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:

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.

iv)

The Authority issued a Public Notice dated 30^th October, 2000,

published in the Gazette of India Extraordinary initiating anti-

dumping

investigations

concerning

imports

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.

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,

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.

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);

•

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.

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC. 1]

xiv) Investigations were carried out for the period 1^st April 1999

to 31^st March 2000 (12 months).

B. PETITIONERS VIEWS

The petitioner has raised the following major issues in their

petition and in their subsequent submissions:

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 5^th 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

production long ago even prior to the investigations

conducted by the Designated Authority earlier. The petitioner

therefore

accounts

for

100%

production

Potassium

Permanganate and thefore constitutes domestic industry within the

meaning of he rules.

There

is no known

significant

difference

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:-

Qty(MT)

Fob/kg

1996-97

660.37

***

97-98

362.90

***

98-99

431

***

99-2000

463

***

2000-2001

(as

31/8/2000)

288

***

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).

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC. 1]

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

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.

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.

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.

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.

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.

Details of purchase from indigenous manufacturer are as under:-

Period

1997-98

1998-99

Apr.-June

July-Sept.

Oct.-Dec.

Jan-March

1999-

2000(POI)

Name of the Company

Universal Chemicals

Aayush Enterprises

Universal Chemicals

Goel Sons

Qty. (Kgs)

4000

1750

9000

3000

1000

3000

8500

2000

Net Value

—

*••

**•

***

*•*

**•

Rate Per Unit

—

***

**•

** *

***

(B)M/s Kanhaiyalal & Company

The views given by M/s Bora & Company at (a) to (i) above have

been reiterated by this respondent and hence is not repeated.

Details of purchase from indigenous manufacturer were as given

below:-

Period

1997-98

Name of the Company

Qty. (Kgs)

—

Net Value

—

Rate Per Unit

—

2?(\lllot>(- k

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC. I]

1998-99

July-Sepl.

j_Universal Chemicals

Oct.-Dec.

1998-99

Apr.-June

Oct.-Dec

1999-

2000

Aayush Enterprises

Universal Chemicals

Bora Agro Foods

Universal Chemicals

Bora Agro Foods

Bhansali Chemicals

Universal Chemicals

2200

2500

1000

600

1400

3000

4000

6000

8000

2000

•**

***

**•

*••

•••

***

**•

***

•*•

* + *

**•

**#

• **

***

•**

*•*

***

• **

(t > Ases Chemical Works, Jodhpur

This respondent is a stockist for Potassium permanganate

manufactured by M/S Universal Chemicals & Industries Ltd.,

Mumbai.

They have never imported potassium permanganate.

They have never marketed the said material of foreign origin.

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.

1. Joint Union Enterprise Co., Ltd. Taipei, in a letter to the Authority

dated 15^th 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

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 27^th 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 of- 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.

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC. 1]

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:-

Production

1996-97

1997-98

1998-99

1999-2000

Qty(MT)

1731.47

1451.425

1552.55

1873.4

Value (Rs lacs)

*••

••*

***

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

The Authority sent questionnaires to the known exporters from the

subject country in terms of section 9 A (1). However, the exporters did

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-

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

DGCIS)

1997-98 (as

per DGCIS)

1998-99 (as

per DGCIS)

1999-2000 (as

per

DGCIS

upto Nov.'99

Total imports

China

Hong Kong

Taiwan

Other countries

130,800

110,000

—

20,800

—

230,800

190,800

40,000

___

—

^48J00

228,800

—

20,000

—

rest secondary

source *)

377,273

281,000

42,800

41,993

11,480

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: -

Petitioners

Installed

Capacity

(MT)

Production

(MT)

Capacity

Utilisation%

1996-97

2040

1731.47

84.87

1997-98

2040

1451.425

7115

1998-99

2040

1552.55

76.11

1999-2000

2040

1873.4

91.83

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.

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC. 1)

(0 Sales and Market Share

Sales (MT)

Demand

dumped

imports %

petitioner %

1996-97

1076.05

1207.3

10.8

89.12

1997-98

1035.73

1266.5

18.2

81.7

1998-99

1225.75

1474.5

16.8

83.12

1999-2000

1383.6

1760.8

20.76

78.5

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.

Closing Slocks

(MT)

Universal Chemicals

96-97

61.75

97-98

150.55

98-99

43.35

90-2000

(POI)

70.15

(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

landed price of the imported material is below the selling price of

the domestic industry as illustrated in the table below: -

Rs/kg

Year

1997-98

1998-99

1999-2000

Sales Realisation

***

Landed Price of Imports

China

Taiwan

54,720

61,640

60,750

63,190

—

60,600

—

75,560

59,950

(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:-

Petitioners

Universal

Chemicals

COP

Selling Price

P/L

1996-97

***

2791

97-98

***

-8187

98-99

***

-7922

99-2000(POI)

***

-2410

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 Taiwan

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

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;

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.

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SEC. 1]

Country

CHINA

HONGKONG

TAIWAN

Name of the producer/exporter

All producers/exporters

Amount of Duty

(USD/kg)

0.61

0.60

0.62

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

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