MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

(Directorate General of Anti-Dumping and Allied Duties)

NOTIFICATION

New Delhi, the 22nd February, 2001

Preliminary Findings

Subject: Anti-dumping investigation concerning imports of White Cement originating in or exported from

the UAE and Iran—preliminary findings

NO.64/I/2OOO-DGAD.- The Government of India

having regard to the Customs Tariff Act, 1975 as

amended in 1995 and the Customs Tariff (Identification,

Assessment and Collection of Anti Dumping Duty on

Dumped Articles and for Determination of Injury) Rules,

1995, thereof;

PROCEDURE

The

procedure

described

below

has

been

followed:-

(i)

The Designated Authority (hereinafter referred to

as Authority), under the above Rules, received a

written petition from M/s. Grasim Industries Limited

and M/s. JK Synthetics Ltd., on behalf of the

THE GAZETTE OF INDIA: EXTRAORDINARY

| PART I—SEC. 1 ]

domestic industry, alleging dumping of White

Cement (hereinafter referred to as subject goods)

originating in and exported from the UAE and Iran

(hereinafter referred to as subject countries);

(ii)

The Authority notified the Embassies of subject

countries in India about the receipt of dumping

application

made

by the petitioner

before

proceeding

initiate

the investigation in

accordance with sub-rule (5) of Rule 5 supra;

(iii) The Authority issued a Public Notice dated 6^th

December, 2000 published in the Gazette of India,

Extraordinary, initiating anti dumping proceedings

concerning imports of White Cement originating

from UAE and Iran classified under heading

2523.21 of Schedule I of the Customs Tariff Act,

1975;

(iv) The Authority forwarded copy of the said public

notice to the known exporters, importers, industry

associations and to the complainant and gave them

an opportunity to make their views known in

writing.

(v)

According to sub-rule (3) of Rule 6 supra, the

Authority provided a copy of the petition to all the

known exporters and Embassies of subject

countries in India.

(vi) The Authority sent questionnaires, to elicit relevant

information, to the following exporters:

M/s. Saveh

White

Demant

C.(SWCC),

Tehran, Iran.

M/s. Ras Al Khaimah Co., UAE

(vii) The Embassies of UAE and Iran in New Delhi were

also informed about the initiation of investigation

and requested to advise the exporters/producers

from their countries to respond to the questionnaire

within the prescribed time;

(viii) The questionnaire was sent to the following

users/importers of White Cement:

M/s. Rajhans, Rajkot

M/s. Nirav Sales, Morvi

M/s. Safa Establishment P Ltd., Kochi

M/s. Sahajanand Corporation, Morvi

M/s.Himathbhai, Rajkot

M/s. Pravinbhai, Rajkot

M/s. Hasubhai, Rajkot

M/s. Girishbhai, Morbi

Maheshbhai, Rajkot

10.

Bhapabhai, Rajkot

II.

BM Patel, Rajkor

12.

Prabhudas Bhai, Morbi

13.

Harish Bhai, Rajkot

14. Jagdishbhai, Rajkot

15. Shivlalbhai, Rajkot

16.

Bipinbhai, Valsad

17.

Dinesh Chadha, Silvassa

18.

M/s. Lavanya Paints, Allapuza

19. Rajeshbhai, Valsad

20.

M/s. Jaya Paints, Ernakulam

21.

M/s. Shellcam, Kotayyam

22.

M/s. Cochin paints, Cochin

23.

M/s. Umiya Mosiac Tiles, Valsad

24.

Dayabhai, Valsad

25.

M/s. Classic Paints, Ernakulam

26.

Pravin C Patel, Gandhinagar

27. Gummohabbat Sheikh, Ahmedabad

28.

Hemant bhai, Rajkot

^ I K o o i ^

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|PAKFI—SEC 1|

29.

M/s. Western Paints, Ernakulam

30.

M/s. Krishna Industries, Allapuzha

31.

M/s. Mangalam Paints, Cochin

32.

Farooqbhai/Satar bhia, Ahmedabad

33.

M/s. TCL Ltd., Kottayam

34.

M/s. Hero Coatings, Kottayam

35.

Bharat bhai, Valsad

36.

Bharat bhai, Rajkot

37. AR Shah, Ahmedabad

38.

Hasmukh Patel, Dadra

39.

Kantibhai, Gondal

40.

M/s. Super Paints, Ernakulam

41.

M/s. Malabar Paints, Ernakulam

42.

M/s. Continental Coatings, Ernakulam

43.

M/s. Five Star Industries, Ernakulam

44.

M/s. Premier Paints, Trivandrum

45.

M/s. Choice Paints, Ernakulam

46.

Bachubhai, Rajkot

(ix) Among the users/importers, response to the

questionnaire

was

filed

M/s.

Rajhans

Distributors Pvt. Ltd., M/s. Akshayalakshmi Trading

Pvt Ltd., and M/s. Sree Lakshmi Traders, Chennai.

Among the exporters, M/s. Ras Al Khaimah Co.,

For White Cement & Construction Materials, UAE,

have filed response to the questionnaire.

(x)

Additional information regarding injury was sought

from the petitioners, which was also furnished;

(xi) The Authority kept available

non-confidential

version of the evidence presented by various

interested parties in the form of a public file

maintained by the Authority and kept open for

inspection by the interested parties;

(xii) ***** in this notification represents information

furnished by the interested party on confidential

basis and so considered by the Authority under the

Rules;

(xiii) The Authority sought and verified information given

by the domestic industry

and to this end

investigations were carried out at the premises of

the petitioners' at Jodhpur and Kharia in Rajasthan;

(xiv) The Authority also conducted cost investigation

and worked out optimum cost of production and

cost to make and sell subject goods in India on the

basis

Generally

Accepted

Accounting

Principles;

(xv) The investigation covered the period from 1^st

January 1999 to 30^th June 2000.

(xvi) Copies of initiation notice was also sent to FICCI,

CM, ASSOCHAM etc., for wider circulation.

PETITIONER'S VIEWS

The petitioners have made the following major

points in their submissions:

(i)

The petitioners' represent the domestic industry

and white cement being produced by the

petitioners' is a like product to the white cement

being imported from subject countries.

(ii)

Iran and UAE are dumping subject goods in India

and the petitioner has, therefore, approached the

Designated Authority for considering levy of anti

dumping duty.

•

[

—

]

(iv)

Regarding the normal value, petitioners made

efforts to get information on the domestic prices of

subject goods in subject countries. However, they

could not get a reasonable and authentic evidence

of the local prices charged by the manufacturers in

the UAE and Iran or for their exports to other

countries. Therefore they constructed the normal

value in UAE and Iran on the basis of the details of

cost of production for basic raw material and prices

of utilities etc., on the basis of the industry norms;

(v)

The export price has been claimed on the basis of

the data compiled by the Director General

Commercial Intelligence & Statistics, Calcutta.

Price adjustments have been claimed on account

landing

charges,

ocean

freight,

marine

insurance, commission, port handling etc., to arrive

at net export price.

(vi) There has been significant increase in the imports

specifically since January 1999 of subject goods

which has increased approximately at the rate of 8

per cent per quarter;

(vii) The increase of dumped imports is particularly in

the coastal regions of Gujarat, Maharashtra, Kerala

and Tamil Nadu, particularly because of the close

proximity of these places with the sea ports and

some of the major consumers in these States;

(viii) The dumped imports have at this stage affected the

sales of the domestic industry and undercutting

their prices. The Indian manufacturers have been

forced to lower their selling prices in these regions

as compared to other regions. The existence of

significant price under-cutting has caused injury

and threatening further injury to the

Indian

producers which is likely to spread to other regions

as well;

(ix) The dumped imports are causing severe threat to

the domestic industry as there has been a

significant rate of increase in imports of subject

goods in the last two years and there is a very

strong likelihood of these imports increasing

substantially should the anti dumping duties not be

clamped quickly.

(x)

The threat of injury is also manifest in the form of

price under-cutting which is the result of the selling

price of imported product being significantly below

the selling price of domestic industry;

(xi) The exporters in subject countries are holding

substantial surplus capacities.

The demand of

white cement in these countries is far lower than

the capacities created by the manufacturers and

they have to look for off-shore destinations to

increase their sales to ensure reasonable utilisation

of their excess capacities;

(xii) The manufacturers in the subject countries are

holding substantial surpluses in view of creation of

new capacities without much increase in their

domestic market. These inventories are going to

cause substantial injury to the domestic industry in

near future when the exporters from these

countries dump subject goods to clear these

stocks;

IMPORTERS AND EXPORTERS¹ VIEWS

THE GAZETTE OF INDIA: EXTRAORDINARY

[PARIJ—Si-r. IJ

The importers and exporters have expressed

following views in support of their petition:

(i)

We submit that the complaint lodged by M/s.

Grasim Industries Ltd., and M/s. JK Synthetics

Ltd., is wholly untenable in law and fact and the

same is bereft of bonafides. The complaint is

the product of trade rivalry. It is not based on

any genuine grievances;

(ii)

We also dispute that the cement imported by us

are 'like article' to the goods produced by the

complainants. There is a world of difference in

quality between the imported cement and the

white cement produced by the complainants;

(iii)

We do not admit that the normal value of the

subject goods is significantly higher than the net

export price and that the subject goods are

being dumped by the exporters from the subject

countries;

(iv) The price of the imported cement per 50 kgs bag

is more than the domestic cement produced by

the complainants at least by Rs.5 to Rs.10 per

kg. While so, anti dumping duty is not attracted

in the case of the imported product being higher

than value obtained in domestic market. There is

absolutely

case

made

out

the

complainants for initiation of proceedings under

anti dumping laws;

(v)

With regard to the allegation made by the

complainants that the injury is being caused

especially in the coastal areas on account of

price

suppressing

resulting

from

dumped

imports

landing

in these areas, there is

absolutely no warrant for such an allegation.

There has been no price undercutting and

erosion in the profitability for the domestic

industry in the coastal areas. The Statement

given above belies the charge of under cutting;

(vi) We submit that the domestic industry has not

suffered any injury consequent to the import of

foreign white cement.

Not even plausible

explanation offered justifying the allegation of

material injury;

(vii) The very initiation of anti dumping investigation

is based upon the one sided version of the

complainants, who appear to have given

distorted facts and figures in order to drive us

from the trade;

(viii) The petitioners have enjoyed a monopoly

situation in the market, until our product was

made available with competence in the market.

Our presence in the market, has been only to

the advantage of the end consumer, to whom

the white cement was made available in the

market without compromise to quality and value

for money;

(ix)

We request the Designated Authority to refer to

order Nos.37-40/2000-AD

of the Hon'ble

CEGAT, (2000 (122) ELT 412 (Tribunal) ,

wherein

the Hon'ble CEGAT have given

certain

directions

methodology

for

calculation of normal value and dumping

margins;

Examination and Findings by Authority

The submission made by the exporters, importers,

domestic industry and other interested parties have been

examined and considered while arriving at these findings

and wherever appropriate have been dealt hereinafter.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I—SEC. 1]

The Authority confirms, the absence of any direct

response from the exporters from Iran in the form and

manner prescribed and having made the findings with

regard to exports from Iran on the basis of the fact

available to it as per rule 6(8) supra.

The cases of new exporters or those stated to be

willing to give price undertaking shall be considered, on

request, by the Authority in accordance with the Rules

supra.

PRODUCT UNDER CONSIDERATION AND LIKE

ARTICLE

The product under consideration is "white portland

cement" which is normally referred to as "white cement".

It is a construction material and used for non structural

purposes such as

flooring of tiles, cement based

exteriors, paints and cement varnish etc. This falls

within Chapter 25 of the Custom Tariff Act under the

sub-heading

2523.21. The Custom classification is

indicative only and not binding on the scope of

investigation.

The goods produced by the domestic industry are

like articles to the goods being exported from UAE and

Iran to India. Though the exporters from UAE and the

importers in India have claimed that the white cement

being manufactured and sold by them is of superior

quality but there is no argument that it is not substituting

the product being manufactured by the domestic

industry. Therefore, for the purpose of investigation, the

goods produced by the petitioners are being treated as

'like articles' of white cement imported from the subject

countries within the meaning of the Rules.

DOMESTIC INDUSTRY

10. There are three producers of the subject goods in

India namely, M/s. Grasim Industries Limited, M/s. JK

Synthetics Limited and M/s. T C l Limited, Kerala. The

petition has been filed by M/s. Grasim Industries Limited

and M/s. JK Synthetics Ltd., on behalf of the domestic

industry. These two producers account for more than 90

per cent of the total domestic production and thus have

the standing to file the petition. None of the respondents

have challenged this claim. Therefore, as far as the

issue of standing of the petitioners to file the petition is

concerned, there is no dispute and the Authority has

determined that petitioners represent the domestic

industry for the purpose of present investigation.

Dumping & examination of claims made on

Normal Value & Export Prices

Normal Value

11.

Under Section 9A(1)©, 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 saISs in the

domestic market of the exporting country or

territory, such sales do not permit a proper

comparison, the normal value shall be either-

£l5G,Z\3.oc*—5

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SBC. 1]

(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

(b) 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);

12. The Authority sent questionnaires to all the known

exporters for the purpose of determination of normal

value in accordance with Section 9A(1)©.

However,

none of the exporters from Iran responded to the

Authority and have not furnished any information. The

Authority, therefore, holds that none of the exporters

from Iran have cooperated with the Authority as

envisaged under the Rules. The domestic industry has

furnished information with regard to the normal value in

Iran based on the constructed cost of production. In

view of non cooperation from the exporters from Iran, the

Authority has determined normal value in Iran on the

basis of the constructed cost of production.

13. M/s. Ras Al Khaimah Co. for White Cement and

Construction Materials, UAE, has furnished information

regarding the domestic sales price and the export price

in their response submitted to the Designated Authority.

However, information regarding the cost of production,

profit on the domestic sale and the exports to India and

to countries other than India, sale price structure for

domestic sales, for exports to India and for exports to

countries other than India, have not been provided in the

prescribed format. No documentary evidence regarding

ocean freight, invoices of domestic sales etc., have been

furnished.

Also nc/it confidential summary of the

confidential

information submitted have not been

furnished. Because of the non avaiiakilitv of information,

as, mentioned above, it is difficult to determine as to

whether the domestic sales are to the ordinary course of

trade and also as to what kind of adjustment such as

commission, domestic freight, insurance, handling

charges etc., are admissible. However, for the purpose

of preliminary findings the Designated Authority has

decided to work out the normal value and dumping

margin on the basis of the information provided for

domestic sales by the exporter. The Authority reserves

the right to ignore rhe information furnished by the

exporter in case complete information is not furnished

along with the non confidential summary within 40 days

of issue of these findings.

Export price

14.

M/s. Ras Al Khaimah Co., UAE has furnished

information

regarding

their

exports

India

and

elsewhere during the period of investigation. The FoB

export price to India works out to US$ *** per MT.

information has been furnished regarding adjustment

that can be claimed in export price as per the Rules. In

the case of Iran, the DGCIS data regarding the volume

and price of export has been used. After making the

adjustments on the basis of information furnished by the

domestic industry the net export price has been worked

out as US$*** per MT for the period of investigation.

V¹ V , i

\loa\-(.l

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC 1]

Dumping margin

15. The principles governing the determination of

normal value, export price and the dumping margin as

laid down in the Custom Tariff Act and the Anti Dumping

Rules are elaborated in Annexure I to the Rules, For

the purpose of the fair comparison between the normal

value and export price, the Authority has made

calculations and comparisons at the same level of trade.

16. The normal value for Iran based on the constructed

cost of production works out to US$ *** per MT. The

net export price worked out on the basis of similar

parameters and allowing similar adjustments works out

to US$ *** per MT. The dumping margin for exports of

the subject goods from Iran comes to/rr % Of the export

price.

17. In the case of M/s. Ras Al Khaimah Co., UAE, the

domestic sales have been made during the period of

investigation @ *** UAE Dirhams per MT on the average

(equal to US$ *** per MT) as per the submissions made

by them which is being taken as the normal value. The

FoB export price to India, as stated above, has been

worked out as US$ *** per MT. No adjustments have

been claimed both in the domestic sales price as well as

the FoB export price to India making them comparable at

similar level of trade. The dumping margin on the basis

of the information submitted by the exporter comes to

41 % of the export price for M/s. Ras Al Khaimah Co., UAE

and the Authority intends to use the same margin for all

the exporters from UAE because as per the information

available there is only one manufacturer of white cement

in UAE.

Injury

18.

Rule 11 of Anti Dumping Rules reads as follows:

"Determination of Injury:

(1)

In the case of imports from

specified countries, the designated

authority shall record a further

finding that import of such article

into India causes or threatens

material injury to any established

industry or materially retards the

establishment of any industry in

India;

(2)

The designated authority shall

determine the injury to domestic

industry,

threat

injury

domestic

industry,

material

retardation to establishment of

domestic industry and a causal link

between dumped imports and

injury, taking into account all

relevant

facts,

including

the

volume of dumped imports, their

effect on price in the domestic

market for like articles and the

consequent effect of such imports

on domestic producers of such

articles and in accordance with the

principles set out in Annexure II to

these rules."

Cumulative Assessment of Injury

19. Annexure II (iii) under Rule 11 supra further

provides that "in cases where imports of a product from

THE GAZETTE OF INDIA . EXTRAORDINARY

[PART I—Snr. 1)

more than one country are being simultaneously

subjected to Anti dumping investigation, the Designated

Authority will cumulatively assess the effect of such

imports, only when it determines that 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 of the imports of the

like article or where the export of the individual countries

less than three percent, the imports cumulatively

accounts for more than seven percent of the imports of

like article, and 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 Authority notes that the margin of dumping and

quantum of imports from subject countries are more than

the limits prescribed above. Cumulative assessment of

the effects of imports are appropriate since the export

prices from the subject countries were directly competing

with the prices offered by the domestic industry in the

Indian market.

Threat of Injury

20.

Under Rule 11 supra, Annexure II, when a finding

of injury is arrived at, such finding shall involve

determination of the 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

". Further to above, regarding threat of injury,

para (vii) of Annexure II of Rules supra, reads as under:-

" (vii)A determination of a threat of material injury

shall be based on facts and not merely on

allegation, conjecture or remote possibility.

The change in circumstances which would

create a situation in which the dumping would

cause injury must be clearly foreseen and

imminent.

In making a determination

regarding the existence of a threat of material

injury, the designated authority shall consider,

inter alia, such factors as:

(a)

a significant rate of increase of dumped

imports into India indicating the likelihood of

substantially increased importation;

(b)

sufficient freely disposable, or an

imminent, substantial increase in, capacity of

the exporter indicating the likelihood of

substantially increased dumped exports to

Indian market, taking into account the

availability of other export markets to absorb

any additional exports;

(c)

whether imports are entering at prices

that will have a significant depressing or

suppressing effect on domestic prices, and

would likely increase demand for further

imports; and

(d)

inventories

the

article

being

investigated."

21.

In considering the effect of the dumped imports on

prices, it is considered necessary to examine whether

there has been a significant price undercutting by the

dumped imports as compared with the price of the like

product in India, or whether the effect of such imports is

'•'-•«'3 4^/^;

THE GAZETTE OF INDIA . EXTRAORDINARY

____

[PART I—SEC. 1|

having a bearing on the state of industry as production,

sales, stock, profitability, net sales realisation etc.

22. All the economic parameters affecting the domestic

industry mentioned above, such as production, capacity

utilisation, sales volume etc., have been examined. The

capacity utilisation in case of M/s. JK White Cement

during

the

period

investigation

has

been

approximately ***% and that in case of M/s. Grasim

Industries was***% during the period of investigation.

However, the most clear effect of dumped imports has

been on the prices specially in the coastal areas such as

Gujarat, Maharashtra, Kerala and Tamil Nadu which has

caused injury to domestic industry.

There has been a

tremendous erosion of the sales in the coastal areas for

the domestic industry and the domestic industry has

further stated that they are finding it difficult to convince

the consumers to continue to buy the domestic product

because of the enormous price difference. Even though

there may not be an immediate adverse effect on the

production and capacity utilisation because of the

expanding domestic market, the dumped imports are

causing threat of further injury to the domestic industry in

coastal areas which is spreading to interior areas as

well.

23. Significant rate of increase of Import - Over the

years the imports of white cement from the subject

countries

have

increased

significantly

from

approximately 1700 MTS in 1996-97 to approximately

9400 MTS during 1999-2000. This rate of increase has

intensified during the period of investigation. The

quarter wise volume of import has increased as follows:-

Imports-increase

trend

1996-97

1997-98

1998-99

April-Sept'99

Oct-Dec'99

Jan-Mar'00

April-June'OO

July-Sept'00

Quarterly

proportionate

import volumes

430

986

1295

1475

2376

4099

3156

3869

Rate of

incease

over

1996-97

2.29

3.01

3.43

5.52

9.53

7.34

8.99

It has been argued by the importers in India and

exporters from UAEthat the volume of imports from UAE

accounts for a very small per cent of the domestic

production in India and therefore cannot cause injury.

Here it has been stated by the domestic industry that the

imports are concentrated at present in the coastal areas

of Gujarat, Maharashtra, Kerala and Tamil Nadu . If only

the sales made in these areas are taken into account,

imports will work out to be a very significant proportion

sufficient enough to adversely affect the sales of the

domestic industry.

24. Significant Price Under cutting - The landed

price of the imports is significantly below the selling price

of the domestic industry in the coastal areas where the

transportation cost for the domestic industry is very high.

specific

markets,

such

Salem,

Chennai,

Trivandrum, Cochin, Rajkot, Bhavnagar, Morvi etc.,

there is a significant price under-cutting by imports from

• E

[

—

1 1

UAE and Iran which varies from 14% to 40% of the

landed price of the domestic industry taking into account

non injurious price and transportation cost.

25. Surplus disposable Capacity - As per the

submissions made by the importers and exporters, there

was unutilized capacity in UAE of approximately ******

MTs in 1999-2000. As per the information submitted by

the domestic industry, there is a total capacity of 1.16

million tones available in Iran and additional capacity of

1, 65,000 MT is being created which will become

operational in early 2003. It is further stated that the

domestic demand is not sufficient to ensure reasonable

capacity utilisation in subject countries and hence the

manufacturers have to look for markets abroad. As no

response has been received from exporters from Iran,

the claim of the domestic industry of their being large

spare capacities could not be verified.

26.

Inventories -

The domestic industry has alleged

that producers in Iran and UAE are holding substantial

surplus stocks in view of doubling of capacities without

much increase in demand.

In the case of Iran, this

allegation could not be verified in the absence of non

cooperation from the exporters.

However, as per the

information given by the exporter from UAE there is

increase in stock during the investigation period from ***

MT to **** MT between 1^st January 1999 to 31^st June

2000 which is not very significant.

27. Volume and Price Effect - It is the argument of

importers and exporter from UAE

that a very small

quantity of import as compared to the total domestic

production is unlikely to have any effect on the domestic

industry and cause injury. However, it is seen that even

a very small quantity of import at low prices forces the

domestic industry to reduce the prices as the buyers

start demanding the benchmark set by the landed value

of import to be offered to them by the domestic industry

as well causing severe price undercutting. This factor

along with the factors mentioned in the paragraphs

above, justify the claim of the domestic industry of

dumped imports causing severe threat of injury to them.

It is their contention that if the unfair dumping practice of

exporters continues and if not timely checked at this

stage, the injury would spread over to other parts of the

country other than the coastal areas and would have a

long term adverse impact on the Indian white cement

industry. On the basis of the evidence available before

it, the Authority therefore concludes that there is a

serious threat of injury being caused to the domestic

industry on account of dumped imports of subject goods

from subject countries.

Causal Link

28. In determining whether injury to the domestic

industry was caused by the dumped import, the Authority

has taken into account the factor that it is the increased

dumped import at dumped prices in localized markets

which has forced the domestic industry to reduce its

prices to the levels not sufficient to recover the non

injurious price and the transportation cost to these areas.

Therefore, the causal link between the dumped imports

of subject goods from subject countries and threat of

injury being faced by the domestic industry is clear. The

Authority therefore concludes that there is a causal link

between the dumping of subject goods from the subject

countries and threat of injury being caused to the

domestic industry during the period of investigation.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC. 11

INDIAN INDUSTRY'S INTEREST

29. 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.

30. The Authority recognises that the imposition of anti

dumping duties might affect the price levels of the

products manufactured using White Cement and

consequently might have some influence on relative

competitiveness of these products.

However, fair

competition on the Indian market will not be reduced by

the anti dumping measures. 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 subject

goods. The Authority notes that the imposition of anti

dumping measures would not restrict imports from UAE

and Iran in any way, and therefore, would not affect the

availability of the product to the consumers. The

consumers could still maintain two or even more sources

of supply.

CONCLUSIONS

31. The Authority has, after considering the foregoing,

come to the conclusion that:

(i)

White Cement has been exported to India

from UAE and Iran below its normal value;

(ii)

the Indian industry has suffered injury and is

being threatened with further injury;

32. The Authority considers it necessary to impose an

anti

dumping

duty

provisionally,

pending

final

determination, on all imports of White Cement from UAE

and Iran in order to remove the injury to the domestic

industry.

The margin of dumping for known exporter

determined by the Authority are indicated in the

paragraphs above.

33. Accordingly,

the

Authority

recommends

that

provisional anti dumping duties as set out below be

imposed from the date of notification to be issued in this

regard by the Central Government on all imports of white

cement falling under customs code 2523.21 originating

from UAE and Iran pending final determination. The

anti dumping shall be as follows:-

Country -

UAE

(all

including

M/s.

Khaimah Co.)

exporters

Ras

2.Iran (all exporters)

Anti dumping duty (US$

per MT)

FURTHER PROCEDURE

The

following

procedure

would

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

THE GAZETTE OF INDIA: EXTRAORDINARY

[PAKTI—SKC. 1J

(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 from the date of despatch of the letter.

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

the

interested

parties for making

oral

submissions which have to be rendered

thereafter in writing;

(d)

The

Authority

would

conduct

further

verification to the extent deemed necessary;

(e)

The Authority would disclose essential facts

before announcing final findings.

L.V. SAPTHARISHI, Designated Authority

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and Published by the Controller of Publications, Delhi-110054.