MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

DIRECTORATE GENERAL OF ANTI DUMPING AND ALLIED DUTIES

INITIATION NOTIFICATION

New Delhi, the 12th January, 2001

Subject:

Initiation of anti-dumping investigation concerning import of lead acid batteries orginating in

or exported from Japan, Korea, China and Bangladesh

No. 67/1/2000-DGAD.—. Exide Industries Limited and M/s. Amara Raja Batteries

Limited have filed a petition for initiation of anti dumping investigation concerning the

import of lead acid batteries from Japan, Republic of Korea, People's Republic of China

and Bangladesh (hereinafter referred to as subject countries) in accordance with Rule 5(1)

of the Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty

on Dumped Articles and for Determination of Injury) Rules 1995.

Domestic Industry:

The petition has been filed by M/s. Exide Industries

Limited and M/s. Amara Raja Batteries Limited on behalf of the domestic industry.. The

petitioners have averred that there are five more producers of the product in the organized

sector in India who incidentally are also importing lead acid batteries from subject

countries Also, there are a number of small producers in the un-organised sector.

Though M/s. Amara Raja Batteries Ltd., have made import of certain models of

lead acid batteries

from the subject countries which they themselves are not

manufacturing, the volume and value of import is quite insignificant as compared with

the annual production and sales of the subject goods by them. Therefore, the Authority

has decided to ignore the imports made by M/s., Amara Raja Batteries Ltd., and include

them in the definition of domestic industry for the purpose of filing the petition. On the

basis of the evidence available, the petitioners account for more than fifty percent of the

production of domestic industry and have the standing to file the petition on behalf of

domestic industry.

Product under consideration:

The product under consideration is "lead

acid batteries". This falls within Chapter 85 of the Custom Tariff Act under the sub-

heading 8507. The Custom classification is indicative only and not binding on the scope

of investigation. It has been stated by the domestic industry that lead acid batteries have

also been cleared by the Custom Authorities under sub-heading 8504 and 8506 as well.

Batteries are accumulator of current/power which is discharged over a period of time.

THE GAZETTE OF INDIA : EXTRAORDINARY

PART I—SEC. 1J

They are used in vehicles and also for various industrial uses, such as for back up power

for UPS applications, control rooms, power stations, telecommunications etc.

It has been stated by the domestic industry that the statistics in the case of lead

acid batteries are compiled in terms of number of units. But denoting the volume in

terms of number of units may be misleading because different models have different

power capacity and value. Apart from denoting the product in terms of units and value, it

will be useful to have the information on the product in terms of lead content as there is a

direct correlation between power and lead content of the battery which also gets reflected

in terms of value or price. The direct correlation between the lead content in the battery

and its associated costs and prices is also quite significant.

It will, therefore, be

meaningful to assess the volume, value as well as lead content of the product for the

purpose of calculation and comparison of various parameters.

Countries involved: The petitioners have provided evidence of dumping of the

product under consideration from subject countries and have requested for initiation of

investigation against these countries.

Like Article: The petitioners have claimed that the goods produced by them are

'like article'

to the goods originating in or exported from the subject countries,

Therefore, for the purpose of investigation, the goods produced by the petitioners are

being treated as 'like articles' of lead acid batteries (hereinafter referred to as subject

goods) imported from the subject countries within the meaning of the Rules.

Normal Value.

The petitioners have claimed normal value based on the

constructed cost of production as well as on the basis of evidence regarding domestic

prices in some of the subject countries of the subject goods, Sufficient prima facie

evidence has been presented to the Designated Authority with regard to the normal value

of subject goods in subject countries.

Export Price: The export price has been claimed on the basis of the data obtained

from Director General Commercial Intelligence & Statistics, Calcutta and compiled from

secondary sources. Price adjustments have been claimed on account of landing charges,

ocean freight, marine insurance, commission, port handling etc., to arrive at net export

price.

There is sufficient evidence of export price and the adjustments claimed for the

subject goods from subject countries.

Dumping Margin:

There is sufficient prima facie evidence that the normal

value of the subject goods in the subject countries is significantly higher than the net

export price indicating prima facie that the subject goods are being dumped by the

exporters from the subject countries,

Injury and Causal Link:

The petitioner has furnished evidence regarding the

injury having taken place as a result of the allegedly dumped imports in the form of fall

in their market share, price undercutting and lost contracts for the domestic industry. In

addition to the material injury already inflicted on the domestic industry, the allegedly

dumped imports are also threatening to cause more damage which will intensify the

material injury already being suffered by them.

Initiation of Anti Dumping Investigation; The Designated Authority, in view of

the foregoing paragraphs, initiates anti dumping investigations into the existence, degree

and effect of alleged dumping of the subject goods originating in or exported from the

subject countries.

11.

The period of investigation for the purpose of present investigations is 1^st January

2000 to 30^lh September 2000 (9 months).

12.

Submission of Information: The exporters and importers known to be

concerned and domestic, industry are being informed separately to enable them to file all

information relevant in the form and manner prescribed. Any other party interested to

participate in the present investigation may write to:

The Designated Authority

(Directorate General of Anti-Dumping & Allied Duties)

Government of India

Ministry of Commerce & Industry

Udyog Bhavan

New Delhi-110011

Time Limit:

All information relating to this investigation should be sent in

writing so as to reach the Authority at the above address not later than 40 days from the

date of publication of this notification.

If no information is received within the

prescribed time limit or the information received is incomplete, the Authority may record

their findings on the basis of the facts available on record in accordance with the Rules

supra

14.

Inspection of Public File: In terms of Rule 6 (7), any interested party may

inspect the public file containing non-confidential version of the evidence submitted by

other interested parties.

15.

In case where an interested party refuses access to, or otherwise does not provide

necessary information

within a reasonable period, or significantly impedes the

investigation, the Authority may record its findings on the basis of the facts available to it

and make such recommendations to the Central Government as deemed fit.

L.V. SAPTHARISHI, Designated Authority

Printed by the Manager, Uovl.ot India Press, Ring Road, Mayapuri, New Delhi-110064

nnd Published by the Controller of Publications, Dolhi-110054. -2001