THE GAZETTE OF INDIA; EXTRAORDINARY

[PART I—SEC. 1]

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:

PROCEDURE

The procedure described below has been followed with regard to

the investigation:

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 investigation

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.

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 -4

THE GAZET1 R OF fNDIA EXTRAORDINARY

[PAKJ I- Sir 1|

M/$ Akzo Nobel Chemicals S.p.A, Italy

M/s Yixing Akzo Nobel Sanyuan Chemicals Co.Ltd., Dushan, China

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):

M/s Nav Maharasthra Chakan Oil Mills Ltd., Mumbai

M/s Sonam International, Mumbai

?\/s Poultry Federation of India

xii)

Response/ information to the questionnaire/notification was filed

by the following exporters/producers of the subject countries:

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

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:

M/s K Sevantilal & Co., Mumbai

The compound Livestock Feed Manufacturers Association of

India, Mumbai

th/s Poshak Feeds P Ltd., Hyderabad

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

M/s Chokhani Associates, Mumbai

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

M/s Poultry Federation of India, New Delhi

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

EXPORTERS,

IMPORTERS

AND

OTHER

INTERESTED PARTIES

PETITIONER'S VIEWS

ON PRODUCT UNDER CONSIDERATION

Choline chloride a kind of animal compound feed, is a

quaternary ammonium compound, which is colourless, viscid and

strongly alkaline. I t 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 product

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. I f 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.

ON DOMESTIC INDUSTRY

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.

ON LIKE ARTICLE

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.

ON DUMPING

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 of

THE GAZETTE OF INDIA. EXTRAORDINARY

|PM<I I-Shr 1)

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%.

ON INJURY AND CAUSAL LINK

The imports from each of the subject

countries are

deminimus.

The imports were only from the subject countries in April,

1999 to June, 2000.

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.

The export price from the subject country has continuously

declined over the years by more than 20% in the four years.

The petitioner has not been able to realize optimum price for

its product.

The capacity utilization of the product has remained sub-

optimal.

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.

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.

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 sufficient

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.

EXPORTERS VIEWS

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

submissions:-

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.

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.

The market price of Choline Chloride in the world during

August, 99 - November, 99 has been considerably higher

than in India.

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.

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.

The Evidences and data on domestic selling prices and

exports to India are provided on the confidential basis.

I t 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.

THE GAZETTE OF INDIA: EXTRAORDINARY

[P.XKF \—SVC 1J

IMPORTERS ANb USER ASSOCIATIONS VIEWS

ON DUMPING

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.

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.

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.

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.

The product sold by l^/s Vam Organics in the country is

costlier than the international prices by at least Rs. 10/kg.

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.

The import of Choline Chloride has kept the local prices in

check and competitive and at par with the imported prices.

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.

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.

EFFECT ON USER INDUSTRY

1. I f 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. '

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.

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).

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).

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:-

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,

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.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC I [

(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.

Territory of European Union

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

Functional Chemical BV. Netherlands

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.

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.*/ — t

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

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

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.

PR China

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

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.

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,

THE GAZETTE OK [NOfA EXTRAORDINARY

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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

($/MT)

margin(%) '

Territory of European Union

M/s

Akzo

Nobe!

Chemicals

S.pA, Italy & M/s Akzo Nobel I

*****

I 28.14

Functional

Chemical

BV,

Netherlands

;

All other exporters/producers

*****

| 51,6

PR China

;

All exporters/producers

*****

| 101 75

The above dumping margins are above the deminimus limits.

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 a

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

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%.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PARTI—Sne. 1]

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.

INDIAN INDUSTRY'S INTEREST A OTHER ISSUES

I t 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.

I t 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.

CONCLUSIONS;

I t is seen, after considering the foregoing, that:

The subject goods in all forms originating in or exported from the

subject countries have been exported to India below its normal

value.

The domestic industry has suffered 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.

The injury has been caused to the domestic industry by dumping

of the subject goods originating in or exported from the 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 from the subject

countries.

I t was considered to recommend the amount of anti-dumping duty

equal to the margin of dumping so as to remove the injury to the

domestic industry. Accordingly, it is proposed 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 all forms, grades and concentration

of subject goods originating in or exported from European Union

and PR China falling under Chapter 23 and 29 of the Customs sub-

heading 2309.9001 and 2923.1001 of the Customs Tariff, pending

final determination.

THE GAZETTE OP INO'A: PXTPAOKDINAft\

J?--^¹ L'^ililiJ

SI No.

Nome

the

exporter/

producer

Territory °f European Union

N\/5 A\<zo Nobei Chemicals

5,p,A.

Italy arid M/s Ak20

Nobe! Functional Chemcal 8V,

Netherlands

All

other

exporters/

producers

PR China

All exporters/producers

Product

Choime chicridc 60% concentration on

any carrier

Choline chloride 100% concentration on

any carrier

Choline chloride: 50% concentration on

any corner'

Cholme chloride 70% concentration on

any earner

Cholme chloride 60% concentration on

any carrier

Cholme chloride 100% concentration on

any earner

Choline chloride 50% concentration on

any carrier

Choline chloride 70% concentration on

any carrtzr

Cholme chloride 60% concentration on

any carrier

Choline chloride 100% concentration on

any earner

Cholme chloride 5O'X> concentration on

any carrier

Cholme chloride 70% concentration on

any earner

Amount

of i

Duty(J5$/MT)

148 3fi

247.25

123.62

173 08

272 63

454 5

227 23

318.12

4615

769 17

384 6

538 42

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.'.

AA/s Yixing Akzo Nobel Sanyuan Chemicals Co. Ltd., PR China

would attract provision of the Rule 22 of the. Anti-Dumping Rules.

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,