respond to the questionnaire within the prescribed time. A copy of the letter and questionnaire sent to the exporters was also sent to them, alongwith the name and addresses of the exporters.

x) A questionnaire was sent to the following known importers of Potassium Permanganate in calling for necessary information in accordance with Rule 6(4);

• Ravi Chemicals • Siris Ltd, Hyderabad • Chemiman, Vasai • Kanhaiyala & Co., Pune • Bora Agro Foods, Pune • Usha Chemicals Co., Mumbai • Granules India Ltd., Hyderabad.

A questionnaire was sent to the following known users of Potassium Permanganate in calling for necessary information in accordance with Rule 6(4);

21 • Alembic Chemical Works Co. Ltd., Baroda - 390 003 • Aarti Steels Ltd., Ludhiana- 141 010 • Ases Chemicals Works, Jodhpur - 342 001 • Asiatic Chemicals Co. (P) Ltd., Mumbai - 400 020 • Bharat Starch Industries Ltd., Ambala- Haryana- 135 001 • Binani Zinc Ltd., Kerala

• Borax Morarji Ltd., Ambernath - 421 501, Maharashtra • Century Enka Ltd., Mumbai - 400 021

• Harind Pharmaceuticals, Thana - 400 701, Maharashtra • Lotus Enterprise, Navi Mumbai - 400 705 • Modipro India, Navi Mumbai - 400 613 • Nice Chemicals, Eranakulam - 682 024, Kerala • Nirlon Ltd., Mumbai - 400 063

• Panyam Cements & Mineral Industries Ltd., Post Bangalore - 560 068, Karnataka

• Sona Chemical, Dist-Sangli, Maharashtra • Venkateshwara Hatcheries Ltd., Maharashtra

Response was filed by the following:

• Ases Chemical Works, Jodhpur

xi) The Authority made available the non-confidential version of the evidence presented by various interested parties in the form of a publip file kept open for inspection by the interested parties.

xii) Cost investigations were conducted to work out optimum cost of production and cost to make and sell the subject goods in India on the basis of Generally Accepted Accounting Principles (GAAP) on the information furnished by the petitioner so as to ascertain if anti-dumping duty lower than the dumping margin would be sufficient to remove injury to the domestic industry.

xiii) *** In this notification represents information furnished by an interested party on confidential basis and so considered by the Authority under the Rules.

xiv) Investigations were carried out for the period 1st April 1999 to 31st March 2000 (12 months).

B. PETITIONERS VIEWS

2. The petitioner has raised the following major issues in their petition and in their subsequent submissions:

i) Potassium Permanganate is a dark purple crystalline material. It is a compound of manganese, potassium and oxygen. The product is odourless and soluble in water. Potassium Permanganate is an inorganic chemical and is classified under custom sub-heading 2841.61 of the Customs Tariff Act, 1975.

ii) There are two technologies for production of Potassium Permanganate in the world. Thee are open-hearth roasters and liquid phase oxidiser systems. The latter technology is used by the petitioner whereas Chinese producers use both the technologies. The technology used by the producers in Hong Kong and Taiwan are not known.

iii) The dumping from China in the Indian Market started from 1992- 93. The industry was earlier forced to approach the Designated Authority for imposition of ant-dumping duty against China in view of material injury caused to the domestic industry as a result of these dumped imports. The investigations conducted by the Designated Authority confirmed large scale dumping of the said product. The Designated Authority had earlier conducted a review which again confirmed continued dumping and the need for continuation of duty. Imports from Taiwan and Hong Kong are a result of imposition of anti-dumping duty on imports from China Anti-dumping duty imposed expired on 5th September 2000 as the Designated Authority did not review the duties.

iv) There -are three companies including the petitioner who created capacity for production of Potassium Permanganate in India. M/s Curti Enterprises Ltd., Ponda, Goa and M/s Super Electro Manganese Chemicals, Kindai Goa also created capacity to produce the subject goods. However, these producers suspended 23 production long ago even prior to the investigations conducted by the Designated Authority earlier. The petitioner therefore accounts for 100% production of Potassium Permanganate and thefore constitutes domestic industry within the meaning of he rules.

v) There is no known significant difference in Potassium Permanganate produced by the Indian industry and Potassium Permanganate exported from China, Hong Kong and Taiwan which can have an impact on price. Potassium Permanganate produced by the Indian industry and imported from the subject countries is comparable in terms of physical and chemical characteristics, manufacturing process and technology, functions and uses, product specifications, pricing, distribution and marketing and tariff classification of the goods. The two are technically and commercially substitutable.

vi) The petitioner is exporting Potassium Permanganate regularly to a number of developed countries such as USA^ France, Germany , Jordan, Netherlands, Spain etc. The quantities and prices were as follows:-

C. VIEWS OF IMPORTERS, EXPORTERS AND OTHER INTERESTED PARTIES

3. Importers views

(A) Bora Agro Foods

1. (a) M/S Universal chemicals And Industries Ltd. Mumbai, is the only manufacturer/exporter of potassium permanganate (kmno4) in India, having limited production capacity (approx. 2000 Mts per annum).

Potassium permanganate has various applications in almost all fields including Agro Products, Aquaculture, Dyes, Hatcheries/Poultry's, Pharmaceuticals, Organic/Inorganic Chemicals, Metal industries, Textiles, Water Purification/Treatment etc.

b) Annual estimated domestic requirement of potassium permanganate in India is approximately about 3000-3500 Mts.

c) As there is wide gap in the demand and supply, there is always a shortfall in availability of potassium permanganate in India. Due to this shortfall, the supplies from M/S Universal Chemicals and Industries Ltd., have been erratic for the past several years.

d) Potassium permanganate (kmno4) is manufactured using Caustic Potash Lye (koh) and Manganese Dioxides (mno2). The manufacturing cost of potassium permanganate is estimated to be around Rs. 45,000/- PMT. However the basic sale price of M/S Universal Chemicals and industries Ltd., is around Rs. 65,000/- PMT for this product. Moreover around 50% of the domestic sales of Potassium permanganate manufactured by M/S Universal Chemicals and Industries Ltd., are done through Dealers/Traders and Repackers. Therefore the net price at which potassium Permanganate (manufactured by M/S Universal Chemicals And Industries Ltd.,) available in India is very high.

e) There is also a huge export potential for potassium permanganate to European Countries and the United States of America from India Understandably M/S Universal chemicals and Industries Ltd., also has export commitments. This further leads to the shortfall of potassium permanganate in India.

f) As a result of regular shortfalls the prices of potassium permanganate often rise drastically. During Such times, dealers/traders of M/S Universal Chemicals and Industries Ltd., offer potassium Permanganate at very high prices leading to high J25 input costs to actual consumers of potassium Permanganate in India.

g) As there is inconsistency in availability of potassium permanganate in India, consumers of potassium Permanganate suffers production losses. This has led to procurement of potassium permanganate from other sources, mainly from China, as the supplies have been regular.

h) Potassium permanganate is used in huge quantities in India by manufacturer/exporter of various Products. Due to erratic supplies and high cost of the indigenous potassium permanganate these Manufacturers lost competitiveness in the global market in terms of price and delivery schedules.

2. Details of purchase from indigenous manufacturer are as under:-

Qty. (Kgs)

Rate Per Unit Name of the Company

Net Value

—

—

(B)M/s Kanhaiyalal & Company

1. The views given by M/s Bora & Company at (a) to (i) above have been reiterated by this respondent and hence is not repeated.

2. Details of purchase from indigenous manufacturer were as given below:-

Rate Per Unit Name of the Company Qty. (Kgs) Net Value

—

—

—

Period 1997-98

2?(\lllot>(- k

* + *

1998-99 July-Sepl. j_Universal Chemicals Oct.-Dec.

**•

•** *** **•

2200 2500 1000

Aayush Enterprises Universal Chemicals Universal Chemicals

**#

1998-99 Apr.-June

• **

***

Oct.-Dec

•**

*•*

*•• • •• • •• *** **•

600 1400 3000 4000 6000

Universal Chemicals Universal Chemicals Bora Agro Foods Universal Chemicals Bora Agro Foods

1999- 2000

***

• **

*** •*•

8000 2000

Bhansali Chemicals Universal Chemicals

(t > Ases Chemical Works, Jodhpur 1. This respondent is a stockist for Potassium permanganate manufactured by M/S Universal Chemicals & Industries Ltd., Mumbai.

2. They have never imported potassium permanganate. 3. They have never marketed the said material of foreign origin.

4. Exporters Views (A) China The exporters from China did not respond to the questionnaire forwarded by the Authority.

(B) Hong Kong The exporters from Hong Kong did not respond to the questionnaire forwarded by the Authority.

(C) Taiwan

1. Joint Union Enterprise Co., Ltd. Taipei, in a letter to the Authority dated 15th November 2000, stated that Joint Union did not export Porassium Permanganate to India in the past years. They have requested for deletion of the company's name.

2. The Taipei Economic and Cultural Centre in a letter dated November 6 2000, has state that as per the record of import export statistics of Director General Customs in Taiwan, there is no record of 27 export of Potassium Permanganate to India between 1999-01 to 1999-12 and 2000-01 to 2000-08. Attachments of export data have been provided.

3. Long Hwang Chemical Co. Ltd., Taiwan

Vide letter dated 27th November, 2000 , this exporter has stated that Long Hwang did export this item to India in the past years. They have requested for deletion of the company's name from the anti- dumping investigations.

D. EXAMINATION OF THE ISSUES RAISED 5. The submissions made by the petitioner and importers to the extent they are relevant under the Rules and have a bearing upon the case, have been examined and dealt with at appropriate places hereunder.

E. PRODUCT UNDER INVESTIGATION

6. The product under consideration in the present investigation is Potassium Permanganate which is an organic chemical. Potassium Permanganate is a dark purple crystalline material. It is a compound of manganese, potassium and oxygen. The product is odourless and soluble in water. There is no viable substitute for Potassium Permanganate as per the information of the petitioner. The chemical formula of TMP is KMnO4.

The following broad classes of uses for the product have been reported:- (a) Oxidizing- organic substances, aluminium; (b) Bleaching- spinning fibre, straw paper; (c) Decolourising- volatile oils, wax, lacquers; (d) Production o f- saccharine, benzoic acid, Pharmaceuticals, fatty acids, nylon etc;

(e) Disinfection/fumigation- poultry-hatcheries (used with formaldehyde), removal/elimination of disease/germs;

(f) Tanning-leather, wood; (g) Purification of- water,alcohol.

Potassium Permanganate is classified under custom sub-heading 2841.61 of the Customs Tariff Act, 1975.

F. LIKE ARTICLES

In order to establish that Potassium Permanganate produced by the domestic industry is a Like Article to that exported from China, Hong Kong and Taiwan, characteristics such as technical specifications, manufacturing process, functions and uses and tariff classification have been considered by the Authority.

The Authority also finds that there is no argument disputing that Potassium Permanganate produced by the domestic industry has characteristics closely resembling the imported material and is substitutable by Potassium Permanganate imported from the subject country both commercially and technically. Potassium Permanganate produced by the domestic industry has been treated as Like Article to the product exported from China, Hong Kong and Taiwan within the meaning of Rule 2(d).

G.DOMESTIC INDUSTRY The petition has been filed by M/s. Universal Chemicals & Industries Ltd., Mumbai, alleging dumping of Potassium Permanganate originating in or exported from China, Hong Kong and Taiwan.

The production of Potassium Permanganate by the petitioner has been as under:-

The petitioners account for 100% of the total production in the POI as there are no other producers of the subject goods, The Authority notes therefore that the petitioner constitutes "domestic industry" and has the required standing to file the present petition under the Rules.

H. DUMPING

7. The Authority sent questionnaires to the known exporters from the subject country in terms of section 9 A (1). However, the exporters did 29 not respond with the information called for. Therefore there are no claims made by the exporters with regard to Normal Value and Export Price. The Authority has therefore been constrained to rely upon constructed price and best available information with regard to Normal Value and Export Price respectively.

I. EXAMINATION OF NORMAL VALUE AND EXPORT PRICE BASED ON CONSTRUCTED VALUE AND ON AVAILABLE INFORMATION WITH THE AUTHORITY

(i) NORMAL.VALUE

8.The Authority observes that the exporters from China, Hong Kong and Taiwan have not responded to the questionnaire in the prescribed format and have not furnished information relating to normal value, export price, and dumping margin. The Authority therefore considers the exporters to-be non-cooperative and has proceeded on best available information.

The petitioners have requested that the normal value in China, Hong Kong and Taiwan be accepted on the basis of constructed cost of production of Potassium Permanganate. In the circumstances the Authority has been constrained to determine the constructed cost.

The normal value in China, Hong Kong and Taiwan is therefore considered to be USD ***/kg or Rs ***/kg (Rs ***/MT) at an average exchange rate during POI of lUSDHRs 43.21.

(ii) Export Price

9.The cif price as per the information available with the Authority is determined at Rs ***/kg for China, Rs ***/kg for Hong Kong and ***/kg for Taiwan. The ex-factory export price has been determined after taking USD 0.50/kg as ocean freight (based on petitioner's market information and knowledge), 0.5% as marine insurance charges, commission @3% for the agent in the exporting countries, 2% for inland transportation and 2% for port handling and port charges as per the Indian experience. However, commission @3% for the Indian indenting agent as claimed by the petitioner is not allowed by the Authority for 3<:61^061-5-30 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] want of documentary evidence. After adjustments on these accounts the ex- factory fob export price is estimated to be Rs ***/kg or USD ***/kg for China, Rs ***/kg or USD ***/kg for Hong Kong and Rs ***/kg or USD ***/kg for Taiwan at an average exchange rate.of Rs 43.21=1USD.

(iii) Dumping margin

10. China Considering the constructed normal value at USD ***/kg and the ex- works export price at USD ***/kg, the dumping margin determined by the Authority comes to USD ***/kg (which is 68.13% of export price).

Hong Kong Considering the constructed normal value at USD ***/kg and the ex- works export price at USD ***/kg, the dumping margin determined by the Authority comes to USD ***/kg (which is 70% of export price).

Taiwan ConskW.ing the constructed normal value at USD ***/kg and the ex- works export price at USD ***/kg, the dumping margin determined by the Authority comes to USD ***/kg (which is 68.13% of export price).

j. INJU :Y The Authority notes that the margin of dumping and quantum of imports from the subject countries are more than the limits prescribed in Rule 11 Supra.

For the examination of the impact of imports on the domestic industry in India, the Authority has considered such further indices having a bearing on the state of the industry as production, capacity utilisation, quantum of sales, stock, profitability, net sales realisation, the magnitude and margin of dumping etc. in accordance wire Annexure II (iv) of the rules supra.

(a) Quantum of Imports

Quantity (kg.) Countries 1996-97 (as per

1998-99 (as per DGCIS)

1997-98 (as

per DGCIS)

DGCIS)

1999-2000 (as per DGCIS upto Nov.'99 31

M/s Sevak Prakasan, Mumbai.

The increase in the total imports of Potassium Permanganate was 63.46% in 1999-2000 over that of 1997-98 and 51.6% in 1999-2000 over 1998-99. Thus the quantum of imports have gone up during the period of investigation.

The quantum of imports from China have gone up by 22.8% in 1999- 2000 over 1998-99. Imports in 98-99 were largely from China. The share of China in total imports was 84%, 82.6%, 91.9% and 74.5% in 1996-97, 97*-98, 98-99 and 1999-2000, (POI) respectively.

(b) Production and Capacity Utilisation

The production capacity, actual production and capacity utilisation of the petitioners was as follows: -

The production and capacity utilisation of domestic industry has increased in the period of investigation. The domestic industry has stated that the increase in production and capacity utilisation resulting in increase in sales volumes of the domestic industry has not been of any help to the domestic industry in view of availability of dumped imports. In fact, the industry had made profits when the sales volumes were lower.

(0 Sales and Market Share

It is observed that the demand of Potassium Permanganate was 1207.3 MT, 1035.7 MT, 1225.7MT and 1383.6MT in 1996-97, 97-98, 98-99 and 99-2000 (POI) respectively. The share of imports in total demand was 10.8%, 18.2%, 16.8% and 21.4% in 1996-97, 97-98, 98-99 and 99- 2000 (POI) respectively. The share of the petitioner was 89.16%, 81.7%, 83.12% and 78.5% in 1996-97, 97-98, 98-99 and 99-2000(POI) respectively* Thus while the share of imports have been rising, the share of domestic industry has been declining. The selling prices of the petitioner were Rs ***/MT, Rs ***/MT, Rs ***/MT and Rs ***/MT in 96-97, 97-98, 98-99 and 99-2000 (POI) respectively.

(d)CIosing Stocks It is observed that the closing stocks of the petitioner went up by 143% in 97-98 over 96-97. Although they declined in 98-99 and 99-2000 from the level of closing stocks in 97-98, closing stocks increased by 61.8% over the level of 98-99.

97-98

98-99

96-97

43.35

150.55

90-2000 (POI) 70.15

Closing Slocks (MT) Universal Chemicals 61.75

(e)Price undercutting and price depression The selling prices of the domestic industry are insufficient to recover the full costs and are below the cost of production, resulting in severe financial losses to the domestic industry. The domestic industry has been forced to reduce its selling prices in spite of increase in the cost of production. Further, the imports from the subject country are significantly undercutting the prices of the domestic industry as the 33 landed price of the imported material is below the selling price of the domestic industry as illustrated in the table below: -

(ft Profitabilitv:- The domestic industry has been forced to reduce its selling prices below its cost of production, resulting in substantial financial losses. The injury to the domestic industry is evident from the per unit profit/loss made by the industry from sales in the domestic markets, as shown below:-

K. CONCLUSION ON INJURY 11. In view of the foregoing it is observed that:- (a) the quantum of imports from the subject countries have increased in absolute terms;

(b) the market share of the petitioner has gone down while that of imports has increased;

(c) the petitioners have been forced to sell at prices below their fair selling price resulting in losses;

(d) imports are undercutting the prices of the domestic industry; (e) the domestic industry is left with substantial closing stocks.

L. CAUSAL LINK 12. The Authority holds that the material injury to the domestic industry has been caused by imports from the subject countries. China is the main exporter of Potassium Permanganate to India. The increase in the market share of imports from China , Hong Kong and Taiwan34 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] resulted in the decline in the market share of the petitioner and undercut the prices of the domestic product forcing the domestic industry to sell below its non-injurious price which resultantly, the domestic industry was unable to recover. The material injury to the domestic industry was therefore caused by the dumped imports from the subject countries.

M.INDIAN INDUSTRY'S INTEREST & OTHER ISSUES 13. The purpose of anti-dumping duties, in general, is to eliminate dumping which is causing injury to the domestic industry and to re- establish a situation of open and fair competition in the Indian market, which is in the general interest of the country.

Some interested parties have stated that the annual estimated domestic requirement of potassium permanganate in India is approximately about 3000-3500 Mts. As there is wide gap in the demand and supply, there is always a shortfall in availability of potassium permanganate in India. However, as observed, the demand of Potassium Permanganate was 1207.3 MT, 1035.7 MT, 1225.7MT and 1383.6MT in 1996-97, 97-98, 98-99 and 99-2000 (POI) respectively and the capacity of the domestic industry is adequate to meet the requirements of demand. Interested parties have also argued there is also a huge export potential for potassium permanganate to European Countries and the USA from India. Since the petitioner also has export commitments, this leads to further shortfall of potassium permanganate in India. The Authority notes that the quantities exporter by the domestic industry have declined since 1996-97.

14. It is recognised that the imposition of anti-dumping duties might affect the price levels of the products manufactured using the subject goods and consequently might have some influence on relative competitiveness of these products. However, fair competition in the Indian market will not be reduced by the anti-dumping measures, particularly if the levy of the anti-dumping duty is restricted to an amount necessary to redress the injury to the domestic industry. On the contrary, imposition of anti-dumping measures would remove the unfair 35 advantages gained by dumping practices, would prevent the decline of the domestic industry and help maintain availability of wider choice to the consumers of Potassium Permanganate. Imposition of anti- dumping measures would not restrict imports from the subject countries in any way, and therefore would not affect the availability of the product to the consumers.

15. To ascertain the extent of anti-dumping duty necessary to remove the injury to the domestic industry, the Authority relied upon reasonable selling price of Potassium Permanganate in India for the domestic industry, by considering the optimum cost of production at optimum level of capacity utilisation for the domestic industry.

N. LANDED VALUE 16. The landed value of imports is determined on the basis of export price of Potassium Permanganate determined as detailed above in the para relating to dumping, after adding the prevailing level of customs duties and one per cent landing charges.

O. CONCLUSIONS 17. It is seen after considering the foregoing that:

(a) Potassium Permanganate described under para 6 originating in or exported from China, Hong Kong and Taiwan has been exported to India below normal value, resulting in dumping;

(b) the domestic industry has suffered injury;

(c) injury has been caused by imports from the subject countries.

18.It was decided to recommend the amount of anti-dumping duty equal to the margin of dumping which if levied, would remove the injury to the domestic industry. Accordingly, it is proposed that provisional anti-dumping duties be imposed, from the date of notification to be issued in this regard by the Central Government, on Potassium Permanganate originating in or exported from China, Hong Kong and Taiwan, falling under customs sub-heading no. 2841.61 of the Customs Tariff Act, pending final determination. The anti-dumping duty shall be the amount mentioned in Col.3.

19.Landed value of imports for the purpose shall be the assessable value as determined by Customs under the Customs Act, 1962 and all duties of customs except duties levied under Sections 3, 3A, 8B, 9 and 9A of the Customs Tariff Act, 1975.

P. FURTHER PROCEDURE

20. The following procedure would be followed subsequent to notifying the preliminary findings: a. The Authority invites comments on these findings from all interested parties and the same would be considered in the final findings; b. Exporters, importers, petitioner and other interested parties known to be concerned are being addressed separately by the Authority, who may make known their views, within forty days of the despatch of this notification. Any other interested party may also make known its views within forty days from the date of publication of these findings. c. The Authority would provide opportunity to all interested parties for oral submissions. d. The Authority would disclose essential facts before announcing the final findings.

L.V. SAPTHARISHI, Designated Authority Printed by the Manager, Govt of India Press, Ring Road, Mayapuri, New Delhi-110064

and Published by Ihe Controller of Publications, Delhi-110034.