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

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 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

European

Union(hereinafter referred to QS subject countries).

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC 11

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 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.

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.

ix)

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):

AA/s Bayer AG, Germany

M/s Enichem Elastomeri S.r.l., Italy

M/s Huls AG, Germany

M/s Bunawerke Huls Gmbh, Germany

M/s Chemical Company "Dwory" SA, Poland

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):

M/s Banik Rubber, Calcutta

M/s B Rubber, Ghaziabad

M/s Oswal Industries, Delhi

M/s Lakhani, Haryana

M/s Aarthi Enterprise, Noida

xii) Response/ information to the questionnaire/notification was filed

by the following exporters/producers of the subject countries:

N\/s Firma Chemiczna Dwory 5.A. , Poland filed by l^/s Arthur

Anderson

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:

THE GAZETTE OF INDIA: EXTRAORDINARY

[PAR I I—SEC. 11

1. 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

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).

B .

VIEWS

EXPORTERS,

IMPORTERS

AND

OTHER

INTERESTED PARTIES

PETITIONER'S VIEWS

ON PRODUCT UNDER CONSIDERATION AND LIKE ARTICLE

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.

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 :ooi

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.

ON DUMPING

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%.

ON INJURY AND CAUSAL LINK

The domestic industry has stated that the injury is evident from many

parameters:-

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.

III) 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.

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.

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) I t has become un-remunerative to continue the operations under

these circumstances.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC. 11

xiii) 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.

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.

M/s Bayer International 5.A., Switzerland has made the

following submissions:-

i) The exporter has indicated that they have already been

subjected

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 has

submitted that this volume is not significant to cause injury to the

indigenous producers.

IMPORTERS AND USER ASSOCIATIONS VIEWS

M/s Paragon Rubber Industries, M/s Leo Rubbers and M/s

Paragon Polymers has made the following submissions. -

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)

I t 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.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART I—SEC 1]

M/s Malaya Trade Impex P Ltd. has made the following

submissions: -

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.

M/s Automotive Tyre Manufacturers Association has made the

following submissions--

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.

All India Rubber Industries Association has made the following

submissions:-

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.

AW India Federation of Rubber Footwear /Manufacturers has

made the following submissions:-

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 SBR

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.

Others:

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. I t 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.

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.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC. 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.

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).

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).

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-

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC. 1]

Territory of European Union

M/s Bayer International 5.A.. Switzerland

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.

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 of

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.

POUND

M/s Firma Chemiczna Dwory S.A.

Normal value

7')2 GI-2(101

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

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 I I 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,

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*** $ / M T reSpectjve|y, The

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 in

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

Territory of European Union

M/s Bayer International SVV,

Switzerland

All other exporters/ producers

of Territory of European Union

Poland

M/s Firma Chemiczna Dwory

All other exporters/producers

Normal value

($/MT)

*****

Export price

($/MT)

*****

Dumping

margin(%)

103.03

128.7

4.9

115.9

The above dumping margins are above the deminimus limits.

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 of

T u 'T*⁵

°"^Pn'^CeS' *^{iS co}"^sidered necessary to examine

Aether there has been a significant price undercutting by the dumped

'TT

°l

CT/

a r e d Wl+h the Pnce of the "ke a ^ L in IndTor

whether the effect of such imports is otherwise to depress prices^ a

s e c a n t 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 maroTof

dumpmg etc. have been considered in accordance with Annexure II(iv)

of the rules supra.

The Authority observes the following

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.

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 (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,

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.

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 exportec! 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 (N5R) 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 the subject goods falling under

Chapter 40 originating in or exported from the subject countries.

I t 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,

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 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.

Sl.No.

Exporter/producer

Poland

M/s Firma Chemiczna Dwory SA

All other exporters/ producers

Territory of European Union

M/s

Bayer

International

SA,

Switzerland

All other exporters/ producers

Product

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 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 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

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 Polymer

Amount of dut>($/MT)

45.7

845.5

799.25

886.3

THE GAZETTE OF INDIA EXTRAORDINARY

[PART]—SFC 11

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

subject

goods

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

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