REGD. NO D L -33004/99
The Gazette of India
EXTRAORDINARY
PARTI—Section 1
PUBLISHED BY AUTHORITY
No. 69] NEW DELHI, TUESDAY, MARCH 13, 2001/PHALGUNA22J922
(1)
792 G1/20012 THE GAZETTE OF INDIA; EXTRAORDINARY [PART I—SEC. 11 3 4 THE GAZETTE OF INDIA EXTRAORDINARY [PART I—SEC 1] 5 6 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. I] 7 8 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 1] 9 792 Cil 2001 210 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 1] 11 12 THE GAZETTE OF INDIA: EXTRAORDINARY JPART I—SEC. 1] 13 14 THE GAZETTE OF INDIA: EXTRAORDINARY IPARTI—SEC. 11 15 16 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 11 17 7CJ2 c.i : o oi - iI x THE GAZETTE OF INDIA. EXTRAORDINARY [PART 1—SEC. 11 I"20 THE GAZETTE OF INDIA: EXTRAORDINARY [ P A R I I — S E C I] 21
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(Directorate General of Anti-Dumping and Allied Duties)
NOTIFICATION
New Delhi, the 13th March, 2001
PRELIMINARY FINDINGS
Sub. : Anti-Dumping investigation concerning imports of High Styrene Butadiene
Copolymer/High Styrene Resin/Rubber (HSR) from originating in or exported from Poland
and Territory of European Union.
No. 22/1/2000-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 Apar Industries Ltd. and M/s Apcotex Lattices Ltd. (hereinafter also referred to as petitioner) having registered offices at Apar House, Corporate Park, Sion-Trombay Road, Chambur, Mumbai-400021 and 49-53, Mahavir Centre, Plot No. 77, Sector-17, Vashi, Navi Mumbai-400073 respectively on behalf of domestic industry, alleging dumping of High Styrene Butadiene Copolymer/High Styrene Resin/Rubber (HSR) (hereinafter also referred to as subject goods) originating in or exported from Poland and Territory of European Union(hereinafter referred to QS subject countries).
22 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC 11ii) 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 Poland and Territory of European Union. The Authority notified the Embassy of Poland and Delegation to the European Commission in New Delhi (hereinafter also called Embassies of the subject countries) about the receipt of dumping allegation before proceeding to initiate the investigation in accordance with sub-Rule 5(5) of the Rule.
iv) The Authority issued a public notice dated 20.12.2000 published in the Gazette of India, Extraordinary, initiating Anti-Dumping investigations concerning imports of the subject goods classified under custom Code 4002.1902 of Schedule I of the Customs Tariff Act, 1975 originating in or exported from Poland and Territory of European Union.
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 \r\ writing \r\ 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 \r\ India during the past three years, including the period of investigation.
viii) 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.
23ix) The Authority sent a questionnaire to elicit relevant information to the following known exporters/producers in the subject countries in accordance with the Rule 6(4):
1. AA/s Bayer AG, Germany
2. M/s Enichem Elastomeri S.r.l., Italy 3. M/s Huls AG, Germany 4. M/s Bunawerke Huls Gmbh, Germany
5. M/s Chemical Company "Dwory" SA, Poland
x) The Embassies of the subject countries in New Delhi were informed about the initiation of the investigation in accordance with Rule 6(2) with a request to advise the exporters/producers from their countrier 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 Banik Rubber, Calcutta 2. M/s B Rubber, Ghaziabad
3. M/s Oswal Industries, Delhi 4. M/s Lakhani, Haryana 5. M/s Aarthi Enterprise, Noida
xii) Response/ information to the questionnaire/notification was filed by the following exporters/producers of the subject countries:
1. N\/s Firma Chemiczna Dwory 5.A. , Poland filed by l^/s Arthur Anderson
2. M/s Bayer International S.A., Switzerland
xii) Response/information to the questionnaire/notification was filed by the following Importers/user Associations/other interested parties:
24 THE GAZETTE OF INDIA: EXTRAORDINARY [PAR I I—SEC. 111. M/s M/s Paragon Rubber Industries, Kerala}f iled by 2. M/s Leo Rubbers, Kerala }5trategic Law 3. M/s Paragon Polymers, Kerala }Group
4. M/s Malaya Trade Impex P Ltd, Kottayam (filed by MA Sharma Associates)
5. M/s All India Federation of Rubber Footwear Manufacturers, New Delhi
6. Automotive Tyre Manufacturers Association, New Delhi 7. All India Rubber Industries Association, Mumbai
M/s Rishiroop Polymers Pvt. Ltd., Mumbai have filed response in capacity of an interested party other than importer/exporter.
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 ar\ interested party on confidential basis and so considered by the Authority under the Rules,
xix) Investigation was carried out for the period starting from 1.1.2000 to 30.9.2000 i.e. the period of investigation (POI).
25B . VIEWS OF EXPORTERS, IMPORTERS AND OTHER
INTERESTED PARTIES
1. PETITIONER'S VIEWS
a) ON PRODUCT UNDER CONSIDERATION AND LIKE ARTICLE i) The complete description of the product is high Styrene Butadiene Copolymer also called high Styrene Resin/Rubber (HSR) which covers SBR 1900 series and HSBR. SBR 1900 series refers to high Styrene resin master batch (also called emulsion resin rubber master batch). HSRB refers to high Styrene reinforcement polymers, ii) HSR can be of various grades and forms and is produced in granular and bale form. The grade of HSR is normally described in terms of Styrene content and mooney viscosity. Indian industries produce HSR which is equivalent of all those grades which are being imported at present from Poland and European Union. Further the industry is also in a position to produce equivalent of all those grades which are being produced in Poland and European Union even though the same are not being exported to India at present,
iii) HSR is manufactured by producers of Styrene butadiene rubber only and is consumed in the rubber industry.
iv) HSR has been categorized under custom sub heading 4002.1902 in chapter 40 and is also imported under custom sub-heading 3903.9000. The only difference between the goods imported under chapter 39 and 40 is that of percentage content of styrene which does not render the product as different and the product will has almost similar technical and commercial applications.
v) HSR usage requires fine tuning of the production process to accommodate the usage of HSR made by different suppliers.
Consumers in India as other parts of the world can use HSR produced by any manufacturer interchangeably without making any change in the plant and equipment.
vi) There is no direct substitute for HSR. There are other polymers such as EVA etc. used in footwear application. However, EVA does not directly substitute HSR.
T)2 i;i : o oi 426 THE GAZETTE OF INDIA. EXTRAORDINARY [PART I—Stc. 1] vii) There is no significant difference in the HSR produced by the petitioner and the HSR exported from the subject countries. There cannot be any difference in the technology adopted by M/s Apar Industries Ltd. and tA/s Apcotex Lattices Ltd. and the technology adopted by the producers in Poland and European Union as HSR world over is produced by polymerisation technology. However, every producer fine tunes its production process considering available facilities and necessities.
b) ON DUMPING
i) The domestic industry has constructed the normal value for the exporters in the subject countries on the basis of the cost of production considering international prices of the major raw materials.
ii) The domestic industry has provided the export price on the basis of the secondary source during the POI with adjustments on ocean freight, marine insurance, commission, inland transport and port 'handling and port charges.
iii) The dumping margin for European Union has been stated at 140% while for the exporters from Poland at 126%.
C) ON INJURY AND CAUSAL LINK
The domestic industry has stated that the injury is evident from many parameters:-
i) Significant rise in dumped imports from subject countries in a very short period which indicates the likelihood of substantially increased importation in future.
ii) Substantial capacity available to export with the exporters in the subject countries given that other countries (who were hitherto exporting the material) have recently been effectively covered under anti-dumping duties from these countries.
27III) Sufficient freely disposable capacities exists given that the consumption world wide is far less than the capacities built up and the exporters in these countries have very quickly attempted to capture the market upon imposition of duties on other countries.
iv) Imports are entering India at prices which have and will continue to have a significant depressing effect on domestic prices.
v) Imports are entering at prices which are significantly below the price at which goods are being sold by the Indian producers. The imports are thus resulting in severe price undercutting and would resulting insignificant increase in imports or decline in the domestic price.
vi) Losses of the domestic industry have piled up. The industry has been forced to sell at prices below the optimum cost of production end reasonable return on investments.
vii) Operating margins of the domestic industry have been declining substantially as a result of severe price undercutting.
viii) Stock with the domestic industry have piled up.
ix) Capacity utilization of the industry has remained sub optimal. The industry has not been able to utilize its plant optimally in spite of imposition of anti-dumping duties on other countries.
x) Domestic industry market share has been reducing in view of the dumped imports and the market share of these countries is increasing.
xi) Employees with the domestic industry are completely demoralized and are leaving the industry as a result of continued dumping of the product in the market.
xii) It has become un-remunerative to continue the operations under these circumstances.
28 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 11xiii) The domestic industry is unable to grow in view of no investments forthcoming from stakeholders and internal accruals etc. as a result of continued dumping of this product in the Indian market.. xiv) One manufacturer (Synthetic & Chemicals Ltd.) has already applied to BIFR.
2. EXPORTER'S VIEWS
a) M/s Firma Chemiczna Dwory 5.A. Poland has made the following submissions:-
i) The exporter has provided details of the domestic selling price, export price and various adjustments thereof during the POI for the subject goods in the questionnaire as prescribed.
ii) The exporter has sought adjustments on the export sales on account of discounts/commissions paid to their agent in India, inland freight, overseas freight, packing and VAT refund. The exporter has also provided the cost of production of the subject goods during the POI.
iii)The exporter has submitted that as per their data there is no dumping margin for the exports made to India.
b) M/s Bayer International 5.A., Switzerland has made the following submissions:-
i) The exporter has indicated that they have already been subjected to anti-dumping investigation on SBR and were exonerated and are surprised that once again a similar investigation has been initiated on one specific grade of SBR.
ii) The exporter has provided a copy of the one invoice on domestic sales, one invoice on exports to Sri Lanka and a few invoices on exports to India during the POI.
iii)The exporter has indicated that they have exported 437 tonnes of Krylene HS 260 grade to India and that it contributes only 2% of the total consumption for the year 2000. The exporter has29 submitted that this volume is not significant to cause injury to the indigenous producers.
3. IMPORTERS AND USER ASSOCIATIONS VIEWS
a) M/s Paragon Rubber Industries, M/s Leo Rubbers and M/s Paragon Polymers has made the following submissions. -
i) Details on imports made by them from Japan and USA of the subject goods in the POI have been provided and it has been indicated that imports from Poland were made recently only.
ii) It has been indicated that they manufacture rubber Hawai slippers which is the most common footwear used by lower middle class and rural people because of the low price and that HSR is the main ingredient to manufacture good quality Hawai chappal. Any increase in the cost of synthetic rubber will affect their cost of production and that the domestic producers products are very inferior in quality and that their production capacity is also less whereas the current demand for HSR for Indian footwear industry is still above 30,000 MT per year.
iii) The importers have provided details on imports made by them from Japan and USA of the subject goods in the POI and have indicated that they are importing from Japan at a higher cost by paying anti-dumping duty. They have indicated that the quality of domestic manufacturer is inferior and cannot meet their requirement both supply wise and quality wise. They have also now started importing from Poland.
iv) The levy of anti-dumping duty will adversely affect the small scale sector industries and thereby increase the burden of common man in India.
30 THE GAZETTE OF INDIA EXTRAORDINARY [PART I—SEC 1]b) M/s Malaya Trade Impex P Ltd. has made the following submissions: -
i) They have provided details of imports of subject goods viz. KER HSR 1904 grade from Poland in the POI alongwith supportive invoices. The importer has also provided details on imports from other countries also.
a) M/s Automotive Tyre Manufacturers Association has made the following submissions--
i) HSR is not used by tyre industry and that their apprehension is that the two grades viz. SBR 1702 and 1502 which are consumed by the tyre industry may also be brought under the purview of the investigation. ATMA has indicated that the Directorate may ensure that this does not happen and that ATMA be treated as an interested party as far as this investigation is concerned.
b) All India Rubber Industries Association has made the following submissions:-
i) They have stated that they strongly protest levy of anti-dumping duty on HSR from Poland and European Union as there is no substantial dumping of the subject goods. The erstwhile largest domestic producer of the subject goods f^/s Synthetic and Chemicals Ltd. has closed down since July 1999. Hence whatever imports are taking place they are just to bridge the demand supply gap as the demand exceeds the domestic supply. As such the imports are only to the extent of short fall in supply.
c) AW India Federation of Rubber Footwear /Manufacturers has made the following submissions:-
i) The purpose of filing the petition before the authority is to increase prices of HSR on one pretext or the other. There is no substantial dumping of subject goods from Poland and European Union.
f^/s Synthetic and Chemicals Ltd. who claimed to produce 85% of SBR31 is closed down and whatever imports are taking place these are just to bridge the gap between the demand and supply QS the demand exceeds the supply.
d) Others:
i) M/s Rishiroop Polymers Pvt. Ltd., Mumbai have indicated that they are neither the concerned exporters or importers of the said articles under investigation from the named countries but desired to be an interested parties because a similar dispute is pending concerning the article under investigation before the Supreme Court in our Appeal filed against CBGAT. It is with regard to the product SBR to which the anti-dumping duty has to be made applicable. AA/s Apar Industries Ltd. have said to confuse the affairs with the argument that the product falls under Chapter 3903.9000 which is same as that under Chapter 40 SBR-1900 series. Since this action tends to indirectly seek the confirmation of the approval of the DA via the current investigation of the issue mentioned above we strongly object the same. In the final findings concerning imports of SBR from Korea, the previous authority has held that the product KOSYN-KHS-68 is a synthetic Resin falling under chapter 3903.90 and it is synthetic butadiene co polymer which was not to be covered by the scope of investigation undertaking at that time. We desire to participate as interested party as provided in the WTO rules solely to clarify and to dispute the article under investigation so that no indirect or circumvented references are inferenced to our pending matter in the other anti-dumping investigation as a fall out from any findings in this current investigation.
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.
32 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 1]1. PRODUCT UNDER CONSIDERATION
The product under consideration in the present investigation is High Styrene Butadiene Copolymer, also called High Styrene Resin/Rubber (HSR) of all grades and forms. HSR covers SBR 1900 series referring to High Styrene Resin Latex Master batch and HSBR referring to High Styrene re-informement Polymer HSR is manufactured by producers of Styrene Butadiene Rubber (SBR) only and is consumed in rubber industry. HSR is classified under customs subheading NO. 4002.1902. The authority notes that the product under consideration has also been reported to be cleared under head 3903.9000 viz. other Polymers of Styrene. The SBR 1500 and 1700 series are not covered in the scope of investigation. The classification, is therefore, indicative only and in no way binding on the scope of the present investigation.
2. LIKE ARTICLE
The authority notes that there is no significant difference in the goods produced by the Indian industry and High styrene Butadiene Copolymer (HSR) exported from the subject countries. Both are claimed to have similar characteristics and are technically and commercially substitutable in the end use industry viz. the rubber and footwear industry.
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 M/s Apar Industries Ltd. and M/s Apcotex Lattices Ltd. The authority holds that the petitioners are the only producers of Subject goods in India 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).
334. NORMAL VALUE <& EXPORT PRICE
Under Section 9A(l)(c), 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 \n 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 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:-
(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.
y$i$t\xc>oi — 5-34 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 1]
A. Territory of European Union
i) M/s Bayer International 5.A.. Switzerland
a) Normal value
The authority notes that the exporter/producer has not provided the information as per the prescribed questionnaire. The producer/exporter has only provided one sales invoice of the subject goods viz. Krylene HS 260 grade sold to one of their customers in UK during the POI. The average net selling price of the subject goods on the basis of this invoice comes to * ** EUR/MT. The authority has on the basis of the import rates as notified by Ministry of Finance (MOF) referenced this selling price as ***$/MT. However, since no Cost of production details have been provided it \s not possible to evaluate as to this fransacilon \s in the normal course of trade. The authority also notices that exporter/producer has provided the details of exports made to Sri Lanka during the period of investigation which also cannot be referenced as no data for cost of production and domestic sales is available to evaluate third country exports as dumped or non- dumped. The authority, therefore, disregards information for the purpose of preliminary determination and proposes to reference the information as provided by the petitioner for the purpose of preliminary determination pending final determination. The normal value has, therefore, been referenced on the basis of the constructed cost of production which comes to ***$/MT.
b) Ex factory Export price
The authority notes that the exporter/producer has provided copies of export invoices of the subject goods viz. Krylene HS 260 to India in the POL The export invoice to Sri Lanka indicates incidence of ocean freight and ocean insurance to an extent of * ** A ***$/MT respectively. The authority proposes to reference these levels of35 ocean freight and ocean insurance on export sales to India keeping in view the proximity of Sri Lanka to India and the fact that no details have been provided by the exporter regarding the exfactory export price to India. Further to adjustments on ocean freight and ocean insurance, the authority also proposes to grant adjustments on account of expenses incurred on inland freight, commission paid to agent and port handling to an extent of ***, *** & ***$/MT respectively on the basis of the information provided by the petitioner. The exfactory export price of the subject goods in the POI to India comes to
***$/MT.
Other exporters/producers of Territory of European Union
Normal value
The information of M/s Bayer International S.A. cannot be adopted for the producers/exporters as the information by AA/s Bayer International S.A. is not complete. As no other exporter/producer has provided information, the authority proposes to adopt the information as provided by the petitioner on the normal value constructed on the basis of the cost of production with appropriate adjustments. The constructed normal value in the POI comes to ***$/MT.
Export price
The authority proposes to adopt the export price as provided by the petitioner with adjustments on ocean freight, insurance, inland freight, commission and port handling to an extent to ***, * * * * * *, *** <& ***$/MT respectively. The ex-factory export price in the POI comes to ***$/MT.
B. POUND
\) M/s Firma Chemiczna Dwory S.A.
a) Normal value
7')2 GI-2(101 636 THE GAZETTE OF INDIA: EXTRAORDINARY | PARr I—Srr. 1J The exporter/producer has provided details of the customer- wise sales of KEft 1904 grade synthetic rubber viz. one of the grades of the subject goods in the home market in Poland in the POI. The producer/exporter has also provided the sales price structure and the cost of production for the domestic sales in the POI. The exporter/producer has indicated that they have incurred ***$/MT on selling expenses exclusively on the domestic sales. The exporter/producer has also in their submission indicated certain selling expenses of the export sales of the subject goods to India alongwith the details on the commission paid to their agent in India. The authority after co-relating the expenses incurred on domestic sales and that on the commission notes that the quantum of adjustments exclusively claimed for domestic sales does not appear to be realistic and further that it is also not supported by any evidence/explanation. The authority further notes that on the basis of the cost of production details provided by the exporter/producer sales to certain customers in the domestic market are below the cost of production as claimed by the producer/exporter and are, therefore, not in the normal course of trade. The authority as per Annexure II of the Anti- Dumping Rules has excluded these transactions which are not in the normal course of trade. Also for the purpose of Preliminary Findings, the authority does not consider it appropriate to grant the adjustment of selling and administrative expenses exclusively claimed for the domestic sales. The weighted average domestic selling prices in the normal course of trade comes to ***$/MT in the POI. This selling price is referenced as the normal value also as no adjustment is granted on selling expenses for the purpose of preliminary determination pending final determination, b) Ex-factory Export price
The authority notes that the exporter/producer has provided month-wise export sales to India of the subject goods viz. KER 1904 grade synthetic rubber viz. the subject goods in the POt. The exporter/producer has indicated in the Sales price structure for exports to India, the various adjustments on the export price viz. discounts/commission to their agent, packing, inland freight, overseas freight to an extent of ***, * * * * * * * ** 4 * ** $/ MT r e Spe c tjv e|y, The n exporter has also indicated a VAT refund to an extent of ***$/MT in the POI. The exporter has provided the exports invoice and calculation of VAT. The authority notes that in the cost of production the exporter/producer has also indicated costs incurred on the selling expenses for the export sales to an extent of ***$/MT also. The authority for the purpose of preliminary findings considers the adjustments as indicated by the exporter/producer. The weighted average ex-factory export price for the subject goods to India comes to ***$/MT.
Other exporters/producers of Poland
Normal value
As no other exporter/producer has provided information, the authority proposes to adopt the information provided by the petitioner on the normal value constructed on the basis of the cost of production with appropriate adjustments. The constructed normal value for the subject goods in the POI comes to ***$/MT.
Export price
The authority proposes to adopt the export price as provided by the petitioner with adjustments on ocean freight, insurance, inland freight, port charges and commission to an extent to ************& ***$/MT respectively. The ex-factory export price in the POI comes to ***$/MT.
5. DUMPING-Comparison of Normal Value <& Export Price
The rules relating to comparison provides as follows:
"While arriving at margin of dumping, the Designated Authority shall make a fair comparison between the export price and the normal value. The comparison shall be made at the same level of trade, normally at ex-works level, and in respect of sales made at as nearly possible the same time. Due allowance shall be made in each case, on its' merits, for differences which affect price comparability, including differences in38 THE GAZETTE OF INDIA. EXTRAORDINARY [PAR rl—SEC. 1] conditions and terms of sale, taxation, levels of trade, quantities, physical characteristics, and any other differences which are demonstrated to affect price comparability."
The authority has carried out comparison of weighted average normal value with the weighted average ex-factory export price for evaluation of dumping margin.
The dumping margins for the producers/exporters of the subject goods in the subject countries are as under:—
Exporter/producers
Dumping
Normal value
($/MT)
Export price ($/MT) margin(%) Territory of European Union
*****
*****
103.03 M/s Bayer International SVV, Switzerland
*****
*****
128.7
All other exporters/ producers of Territory of European Union
Poland
*****
*****
4.9
M/s Firma Chemiczna Dwory SA
*****
*****
All other exporters/producers
115.9
The above dumping margins are above the deminimus limits.
6. INJURY ANC> 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 of39 11 Tu 'T*5 °" Pn'CeS' * iS co"sidered necessary to examine A e t h er there has been a significant price undercutting by the dumped 'TT °l CT/a r ed Wl+h the Pnce of the "ke a^L in IndTor whether the effect of such imports is otherwise to depress p r i c e s^ a s e c a nt 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 domestrc mdustry m India, indices having a bearing on the state of the industry as production, capacity utilisation, sales quantum stock prof,tab,l,ty, net sales realisation, the magnitude 'and m a r o T of dumpmg etc. have been considered in accordance with Annexure II(iv) of the rules supra.
The Authority observes the following
i) The overall capacity utilization of the two producers has declined from 72.73% in 97-98to 57.13% in the POL
ii) The selling price of the domestic industry has though increased in POI as compared to 98-99 and 97-98, the same has been, however, below the non-injurious price (NIP) on account of dumped imports leading to f\nanda\ losses on accouni of price undercutting.
iii) The demand of the product has not decreased and has, •therefore, not contributed to the injury to the industry.
iv) The above economic parameters cumulatively and collectively establish that domestic industry has suffered material injury on account of dumping.
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 (SSI in particular) as it is an essential input for manufacture of rubber products. The authority has considered the above argument and holds that the purpose of anti-dumping duties, in general, is to eliminate dumping,40 THE GAZETTE OF INDIA: EXTRAORDINARY [PART I—SEC. 11 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.
The authority recognises that though the imposition of anti- dumping duties might affect the price levels of the products which manufactured 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 woujd 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, after considering the foregoing, that:
a) The subject goods in all forms originating in or exported from the subject countries have been exportec! to India below its normal value.
b) The domestic industry has suffered material injury by way of decline in its market share and financial losses due to depressed Net Sales Realization (N5R) 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 the subject goods originating in or exported from the subject countries. The authority recommends anti-dumping duty on imports of all forms/grades of the subject goods falling under41 Chapter 40 originating in or exported from the subject countries. It is also clarified that if the product under consideration as indicated in Para C(l) is cleared under the residual category of "other polymers of styrene" viz. Custom Head 3903.9000 then these goods would also be subjected to the anti-dumping duty, d) It 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 and grades of subject goods originating in or exported from European Union and Poland falling under Chapter 40 of the Customs sub-heading 4002.1902 of the Customs Tariff, pending final determination.
1
3
2
Sl.No.
Exporter/producer
Product
Amount of dut>($/MT)
Poland
1.
45.7
M/s Firma Chemiczna Dwory SA All grades including KER 1904 of High Styrene Resin/Rubber (HSR) covering SBR 1900 series referencing to High Styrene Resin Latex Master Batch/High Styrene re-inforcement Polymer
All other exporters/ producers
845.5
All grades including KER 1904 of High Styrene Resin/Rubber (HSR) covering SBR 1900 series referencing to High Styrene Resin Latex Master Batch/High Styrene re-inforcement Polymer
Territory of European Union
799.25
M/s Bayer International SA, Switzerland
All grades including Krylene HS 260 of High Styrene Resin/Rubber (HSR) covering SBR 1900 series referencing to High Styiene Resin Latex Master Batch /High Styrene re-mforcement Polymer
886.3
All other exporters/ producers
All grades including Krylene HS 260 of High Styrene ResnVRubber (HSR) covering SBR 1900 series referencing to High Styrene Resin Latex Master Batch /High Slyrene re-inforcement Polymer42 THE GAZETTE OF INDIA EXTRAORDINARY [PART]—SFC 11 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 countries, 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 the final findings.
L V SAPTHARISHI, Designated Authority Printed by the Manager, Govl of India Press, Ring Road, Mayapun, New Delhi-110064 and Published by the Controller of Publications, Delhi-] 100J4