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

REGD. NO. D. L.-33004/99 The Gazette of India

EXTRAORDINARY

PARTI—Section 1

PUBLISHED BY AUTHORITY

No. 52] NEW DELHI, FRIDAY, FEBRUARY 23, 2001/PHALGUNA 4,1922

5.12 GI.2001

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MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

(DIRECTORATE GENERAL OF ANTI-DUMPING & ALLIED DUTIES)

NOTIFICATION

New Delhi, the 22nd February, 2001

PRELIMINARY FINDINGS

Sub. :—Anti-Dumping investigation concerning imports of Choline Chloride from

European Union and PR China,

No. 59/1/2000-DGAD.— 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:

A. PROCEDURE

1. The procedure described below has been followed with regard to the investigation:

i) The Designated Authority (hereinafter also referred to as Authority), under the above Rules, received a written application from the M/s Vam Organic Chemicals Ltd. (hereinafter also referred to QS petitioner) having registered office at Plot No. 1- A, Sector-16A, Institutional Area, Noida-201 301 on behalf of domestic industry, alleging dumping of Choline Chloride (hereinafter also referred to as subject goods) originating in or exported from European Union and People's Republic of China and USA.

ii) Preliminary scrutiny of the application filed by the petitioner revealed certain deficiencies, which were subsequently rectified by the petitioner. The petition was, therefore, considered as properly documented.

iii) The Authority on the basis of sufficient prima-facie evidence submitted by the petitioner decided to initiate the investigation25 against imports of subject goods from European Union and People's Republic of China (hereinafter referred to as subject countries) only. As the petitioner could not furnish prima-facie evidence on dumping of the subject goods from USA, the Authority did not initiate any proceedings against imports of subject goods from USA. The Authority notified the Delegation to the European Commission and the Embassy of the People's Republic of China in New Delhi (hereinafter also called Embassies of the subject countries) about the receipt of dumping allegation before proceeding to initiate the investigation \r\ accordance with sub-Rule 5(5) of the Rule.

iv) The Authority issued a public notice dated 6.12.2000 published in the Gazette of India, Extraordinary, initiating Anti-Dumping investigations concerning imports of the subject goods classified under custom Code 2309.9001 and 2923.1001 of Schedule I of the Customs Tariff Act, 1975 originating in or exported from European Union and People's Republic of China.

v) The Authority forwarded a copy of the public notice to all the known exporters (whose details were made available by petitioner) and industry associations and gave them an opportunity to make their views known in writing in accordance with the Rule 6(2):

vi) The Authority forwarded a copy of the public notice to all the known importers (whose details were made available by petitioner) of subject goods in India and advised them to make their views known in writing within forty days from the date of issue of the letter.

vii) Request was made to the Central Board of Excise and Customs (CBEC) to arrange details of imports of subject goods made in India during the past three years, including the period of investigation.

VIM) The Authority provided a copy of the petition to the known exporters and the Embassies of the subject countries in accordance with Rules 6(3) supra. A copy of the petition was also provided to other interested parties, wherever requested.

ix) The Authority sent a questionnaire to elicit relevant information to the following known exporters/producers in the subject country \n accordance with the Rule 6(4):

ri32 Ci 1/2001 -426 THE GAZET1 R OF fNDIA EXTRAORDINARY [PAKJ I- S ir 1| 1. M/$ Akzo Nobel Chemicals S.p.A, Italy

2. M/s Yixing Akzo Nobel Sanyuan Chemicals Co.Ltd., Dushan, China x) The Embassies of the subject countries in New Delhi was 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, petition and questionnaire sent to the exporters was also sent to the Embassy of the subject countries alongwith a list of known exporters/producers.

xi) A questionnaire was sent to the following known importers/user associations of the subject goods for necessary information in accordance with Rule 6(4):

1. M/s Nav Maharasthra Chakan Oil Mills Ltd., Mumbai 2. M/s Sonam International, Mumbai

3. ?\/s Poultry Federation of India

xii) Response/ information to the questionnaire/notification was filed by the following exporters/producers of the subject countries:

1. M/s Akzo Nobel Chemicals S.p.A., Italy

2. M/s Yixing Akzo Nobel Sanyuan Chemicals Co.Ltd., Dushan, China mentioned that they never exported any kind of subject goods to India.

xiii) Response/information to the questionnaire/notification was filed by the following Importers/user Associations:

1. M/s K Sevantilal & Co., Mumbai

2. The compound Livestock Feed Manufacturers Association of India, Mumbai

3. th/s Poshak Feeds P Ltd., Hyderabad

4. M/s Nav Maharasthra Chakan Oil Mills Ltd., Pune

5. M/s Chokhani Associates, Mumbai

6. M/s Komarla Feeds A Foods P Ltd., Bangalore

7. M/s Poultry Federation of India, New Delhi27 xiv) Additional information regarding various injury parameters, including cost of production was also sought from the petitioner, which was also furnished,

xv) The Authority verified the information provided by the petitioner to the extent considered necessary,

xvi) 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;

xvii) Optimum cost of production and cost to make and sell the subject goods in India was worked out on the basis of Generally Accepted Accounting Principles (GAAP) and by analysing the cost information furnished by the petitioner.

xviii)****in this notification represents information furnished by an interested party on confidential basis and so considered by the Authority under the Rules,

xix) Investigation was carried out for the period starting from 1.4.99 to 30.9.2000 i.e. the period of investigation (POI).

xx) Extension to file information upto 31.1.2001 was also granted by the Authority on request of certain interested parties.

B . VIEWS OF EXPORTERS, IMPORTERS AND OTHER

INTERESTED PARTIES

1. PETITIONER'S VIEWS

a) ON PRODUCT UNDER CONSIDERATION

1. Choline chloride a kind of animal compound feed, is a quaternary ammonium compound, which is colourless, viscid and strongly alkaline. It is formed by reaction of Trimethyl Amine and Ethylene Oxide with Hydrochloric Acid. The purified Choline Chloride is deposited on a carrier and then dried. The carrier normally used is Silica, corn Cob powder or similar absorbent powder derived from agro-waste materials. The carrier is used merely to carry the product i.e. Choline chloride. The commercial nomenclature of the product28 THE GAZETTE OFINDIA: EXTRAORDINARY JP.^RI 1—SEC. 1] depends upon the carrier used and the concentration of Choline. In case the carrier used is corn cob, the product is commercially called Choline Chloride Corn Cob base. If the earner used $ vegetable, it is known as Choline Chloride Vegetable base. The concentration of Choline Chloride is also usually mentioned alongwith the carrier used. In case the concentration is 50% Choline Chloride, it is called Choline Chloride 50% Corn Cob (or vegetable) base. The present petition is for a!l types, forms and grades of Choline Chloride, regardless of concentration and carrier used. The physical and chemical characteristics of Choline Chloride is described in terms of tapped density, bulk density, particle Retention, Choline Chloride content, Moisture content, Trimethyl Amine content. The product is manufactured in three steps batch process which involves neutralization of Hydrochloric Acid with Trimethyl Amine to form Trimethyl Amine Hydrochloride.

Ethylene Oxide is then added to Trimethyl Amine Hydrochloride to form Choline Chloride solution. The solutionis then concentrated under vacuum to a pre determined percentage solution. Dry Choline Chloride is produced by blending in a mixer batch wise Liquid Choline Chloride with solid carriers. This blend is then fed to a Rotary bryer where moisture is removed. This is then fed in Rotary Cooler to bring down the temperature of the mass to Atmospheric Temperature. Finally the dry choline chloride is Milled and filled in bags. The various grades of Choline Chloride are Choline Chloride on Corn Cob Carrier, Choline Chloride on Silica Carrier and Aqueous Choline Chloride.

The cost of production and the selling price of the product depends upon the concentration of Choline Chloride. The product is generally referred to as B Complex Vitamin which is basically a poultry feed supplement. The product \s classified under Chapter 23 (2309.9001) of the Customs Tariff Act as "compound animal feed" while the Liquid Choline Chloride fall under Chapter 29 (2923.1001). The product is importable under Open General Licence (OGL) and attracts a basic customs duty of 35% with 10% surcharge.

b) ON DOMESTIC INDUSTRY

1. M/s Vam Organics is the major producer of Choline Chloride in India amounting for almost 70% of the Indian production.

Except M/s Rallchem, the other major producers arz in the un- organised sector viz. small scale producers which account for less than 25% of the total Indian production.

b) ON LIKE ARTICLE

1. There is no viable substitute for Choline Chloride. There is also no known difference in Choline Chloride produced by the petitioner and the Choline Chloride exported from the subject countries which car\ have an impact on prices. The Choline Chloride produced by Indian industry and that imported from subject countries are comparable in terms of characteristics such as physical and chemical characteristics, functions and uses, product classifications, pricing, distribution and marketing and tariff classification of the goods. The domestic and the imported goods are technically and commercially substitutable and can be used interchangeably. The domestic producer is not aware of the technologies adopted by the exporters/manufacturers in the subject countries. However, the technology adopted by the petitioner is comparable to adopted by any other producer in the world.

c) ON DUMPING

1. Normal value in European Union is the prices, at which the consumers of Choline Chloride are purchasing Choline Chloride in the European Union in the ordinary course of trade. A copy of the letter (from reliable secondary sources) evidencing the domestic selling price of Choline Chloride being sold ir\ European Union has been provided on confidential basis.

Though this price may not permit recovery of full cost of production including selling, general and administrative expenses, it may be considered as a prima-facie evidence of30 THE GAZETTE OF INDIA. EXTRAORDINARY |PM normal value for the purpose of the present petition. The normal value in China may be adopted on the basis of the detailed methodology of the constructed normal value as enclosed on confidential basis. The CIF prices of imports from the two countries may be adjusted for landing charges, ocean freight, marine insurance, commission, inland transport, port handling and port expenses to arrive at the ex-factory export price. Based or\ the above, the dumping margin in respect of exports from PR China comes to 120.47% and that from European Union comes to 64.92%.

e) ON INJURY AND CAUSAL LINK

1. The imports from each of the subject countries are deminimus.

2. The imports were only from the subject countries in April, 1999 to June, 2000.

3. The imports from subject countries has increased in absolute terms viz. from China they have increased from 44.44 to 288.89AAT and from European Union they have increased from 4.05 to 1759.63MT.

4. The export price from the subject country has continuously declined over the years by more than 20% in the four years.

5. The petitioner has not been able to realize optimum price for its product.

6. The capacity utilization of the product has remained sub- optimal.

7. The petitioner has been able to increase its sales by keeping the prices un-remunerative, and that the petitioner has also not been able to cater to the fully market demand and have its plant utilization to the fullest.

8. The imports have forced the domestic industry to reduce its price in spite of increase in the cost of production causing se\/ere price under-cutting in the Indian market which has resulted in significant financial losses.

9. Since imports are coming from countries other than subject at significantly higher prices, they are not causing injury to the domestic industry. The domestic industry has sufficient31 capacity to meet the entire demand and since that the demand of the Choline Chloride has been increasing, the evidence that the injury has been on account of the dumped imports.

2. EXPORTERS VIEWS

1. AA/s Akzo Nobel Chemicals 5.p.A., Italy has made the following submissions:-

a) The goods sold in the domestic market do not differ from the product exported in the Indian market.

Physical characteristics are the same and the product specifications for the exported goods and as used for export to India are also same.

b) Difference in the ordinary course of trade for different regions in the world differ. Details car\ be provided by the Governments of the countries involved.

c) The market price of Choline Chloride in the world during August, 99 - November, 99 has been considerably higher than in India.

d) The exports from M/s Akzo Nobel Chemicals S.p.A., Italy are more than deminimus but have not increased over the years and its share has declined.

e) The selling price in the Indian market are set by the local producer of Choline Chloride in India. In order to maintain a position in the Indian market, we were forced to lower our prices.

f) The Evidences and data on domestic selling prices and exports to India are provided on the confidential basis.

2. It is mentioned that M/s Yixing Akzo Nobel Sanyuan Chemicals Co. Ltd., China have never exported any kind of subject goods to India.

No response was received from other exporters.

3. IMPORTERS ANb USER ASSOCIATIONS VIEWS a) ON DUMPING

1. During early 90s Choline Chloride, an essential ingredient for inclusion in the compound animal feed for enhancing its quality and efficiency was available @Rs. 70 to 80/kg. The domestic demand was catered by either importers or few small scale indigenously manufacturers or both.

2. Since 1997, the price of indigenously manufactured Choline Chloride has come down from Rs.70 to around Rs. 45 /kg and also due to consequent reduction in its price in international markets.

3. The Cost of production of Choline Chloride in India is more than that in overseas countries. In case of imposition of anti- dumping duty on this product by our country even the imports into our country will become more expensive and would be detrimental to the industry using this product as a raw material.

4. The product manufactured by N\/s Vam Organics is being exported outside India at the @ 600 to 700 US$ per MT CIF which implies that their cost of production is less than US$600/MT.

5. The product sold by l^/s Vam Organics in the country is costlier than the international prices by at least Rs. 10/kg.

6. N\/s Vam Organics has not agreed to supply the product Choline Chloride at international prices to Indian customers and, therefore, imports have to be resorted to.

7. The import of Choline Chloride has kept the local prices in check and competitive and at par with the imported prices.

8. Also since there is no Central Excise duty on this product and that there is o sales tax either in Gujarat where N\/s Vam Organics is located, the domestic suppliers must supply t h^ product to the consumers at international prices.

b) ON INJURY AND CAUSAL LINK

1. The present import duty on Choline Chloride is around 45% and consequently its landed prices works out to slightly less than the 3.1 present price of indigenous Choline Chloride which ranges between Rs. 42 to Rs. 48/kg.

c) EFFECT ON USER INDUSTRY

1. If an anti-dumping duty is levied, AA/s Vam Organics will sell their product to Indian customers at much higher price which will increase the cost of animal feed and thereby animal products for human consumption. '

C EXAMINATION BY AUTHORITY

The foregoing submissions made by the exporters, the importers, the petitioner and other interested parties have been examined, considered and dealt with at appropriate places in these findings to the extent these are relevant as per Rules and have a bearing upon the case.

1. PRODUCT UNDER CONSIDERATION

The product under consideration in the present investigation is Choline Chloride, a kind of animal compound feed, is a quaternary ammonium compound, which is colourless, viscid and strongly alkaline.

The product is generally referred to as B Complex Vitamin which is basically a poultry feed supplement. The product is classified under Chapter 23 (2309.9001) of the Customs Tariff Act and also the Liquid Choline Chloride under Chapter 29 (2923.1001). The manufacturing process is as under :--

The product is manufactured in three steps batch process which involves neutralization of Hydrochloric Acid with Trimethyl Amine to form Trimethyl Amine Hydrochloride. Ethylene Oxide is then added to Trimethyl Amine Hydrochloride to form Choline Chloride solution. The solution is then concentrated under vacuum to a pre determined percentage solution. Dry Choline Chloride is produced by blending in a mixer batch wise Liquid Choline Chloride with solid carriers. This blend is then fed to a Rotary Dryer where moisture is removed. This is then • ' • ,i :"n^ 'THE GAZETTE OF INDIA EXT RAORD1NARY [PARII—Si*-, 1| importers/users who have responded have not raised cry issues on this.

The petitioner has submitted that the domestic goods and the.

imported goods from the subject countries be treated as Like Article.

The Authority, therefore, for the purpose of the Preliminary Findings holds that the subject goods imported from the subject countries and that manufactured by the domestic industry are Like Article within the meaning of the Rule 2(d).

3. DOMESTIC INDUSTRY

The petition has been filed by M/s Vam Organic Chemicals Ltd. having registered office at Plot No. 1-A# Sector-16A, Institutional Area, Noida-201 301. The authority holds that the petitioner a major producer of Subject goods m India accounts for almost 70% of the total domestic production, and therefore, satisfies the standing to file the petition on behalf of the domestic industry as per Rule 5(a) and (b) and Rule 2(b).

4. NORMAL VALUE <& EXPORT PRICE

Under Section 9A(l)(c), normal value in relation to ar\ 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 lew volume of the sales in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either:-

If fed in Rotary Cooler to bring down the temperature of the mass to /Atmospheric Temperature. Finally the dry chaline chloride is Milled and filled in bags.

The carrier normally used is a Silica, corn Cob powder or similar absorbent powder derived from agro-waste materials. The earner is used merely to carry the product, Choline chloride. The commercial nomenclature of the product depends upon the corner used rnd the concentration of Choline. In case the earner used is corn cob, the product is commercially called Choline Chloride Corn Cob base the corner used is vegetable, it is known as Choline Chloride Vegetable base. The concentration of Choline Chloride is also usually mentioned alongwith the carrier used. In case the concentration is 50% Choline Chloride, it is called Choline Chloride 50% Corn Cob (or vegetable) base.

The various grades of Choline Chloride are Choline Chloride on Corn Cob Carrier, Choline Chloride on Silica Carrier and Aqueous Choline Chloride.

The product falls under OGl and attracts the basic duty of 35% with 10% surcharge. The present investigation covers all types, forms and grades of Choline Chloride, regardless of its concentration and the corner used. The classification is however, indicative only and is in no way binding on the scope of the present investigation,

2. UKE ARTICLE

The authority notes that the petitioner has claimed that goods produced by them and as classified by the Custom Tariff under the Head 2309.9001 and 2923.1001 have no substitute and that there is no significant difference in Choline Chloride produced by the domestic industry and that exported from' subject countries viz. domestic and those imported from the subject countries. The consumers of the product ore using both the products without making any changes in their production process. Also according to the petitioner's information there is no significant difference in the production process adopted by the petitioner and the producer in the subject countries. The authority further notes that the cooperating exporter M/s Akzo Nobel Chemicals 5.p.A. and the other interested parties viz.

(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 same 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);

Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transshipped through the country of export or such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin.

A. Territory of European Union

0 M/s Akzo Nobel Chemicals S.p.A., Italy A M/s Akzo Nobel Functional Chemical BV. Netherlands

a) Normal value

The manufacturer exporter has furnished details of domestic selling prices of the subject goods in the POI. The exporter has indicated that they have made exports to India which have been profitable for the entire period of investigation and also that the goods sold by them in the domestic market do not differ from the products exported to the Indian market. The exporter has produced balance sheet for the entire business unit, which indicates that the exporter has made profits during 1999. The authority also notes that the exporter has not claimed any specific adjustments for their domestic selling prices. However, there is evidence available that the credit period of * ** days have been allowed on the domestic sales. The authority notes that the exporter has also granted a credit of * ** days for exports to India. The credit cost and the credit period are indicated on the export documents provided by the exporter. The rate of interest for domestic sales has been referenced on the basis of the _37 credit cost and credit period incurred on account of the export sales to India. The Authority on the basis of the available information considers the domestic prices in the normal course of trade for the purpose of preliminary determination only pending final determination. The authority notes that that the quantities sold in the domestic market are also available in the documents as provided by the exporter. The weighted average domestic selling price of Choline chloride on 60% vegetable carrier comes to ***$/MT. By allowing adjustment of ****$/MT for the credit cost, the authority has calculated the normal value for domestic sales as ***$/MT in the POI for the purpose of preliminary determination. The authority would disregard the information for the final determination in case the exporter does not provide the complete information as requested in the questionnaire sent to them.

b) Ex factory Export price

The exporter has provided details of CIF export prices of subject goods to India during the POI. The weighted average CIF export price to India of Choline Chloride (60% vegetable carrier) comes to ***$/MT. The exporter has also provided with details of the month-wise quantity exported to India in the POI alongwith the agent commission and ocean freight. The authority notes that there is evidence of credit of * * ** days being extended by the exporter to its customers in India. The authority also notes that the petitioner has provided details on the likely costs incurred on account of inland freight, port expenses and ocean insurance by the exporter while making exports to India. The authority for the purpose of preliminary determination has considered the weighted average CIF prices as provided by the exporter and has allowed adjustments on commission, credit cost and ocean freight to an extent of ***, *** A ***$/MT respectively as indicated by the exporter and to an extent of ***, *** A ***$/MT respectively on ocean insurance, port expenses and inland freight as provided by the petitioner. The exporter has not substantiated the adjustment as claimed by them on account of special price offered to their customer in India on account of they being wholesalers. The authority has, therefore, disreaarded the same The ^sa-sr/a.*/ — t38 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 1] ex-factory export price for the subject goods in the POI comes to ***$/MT.

ii) Non-cooperating exporters other than M/s Akzo Nobel

Chemicals 5.p.A. Italy <& AA/s Akzo Nobel Functional Chemical BV.

Netherlands

a) Normal value

The authority notes that the petitioner has provided a secondary source evidence for the domestic selling prices in the European Territory. Since only one the exporter has responded, the authority considers it appropriate to refer the secondary source for the purpose of determination of the normal value for all exporters other than the cooperating exporter. The normal value for such exporters is referenced at ***4/MT b) Ex-factory export price

The authority notes that the petitioner has provided details of the month-wise CIF export prices and quantities to India of the subject goods in the POI. The petitioner has sought adjustments on ocean freight, ocean insurance, commission, inland freight, port handling to an extent of ***, ***, ***, *** A ****$/MT respectively. The authority has for the purpose of preliminary determination evaluated the weighted average ex-factory export price for the non- cooperating exporters by considering the average CIF prices and adjustments as provided by the petitioner except ocean freight for which data provided by the cooperating exporter has been referenced. The ex-factory export price comes to ***$/MT.

B. PR China

i) M/s Yixinq Akzo Nobel Sanyuan Chemicals Co. Ltd. Dushan,

China

The authority notes that the exporter has indicated that they have not made any exports of the subject goods in the POI to India.

The authority, therefore, notes that Rule 22 of the Anti-Dumping Rules would be attracted for the above exporter.

ii) All exporters/manufacturers

a) Normal value

The authority notes that none of the exporters has responded to the questionnaire. The authority in the absence of the response, considers it appropriate to construct the normal value for such exporters. For the purpose of construction of the normal value, the authority has referenced the best available information by considering the cost of production of subject goods in PR China by making appropriate adjustments on capacity utilization and bench marking the best practices of raw material utilization on the cost of production data of the subject goods made available by the petitioner. The weighted average normal value comes to ****$/MT.

b) Ex-factory export price

The authority notes that the petitioner has provided the weighted average CIF price for the POI of imports of subject goods from PR China. The petitioner has also claimed adjustments on ocean freight, ocean insurance, commission, inland freight, port handling to an extent of ***, ***, ***, *** A ****$/MT. The weighted average ex- factory export price comes to ****$/MT.

5. DUMPING-Comparison of Normal Value A Export Price

The rules relating to comparison provides as follows:

"While arriving at margin of dumping, the Designated Authority shall make a fair comparison between the export price and the normal value. The comparison shall be made at the same level of trade, normally at ex-works level, and in respect of sales made at as nearly possible the same time. Due allowance shall be made in each case, on its merits, for differences which affect price comparability, including differences in conditions and terms of sale, taxation, levels of trade, quantities,40 THE GAZETTE OK [NOfA EXTRAORDINARY IPAujf--SiM-.il physicol characteristics, and any other differences which are demonstrated to affect price comparability."

The authority has carried out comparison of weighted average normal value with the weighted average ex-factory export price for evaluation of dumping margin.

The dumping margins for the producers/exporters of the subject goods in the subject countries are as under; --

Exporter/producers Normal value Export price Dumping j

($/MT) ($/MT) margin(%) ' Territory of European Union

| '

i !

M/s Akzo Nobe! Chemicals

j |

S.pA, Italy & M/s Akzo Nobel I ***** ! ***** I 28.14 j Functional Chemical BV,

\ Netherlands

i

;

All other exporters/producers ***** ***** | 51,6 ' PR China

j j | I j I ;

All exporters/producers j ***** j ***** | 101 75 !

The above dumping margins are above the deminimus limits.

6- INJURY AND CAUSAL LINK

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..." 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 article in India, or whether the effect of such imports is otherwise to depress prices to a41 significant degree or prevent price increases, which otherwise would have occurred, to a significant degree.

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

The Authority observes the following

i) The authority notes that the subject goods ore imported under customs Tariff Head 2309.9001 as "compound animal feed" and under 2923.1001 as "Liquid Choline Chloride". The nomenclature "compound animal feed" being a broad and generic classification includes products other than subject goods also. As there are only a few major importers of the subject goods in India, the port- wise details of imports of subject goods in the POI as provided by the petitioners is, considered appropriate for determining the imports volume and value of the subject goods from the subject and non-subject countries for the purpose of preliminary determination.

The authority observes that the imports from China PR have increased from 4 MT in 98-99 to 31.2 MT in POI, thus increasing its percentage in total volume of imports terms from 1.6% to 4.52% and its market share as percentage of demand from 0.14% to 0.64%. As regards, European Union, the authority observes that the imports from European Union have increased from 1.22 MT in 98- 99 to 636 MT in POI, thus increasing its percentage in total volume of imports terms from 0.5% to 92.18% while its market share as percentage of demand from .04% to 13.04%.

ii) Though the market share, production and sales of the petitioner have increased, the petitioner has been forced to sell the subject goods below the Non Injurious Price (NIP) in the POI on account of price suppression caused by the dumped imports from subject countries, leading to un-remunerative prices and consequentially financial losses.

7. I N D I AN INDUSTRY'S INTEREST A OTHER ISSUES

It has been argued by certain interested parties that the levy of anti-dumping duties, will affect the user industry as it is an essential ingredient for manufacture of compound animal feed and by increase of its prices, it will led to increase in the prices of the animal products for human consumption viz. milk, eggs and meat. It has also been argued that the domestic industry is not supplying the subject goods in the domestic market at international prices and that their export prices to other countries are also at prices lower than that they charge from the domestic market. The authority has considered the above arguments and holds that 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 m the general interest of the country.

The authority recognises that though the imposition of anti- dumping duties might affect the price levels of the products which manufactured/produced with the usage of the subject goods and consequently might have some influence on relative competitiveness of these products are, however, fair competition in 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 the dumping practices and would prevent the decline of the domestic industry and help maintain availability of wider choice of the subject goods to the consumers. Imposition of anti- dumping measures would also not restrict imports from the subject countries in any way, and, therefore, would not affect the availability of the products to the consumers.

LANDED VALUE

The landed value has been determined for the subject goods after adding on weighted CIF, the applicable level of custom duties (except duties levied under Section 3, 3A, 8B, 9, 9A) and one percent towards landing charges for the purposes of preliminary determination pending final investigation.

D. CONCLUSIONS;

It is seen, a f t er considering the foregoing, t h a t:

a) The subject goods in all forms originating in or exported f r om the subject countries have been exported to India below its normal value.

b) The domestic industry has s u f f e r ed material injury by way of decline in its market share and financial losses due to depressed Net Sales Realization (NSR) on account of price depression caused by low landed prices of the dumped subject goods.

c) The injury has been caused to the domestic industry by dumping of t he subject goods originating in or exported f r om t he subject countries. The authority recommends anti-dumping duty on imports of all forms/grades of subject goods falling under Chapter 23 and 29 originating in or exported f r om t he subject countries.

d) It was considered to recommend t he amount of anti-dumping duty equal to t he margin of dumping so as to remove t he injury to the domestic industry. Accordingly, it is proposed t h at provisional anti dumping duties as set out below be imposed, f r om t he date of notification to be issued in this regard by t he Central Government, on all imports of all forms, grades and concentration of subject goods originating in or exported f r om European Union and PR China falling under Chapter 23 and 29 of t he Customs sub- heading 2309.9001 and 2923.1001 of t he Customs T a r i f f, pending final determination.

44 __ _ THE GAZETTE OP INO'A: PXTPAOKDINAft\ J?--^¹ L'^ililiJ2 3 1 Product SI No. Nome of the exporter/ producer

Amount of i Duty(J5$/MT)

j 1.

Territory °f European Union

1 N\/5 A\

148 3fi 5,p,A. Italy arid M/s Ak20 any carrier

Choline chloride 100% concentration on

Nobe! Functional Chemcal 8V,

247.25

any carrier

Netherlands

Choline chloride: 50% concentration on

123.62

any corner'

Cholme chloride 70% concentration on

173 08

any earner

All other exporters/ Cholme chloride 60% concentration on

272 63

any carrier

producers

Cholme chloride 100% concentration on

454 5

any earner

Choline chloride 50% concentration on

227 23

any carrier

Choline chloride 70% concentration on

318.12

any carrtzr

2.

PR China

All exporters/producers

Cholme chloride 60% concentration on

4615

any carrier

!

Choline chloride 100% concentration on

769 17 e) As noted by the Authority in foregoing para C(l), the subject goods, are available on different carriers with different concentration. The anti-dumping duties as set out below are recommended for 50%, 60%, 70% and 100% concentration of subject goods in any form and on any type of carrier viz. corn cob base, vegetable base or silica base. The amount of anti- dumping duty would be determined proportionately for any other extent of concentration of the subject goods i.e. 40% Choline Chloride would attract duties of 98.90$/MT i.e. 40% of the duty prescribed for 100% Choline Chloride in respect of AA/s Akzo Nobel Chemicals S.pA, Italy and M/s Akzo Nobel Functional Chemical BV, Netherlands.

4.'.

f) AA/s Yixing Akzo Nobel Sanyuan Chemicals Co. Ltd., PR China would attract provision of the Rule 22 of the. Anti-Dumping Rules.

E. FURTHER PROCEDURE

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/manufacturers of -subject goods in subject country, 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 the 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 conduct verifications to the extent deemed necessary:

d. The Authority would provide opportunity to all interested parties for oral submissions, for which the date and time shall be communicated to all known interested parties separately;

e. The Authority would disclose essential facts before announcing final findings.

L.V. SAPTHARISHI, Designated Authority IVMIL-II by llm MiiiiagtT, U.ivt, ul India Press. Kins Routi, Maynpun, Nov Dilhi-1 irjOt)4

ind Published hv the Cnnlmlk-r " I" PiililK-alinna. IVIhi-l IOO?4,