MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

(DIRECTORATE GENERAL OF ANTI DUMPING & ALLIED DUTIES)

NOTIFICATION

New Delhi, the 5th April, 2002

PRELIMINARY FINDINGS

Subject: Anti-dumping investigation concerning Import of Lead Acid Batter*

les originating In or exported from Taiwan, Singapore and Hong

Kong—Preliminary Findings

No. 59/1/2001-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:-

(i)

The Designated Authority (hereinafter referred to as Authority),

under the above Rules, received a written petition from M/s.

Exide Industries Limited, M/s. Amara Raja Batteries Ltd., and

M/s Amco Batteries Limited on behalf of the domestic industry,

alleging dumping of Lead Acid Batteries (hereinafter referred to

as subject goods) originating in and exported from Chinese

Taipei(Taiwan), Singapore, Hong Kong, Thailand, Philippines

and Indonesia.

However, for countries other than Chinese

Taipei(Taiwan), Singapore and Hong Kong(hereinafter referred

to as subject countries), the volume of imports to India was

found to be less than de-minimis limit

prescribed in Anti

Dumping Rules,

THE GAZETTE OF INDIA: EXTRAORDINARY

PART I—SEC. 1]

(ii)

The

Authority

notified

the

Embassies/High

Commission/representative of

subject countries about the

receipt of dumping application made by the petitioners before

proceeding to initiate the investigation in accordance with sub-

rule (5) of Rule 5 supra;

(iii)

The Authority issued a Public Notice dated 2^nd November,

2001, published in the Gazette of India, Extraordinary, initiating

anti dumping proceedings concerning imports of subject goods,

originating from subject countries classified under heading 8507

of Schedule I of the Customs Tariff Act, 1975;

(iv)

The Authority forwarded copy of the said public notice to the

known exporters, importers, industry associations and to the

complainant and gave them an opportunity to make their views

known in writing.

(v)

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

provided a copy of the petition to all the known exporters and

Embassies/High

Commission/representative

subject

countries.

(vi)

The Authority sent questionnaires, to elicit relevant information,

to the following exporters:

1. M/s Evertech Electronics Company Ltd., Taipei, Taiwan

2. M/s Gaston Battery Company Ltd., Hong Kong

3. M/s Calltec Battery Company, Hong Kong

4. M/s Asia Energy Company Ltd., Hong Kong

5. M/s Aik Koon Tyre Battery Co. Pte. Ltd., Singapore

6. M/s Arden Marketing and Services Pte Ltd., Singapore

7. M/s AV Tech Marketing, Singapore

8. M/s Lipson Trading Enterprises, Singapore

9. M/s Power Sonic Singapore Pte. Ltd., Singapore

10.M/s Totex Singapore Pte. Ltd., Singapore

11. M/s Chloride Batteries S.E. Asia Pte. Ltd., Singapore

(vii) The Embassies/High Commission/representatives of subject

countries were also informed about the initiation of investigation

and requested to advise the exporters/producers from their

countries to respond to the questionnaire within the prescribed

time;

(viii) Some of the known users/importerb of subject goods to whom

questionnaire was sent are :

1. Ashok Leyland Ltd., Chennai

2. Bajaj Tempo Ltd., Pune

3. Daewoo Motors India Ltd., Dadri

4. Eicher Tractors Ltd., Faridabad, Haryana

5. Escorts Ltd., (FARMTRAC Divn.,), Faridabad

6. Escorts JCB Ltd., Ballabgarh

7. General Motors India Ltd., Distt.Panchmahal, Gujarat

8. Godrej and Boyce Mfg., Co. Ltd., Vikhroli, Mumbai

9. Greaves Ltd., Ranipet.

10.Gujarat Tractor Corpn. Ltd., Baroda.

11.HMT Ltd., Distt. Ambala, Haryana

12. Honda Siel Power Products Ltd., Udham Singh Ngr., U.P.

13. Hyundai Motor(l) Ltd., Distt.Kancheepuram, Tamil Nadu

14. Hindustan Motors Ltd., Distt. Hooghly, West Bengal

15. Fiat India Automobiles Ltd., Mumbai

16. International Tractors, Hoshiarpur, Punjab

17.Kala Genset Pvt. Ltd., Taluka Khed, Pune

18.L&T John Deere Ltd., Pune

19.Mahindra and Mahindra Ltd.,Mumbai

2O.Maruti Udyog Ltd., Gurgaon

21. Mercedes Benz India Pvt. Ltd,, Pimpri, Pune

22. New Holland Tractors (India) Pvt Ltd., Okhla Indl. Area, New

Delhi.

23.Piaggio Greaves Vehicles Ltd., Baramati, Distt. Pune.

24. Punjab Tractors Ltd., Distt. Ropar, Punjab

25.Swaraj Mazda Ltd., Distt. Ropar, Punjab

26. Scooters India Ltd., Lucknow

27.Swaraj Combine Divn., Distt. Ropar, Punjab

28. San Engineering, Bangalore

29. Tractors & Farm Equipment Ltd., Chennai

30.Tata Engineering & Locomotive Co. Ltd., Lucknow

31. Tata Engineering & Locomotive Co. Ltd., Jamshedpur

32.Tata Engineering & Locomotive Co. Ltd., Pimpri, Pune

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC, 1]

33.Tata Engineering & Locomotive Co. Ltd., Small Car Plant,

Pimpri, Pune

34.Telco Construction Equipment Co. Ltd., Dharward.

35.Toyota Kirloskar Motor Ltd., Bangalore

36. VST Tillers & Tractors Ltd., Bangalore

37Bajaj Tempo Ltd., Pitamphur, Distt. Dhar

38.Caterpillar India Pvt. Ltd., Searapet, Pondicherry.

39.HMT Ltd., Tractor Project, Hyderabad

4O.HMTLtd., Mohali, Punjab.

41.Honda Siel Cars India Ltd., Gautam Budh Nagar

42. Kinetic Engineering Ltd., Pune

43.Mahindra & Mahindra Ltd., Satpur, Nasik(Mah.)

44.Tractors & Farm Equp. Ltd., Doddabalpur.

45.Telco Const. Equp. Co. Ltd., Jamshedpur.

46. Atlanta Systems, Hyderabad

47.Bajaj Auto Ltd., Aurangabad

48.Bajaj Auto Ltd., Pune

49. Birla Yamaha Ltd., Dehradun

50. Yamahaa Motor Escorts Ltd., Ghaziabad(U.P)

51. Hero Honda Motors Ltd., Dharuhera, Rewari

52. Hero Honda Motors Ltd., Gurgaon

53. Kinetic Motor co. Ltd., Pitampur, Distt. Dhar.

54.Linkwell Telesystems (P) Ltd., Secunderabad.(A.P)

55.LMLLtd., Kanpur

56. Majestic Auto Ltd., Ghaziabad, U.P.

57.Metascan Electronics & Comm. Pvt. Ltd., Hyderabad.

58.Monto Motors Ltd., Alwar

59. Royal Enfield Motors Ltd., Chennai

60. Bharat Heavy Electricals Ltd., Bhopal, M.P.

61.Hindustan Copper Ltd., Jhunjhunu

62. Hindustan Aeronautics Ltd., Nasik

63. Hindustan Copper Ltd., Khetri

64. The Commander Works Engineer, Delhi Cantt, Delhi

65. NTPC, Vindhyanagar, Distt. Sidhi

66. Nuclear Power Corporation, Bulandshahar, U.P.

67. National Thermal Power Corpn. Ltd., Talcher.

(ix)

Additional information regarding injury was sought from the

petitioners, which was also furnished by them;

(x)

Domestic

industry

also

furnished

additional

information

regarding imports, constructed cost of production, export price

and adjustments permissible;

(xi)

The Authority kept available non-confidential version of the

evidence presented by various interested parties in the form of

a public file maintained by the Authority and kept open for

inspection by the interested parties;

(xii) ***** in this notification represents information furnished by the

interested party on confidential basis and so considered by the

Authority under the Rules;

(xiii) The investigation covered the period from 1^st October, 2000 to

30^th September 2001.

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

A S S O C H A M etc., for wider circulation.

PETITIONER'S VIEWS

The petitioners have made the following major points in their

submissions:

(i)

Lead Acid Batteries falling under Chapter 85 of the

Custom Tariff Act are being dumped in the Indian market

by the exporters from subject countries. Though the Lead

Acid Batteries have dedicated custom classification under

8507.10 and 8507.20, the goods have been cleared in a

number of other custom headings also as per information

available on shipment-wise imports;

(ii)

The information on import of Lead Acid Batteries

complied

Directorate

General

Commercial

Intelligence and Statistics, would not be very useful for

the purpose of anti dumping investigation for the reason

that different types of batteries would have different cost

and prices and hence the average export price compiled

as per the information available from DGCIS will not give

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC 1]

any meaningful information with regard to clumped price

at which the batteries of different power and life are being

imported.

(iii)

Since there is a direct co-relation between the lead

content in the battery and its associated costs and prices,

export price as well as normal value should be worked out

for lead acid battery on the basis of the weight of lead or

total weight of the battery and comparison should be done

for arriving at a decision regarding dumping margin;

(iv)

There are two broad types of lead acid batteries, namely

automotive lead acid batteries and industrial lead acid

batteries;

(v)

The domestic industry consists of seven producers in the

organized sector and a large number of small producers

in the unorganized sector.

Petitioners account for more

than 50 per cent of the domestic production and have the

standing to file the petition;

(vi)

In the absence of reasonable and authentic information

on domestic prices in the ordinary course of trade in the

subject countries, the normal value has been constructed

on the basis cost of production of M/s Exide Industries

which is a leading producer of lead acid batteries in India.

(vii) The export prices have been compiled on the basis of

information collected from secondary sources making due

adjustment for landing charges, ocean freight, marine

insurance, commission, port handling, etc.

(viii) The domestic industry is suffering injury on account of

dumped imports which is reflected in the form of price

undercutting, lost contracts, fall in profitability, etc. Also

there is a threat of further injury being inflicted on the

domestic

industry on account of continued

price

undercutting, sufficient freely disposable capacity in the

subject countries and lost orders especially to OEM

producers

particularly

automobile

companies

and

industrial users.

IMPORTERS,USERS AND EXPORTERS' VIEWS:

Some of the importers and users such as M/s Union Sales Pvt

Ltd., M/s Monto Motors Ltd., M/s Orchid Electronics Ltd., M/s Kinetic

Motor Co. Ltd., M/s Caterpillar India Pvt. Ltd., M/s Toyota Kirloskar

Motor, M/s Blrla Yamaha Ltd., and M/s Ashok Leyland Ltd., have

responded to the questionnaire sent by the Designated Authority.

Some of the views given by them are as follows:

(i)

India make batteries are not competitive in pricing as well

as quality. It costs 30% to 40% more as compared to

batteries available in Thailand - comparison made is on

landed cost basis. We did not make any comparison of

prices prevailing in Taiwan, Singapore and Hong Kong.

(ii)

Indian

battery

makers

need

improve

the

competitiveness both in terms of price & quality and to be

more competitive in the International Market. Automobile

market is subjected for severe competition globally and

hence inputs need to be competitive also.

(iii)

Domestic battery industry may get temporary relief or

protection by way of imposing anti-dumping duty on

imports, but in the long term will not help the industry.

Such protection may not help to face global competition.

(iv)

Domestic battery industry should accept the competition

and improve competitiveness for the survival and as not

many players are in this field, volume should not be an

issue for economic scale of operations.

Some of the exporters such as M/s Aik Koon Tyre & Battery Co.

Pte.

Ltd., Singapore, M/s Pilot Batery Co. Ltd., Taiwan, M/s CSB

Battery Co. Ltd., Taiwan, and M/s Taiwan Yuasa Battery Co. Ltd.,

Taiwan have given their replies to the Designated Authority. M/s Aik

Koon Tyre & Batter Co. Pte. Ltd., have stated that they have never

I life-£#-.<? «"•«-£

THE GAZETTE QFINDIA: EXTRAORDINARY

[PART I—SEC. 1]

exported Lead Acid Batteries to India before. M/s Pilot Battery Co.

Ltd., Taiwan has stated that they have been exporting their batteries

to India at prices equal to or more than their local sale prices and

have not resorted to any anti dumping activities whatsoever.

EXAMINATION AND FINDINGS BY AUTHORITY

The submission made by the exporters, importers, domestic

industry and other interested parties have been examined and

considered while arriving at these findings and wherever appropriate

have been dealt hereinafter.

The cases of new expo* 1. 5

t^{lose stated}^{to be}^willing^to^give

price undertaking shall be considered, on request, by the Authority in

accordance with the Rules supra.

PRODUCT UNDER CONSIDERATION AND LIKE ARTICLE

Regarding product under consideration, initiation notification

issued on 02.11.2001 reads as follows:-

"the product under consideration is 'lead acid batteries'.

Lead Acid Batteries fall within Chapter 85 of the Custom

Tariff Act under the sub-heading

8507. The batteries are

described as electric accumulators under the Customs Tariff

Act and are classified under customs sub heading Nos.

8507.10 and 8507.20 of the Customs Tariff Act. The Custom

classification is indicative only and not binding on the scope of

investigation".

In the Initiation Notification, it was also mentioned that the

statistics in the case of lead acid batteries are compiled in terms of

number of units and value. But denoting the volume in terms of

number of units or value alone may not provide quite meaningful

information because different models/types of the batteries have

different power capacity, rate of discharge, value, etc.. It was further

stated that there is a correlation between the lead content and the

weight of the battery and its associated costs, prices and

performance characteristics such as power capacity, rate of

discharge etc.. Therefore apart from denoting the product in terms of

number of units and value, it will be useful to have the information on

the product in terms of lead content, weight and power capacity also.

The information on the characteristics mentioned above will be

required for the purpose of calculation and comparison of various

parameters.

10.

The petitioners had claimed that the goods produced by them

are like article to the goods originating in or exported from subject

countries.

There is no argument to the contrary stating that the

goods being manufactured in subject countries and imported into

India from the subject countries are not substituting the lead acid

batteries being produced by the domestic industry.

On the basis of

evidence available, the Authority therefore determines that the lead

acid batteries produced by the petitioners are 'like articles' to lead

acid batteries being imported from the subject countries within the

meaning of the Rules.

DOMESTIC INDUSTRY

11.

It was stated in the Initiation Notification that the petition has

been filed by M/s. Exide Industries Limited, M/s. Amara Raja

Batteries Limited and M/s Amco Batteries Limited on behalf of the

domestic industry. However as per the records available before the

Designated Authority M/s Amco Batteries Limited have imported

significant quantities of lead acid batteries from the countries against

whom petition for initiation of anti dumping investigation has been

filea¹. The Authority, therefore, had decided to exclude M/s Amco

Batteries Limited from the definition of the Domestic Industry as per

the Anti Dumping Rules.

12.

No argument has been adduced for or against the issue of

definition of domestic Industry and the issue of standing of the

petitioners to file the petition. On the basis of the evidence available,

the Authority determines that M/s Exide Industries Ltd., and M/s

Amara Raja Batteries Ltd., have the standing to file the petition and

represent the domestic industry for the purpose of present

investigation.

• X )

[

—

1 1

DETERMINATION OF AUTHORITY AGAINST IMPORT FROM

CHINA

13.

In the Final Findings issued on 7.12.2001 in the anti dumping

investigation concerning import of Lead Acid Batteries originating in

or exported from Japan, Korea, China and Bangladesh, the Authority

had determined that the dumping margin for the exports of industrial

lead acid batteries made by M/s Shenyang Matsushita Storage

Battery Co. (SLMB) and M/s BB Battery Co. Ltd., China were

negative. Accordingly, no anti dumping duty was recommended on

the exports of industrial lead acid batteries manufactured by them

and exported through their trading companies. M/s Shenyang

Matsushita Storage Battery Co. (SLMB) is exporting to India through

M/s Panasonic Industrial Asia Pte. Ltd., Singapore and M/s BB

Battery Co. Ltd., is exporting to India through trading company, M/s

National Trading Ltd., Hong Kong.

Exports made by these

companies of the industrial lead acid batteries manufactured by the

Chinese manufacturers mentioned above, will continue to be covered

by the recommendations made in the Final Findings cited above.

DUMPING & EXAMINATION

OF CLAIMS

MADE ON

NORMAL VALUE & EXPORT PRICES

14.

Under Section 9A(1)©, normal value in relation to an article

means:

(i)

The comparable price, in the ordinary course of trade, for the

like article when meant for consumption in the exporting country

or territory as determined in accordance with the rules made

under sub-section(6); or

(ii)

when there are no sales of the like article in the ordinary course

of trade in the domestic market of the exporting country or

territory, or when because of the particular market situation or

low volume of the 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 said article in the country

of origin along with reasonable addition for administrative,

selling and general costs, and for profits, as determined in

accordance with the rules made under sub-section (6);

15.

The Authority sent questionnaires to all the known exporters for

the purpose of determination of normal value in accordance with

Section 9A(1) © of the Custom Tariff Act. The Authority makes the

following observation on the submissions made by the exporters in

this regard which are given below:-

M/s CSB Battery Co. Ltd.. Taiwan

In the submissions made before the Authority, no details

regarding the general information asked for in the Exporters

Questionnaire, has been given by the exporter. The transaction-wise

details of the sale in the home market of all types of models of lead

acid batteries, are required to be given, whereas the exporter has

given details of the few transactions only. The information given in

Appendix 3 also is not in the prescribed format.

No information

regarding Appendices 4 to 10 has been given. Also the financial

statements for the complete period of investigation have not been

given alongwith the submissions. The requirement of giving non-

confidential summary for being placed in the Public File has also not

been complied with.

M/s Pilot Battery Co. Ltd., Taiwan

M/s Pilot Battery Co. Ltd., is manufacturing and exporting only

the industrial lead acid batteries. The general information required to

be given as per Part A to H of the Exporters Questionnaire, has not

been furnished in the submissions made by the exporter to the

Authority. The transaction wise details of the sales in the home

market, required to be given in Appendix I, have not been furnished.

The details regarding exports to India given in Appendix II are not

complete as the technical specifications of the models exported and

other details have not been clearly spelt out. The information given in

THE GAZETTE OFINDIA: EXTRAORDINARY

[PART I—SEC. 1]

Appendix III is also incomplete and does not reconcile with the

information given in Appendix 7. The basis for information given in

Appendix 4 and 5 has not been clarified and also the information is

only for one type of battery whereas as per the own admission of the

exporter, 20 different sizes have been exported to India. The exporter

is required to give complete information for all types and models of

lead acid batteries being manufactured and sold by them.

information has been given regarding the Appendices 8 to 10. Also

the copies of financial statements for the preceding years and the

period of investigation have not been furnished. The requirement of

giving non-confidential summary for being placed in the Public File

has also not been complied with.

M/s Taiwan Yuasa Battery Co. Ltd.

In their submissions made to the Authority, the exporter has

given details regarding total quantity and sales amount in last three

years, cost of NP batteries and copy of invoices relating to exports to

India in 2001. The information required to be given as per the

Exporter's Questionnaire, in the prescribed format, has not been

given. Also, non confidential summary of the submissions made to

be placed on the Public File, has not been given.

16.

BEST INFORMATION AVAILABLE: In the Anti Dumping

Rules, Rule 6 relating to Principles Governing Investigations

mentions that if an interested party does not provide necessary

information within a reasonable period, the Designated Authority may

record its finding on the basis of the facts available with it. Further,

Rule 7 provides that the information submitted on confidential basis is

to be accompanied by a non-confidential summary. This was clearly

mentioned in the covering letter sent to the exporters asking for the

information in the prescribed questionnaire that the confidential

information submitted must be accompanied by non-confidential

summary or if it is not susceptible to summarization, a statement of

the reasons why summarization is not possible.

17.

In view of the incomplete submissions made by the exporters

from subject countries, the Authority has decided not to take into

account the information submitted by exporters on normal value and

export prices for the purpose of preliminary findings. The Authority

has decided to use information given by domestic industry on the

constructed cost of production as the best information available for

the purpose of assessing normal value in Hong Kong, Singapore and

Taiwan, for the purpose of preliminary findings.

Also information

given on export prices and adjustments compiled by domestic

industry has been used at this stage.

DUMPING MARGIN

18.

As there is a vide variety of models and types of batteries,

these need to be brought into a common denominator for the purpose

of calculation and comparison. As mentioned in the initiation

notification and also as stated above, there is a direct co-relation

between power, lead content and weight of the battery which also

gets reflected in terms of value or price.

Further, the direct co-

relation between the lead content and weight of the battery and its

associated costs and prices is also quite significant. The Authority

has, therefore, decided to denote the normal value as well as the

export price in terms of weight of the batteries for the purpose of their

comparison and arriving at a dumping margin. The dumping margin

for all the exporters and manufacturers of each country separately for

industrial batteries, automotive maintenance free (MF) sealed

batteries, automotive other than maintenance free (NMF) dry

batteries and motorcycle batteries have been worked out separately

which are given in the table below. Wherever a particular type of

battery is not being exported or is not identifiable in the export data,

dumping margin of the other type has been used as a proxy for that

type as well.

Name of country

Singapore

Hong Kong

Taiwan

Type of battery

1. Industrial

2. Automotive (NMF)

3. Automotive (MF)

4. Motorcycle

1. Industrial

2. Automotive (NMF)

3. Automotive (MF)

4. Motorcycle

1. Industrial

2. Automotive (NMF)

3. Automotive (MF)

4. Motorcycle

Dumping Margin(%)

167.28

63.43

82.90

191.39

113.57

172.41

63.69

64.76

THE GAZETTEOFINDIA: EXTRAORDINARY

[PART I—SEC. 11

INJURY

19.

Rule 11 of Anti Dumping Rules reads as follows:

"Determination of Injury:

(1)ln the case of imports from specified countries, the

designated authority shall record a further finding

that import of such article into India causes or

threatens material injury to any established industry

or materially retards the establishment of any

industry in India;

(2)The designated authority shall determine the injury

to domestic industry, threat of injury to domestic

industry, material retardation to establishment of

domestic industry and a causal link between

dumped imports and injury, taking into account all

relevant facts, including the volume

of dumped

imports, their effect on price in the domestic market

for like articles and the consequent effect of such

imports on domestic producers of such articles and

in accordance with the principles set out in

Annexure II to these rules."

CUMULATIVE ASSESSMENT OF INJURY

20.

Annexure II (iii) under Rule 11 supra further provides that "in

cases where imports of a product from more than one country are

being simultaneously subjected to Anti dumping investigation, the

Designated Authority will cumulatively assess the effect of such

imports, only when it determines that the margin of dumping

established in relation to the imports from each country is more than

two percent expressed as percentage of export price and the volume

of the imports from each country is three percent of the imports of the

like article or where the export of the individual countries less than

three percent, the imports cumulatively accounts for more than seven

percent of the imports of like article, and cumulative assessment of

the effect of imports is appropriate in light of the conditions of

competition between the imported article and the like domestic

articles.

21.

The Authority notes that the margin of dumping and quantum of

imports from subject countries are more than the limits prescribed

above. Cumulative assessment of the effects of imports from subject

countries

are appropriate since the export prices from these

countries were directly competing with the prices offered by the

domestic industry in the Indian market and displacing domestic

producers here.

THREAT OF INJURY

22.

Under Rule 11 supra, Annexure II, when a finding of injury is

arrived at, such finding shall involve determination of the injury to the

domestic industry, "

taking into account all relevant facts,

including the volume of dumped imports, their effect on prices in the

domestic market for like articles and the consequent effect of such

imports on domestic producers of such articles

". Further to

above, regarding threat of injury, paragraph (vii) of Annexure II of

Rules supra, reads as under:-

" (vii) A determination of a threat of material injury shall be based

on facts and not merely on allegation, conjecture or remote

possibility. The change in circumstances which would

create a situation in which the dumping would cause injury

must be clearly foreseen and imminent.

In making a

determination regarding the existence of a threat of

material injury, the designated authority shall consider,

inter alia, such factors as:

(a)

a significant rate of increase of dumped imports into

India indicating the likelihood of substantially increased

importation;

(b)

sufficient

freely

disposable, or an imminent,

substantial increase in, capacity of the exporter indicating

the likelihood of substantially increased dumped exports to

Indian market, taking into account the availability of other

export markets to absorb any additional exports;

(l(ie-tJil-?»°l- h

THE GAZETTE OF INDIA. EXTRAORDINARY

[PART I—SEC. 1]

(c)

whether imports are entering at prices that will have

a significant depressing or suppressing effect on domestic

prices, and would likely increase demand for further

imports; and

(d)

inventories of the article being investigated."

23.

In considering the effect of the dumped imports on prices, it is

considered necessary to examine whether there has been a

significant price undercutting by the dumped imports as compared

with the price of the like product in India, or whether the effect of such

imports is otherwise to depress prices to a significant degree. For the

examination of the impact on 'ta

^nestle industry in India, the

Authority considered such further indices having a bearing on the

state of industry as production, sales, stock, profitability, net sales

realisation etc.

24.

All the economic parameters affecting the domestic

industry mentioned above, such as production, capacity utilisation,

sales volume etc., have been examined. It has been observed that

more than the volume effect, it is the price effect on the dumped

imports which has caused material injury to the domestic industry

and is further causing threat of material injury. Following points have

been observed on various economic parameters:-

(i)

Whereas the volume of imports during the investigation

period has increased by almost 184% as compared with

1998-99, the production of the domestic industry has

increased by just 35% over the same period. This has led

to increase in the market share of imports from 1.42% of

the production of the domestic industry in 1998-99 to

more than 3% during the period of investigation.

(ii)

The value of import of the subject goods from subject

countries increased from less than Rs. 100 million, in

1998-99 to more than Rs. 280 miHion. As a result, the

share of import from subject countries in the total import

of subject goods in India increased from 24% in 1998-99

to 35% during the period of investigation.

(iii)

While the production of the domestic industry during the

period of investigation increased by 35% as compared

with that in 1998-99, the sales have increased only by

about 14% over the same period. This has resulted in a

lower per unit sales realisation and reduce the profitability

of domestic industry.

(iv)

The dumped imports are causing price undercutting, price

suppression and price depression in the Indian market

resulting in erosion of profitability and reduction in the

return of investment for the domestic industry.

(v)

The domestic industry has been forced to offer extended

credit in the market, resulting in increased in debtors.

(vi)

There has been significant increase in inventories of the

domestic industry showing increase of almost 40% during

the period of investigation.

25.

Apart from the injury being suffered by the domestic industry,

as discussed above, there is a threat of further injury being caused to

them on account of dumped imports.

This is evident from the

following >

I. During the period of investigation imports from subject

countries have increased at a significant rate which is

causing further threat of material injury to the domestic

industry;

II. As already discussed above, there is significant price

undercutting to the domestic industry on account of imports

from subject countries,

III. It has been alleged by the domestic industry that there are

surplus disposal capacities being held by the producers in

the subject countries. The producer-exporters who have

given reply to the questionnaire have not given information

THE GAZETTE OF INDIA. EXTRAORDINARY

[PART I—SEC. 1]

regarding their installed capacity and other details asked

for in Appendix 7 of the exporter questionnaire;

IV. It has further been alleged by the domestic industry that

manufacturers and exporters from the subject countries are

at present holding substantial surplus stocks in view of the

fact that the production had to be curtailed due to lower

domestic demand. This also could not be verified in the

absence information from the exporters in their reply to the

questionnaire;

26.

On the basis of evidence available, the Authority, therefore,

concludes that the domestic industry has suffered material injury and

is facing further threat of material injury on account of the dumped

imports of subject goods from subject countries.

CAUSAL LINK

27.

In determining whether injury to the domestic industry was

caused by the dumped import, the Authority has taken into account

the factor that it is the dumped import at dumped prices which has

forced the domestic industry to reduce its prices. Therefore, the

causal link between the dumped imports of subject goods from

subject countries and injury suffered and threat of injury being faced

by the domestic industry is clear. The Authority therefore concludes

that there is a causal link between the dumping of subject goods from

the subject countries, injury suffered and threat of injury being faced

by the domestic industry during the period of investigation.

INDIAN INDUSTRY'S INTEREST

28.

The purpose of anti dumping duties in general is to eliminate

dumping which is causing injury to the domestic industry and to re-

establish a situation of open and fair competition in the Indian market

which is in the general interest of the country.

29.

The Authority recognises that the imposition of anti dumping

duties might affect the price levels of the products in the domestic

market. However, fair competition on the Indian market will not be

reduced by the anti dumping measures. On the contrary, imposition

of anti dumping measures would remove the unfair advantages

gained by dumping practices, would prevent the decline of the

domestic industry and help maintain availability of wider choice to the

consumers of subject goods. The Authority notes that the imposition

of anti dumping measures would not restrict imports from subject

countries in any way, and therefore, would not affect the availability of

the product to the consumers. The consumers could still maintain

two or even more sources of supply.

CONCLUSIONS

30.

The Authority has, after considering the foregoing, come to the

conclusion that:

(i)

Lead Acid Batteries exported to India from Taiwan,

Singapore and Hong Kong are below its normal value;

(ii)

the Indian industry has suffered material injury and is

further being threatened with material injury;

(iii)

the injury has been caused by the dumped imports from

Taiwan, Singapore and Hong Kong.

31.

The Authority considers it necessary to impose anti dumping

duty provisionally, pending final determination, on all imports of lead

acid batteries from subject countries in order to remove the injury to

the domestic industry. The margin of dumping for known exporters

and subject countries determined by the Authority are indicated in the

paragraphs above.

32.. Accordingly, the Authority recommends that provisional anti

dumping duties as set out below be imposed from the date of

notification to be issued in this regard by the Central Government on

all imports of lead acid batteries falling under customs code 8507

originating in or exported from subject countries pending final

determination subject to observations made in para 13 above. For

the purpose of calculation of anti dumping duty, the Authority has

converted the normal value and the export price calculated per kg

weight of the dry battery in the case of automotive batteries other

than the maintenance free batteries and per kg of gross weight of the

TOE

GAZETTE OF INDIA: EXTRAORDINARY

(PART I—SEC. 11

filled and sealed battery in the case of maintenance free automotive

and industrial batteries.

In case of industrial batteries, since no

evidence of imports of dry lead acid batteries is available the duties

as applicable to maintenance free sealed batteries shall apply to dry

lead acid batteries also.

The anti dumping duty shall be the

difference between the amount mentioned in column 3 and landed

value of import per kg of the battery for all exporters/manufacturers

from the countries named in column 1 of the table below:-

Name of country

Singapore

Hong Kong

Taiwan

Type of battery

(2)

1. Industrial

2. Automotive (NMF)

3. Automotive (MF)

4. Motorcycle

1. Industrial

2. Automotive (NMF)

3. Automotive (MF)

4. Motorcycle

1. Industrial

2. Automotive (NMF)

3. Automotive (MF)

4. Motorcylcle

Amount in US$ per kg

(3)

2.9548

2.1309

2.0475

3.7350

2.9548

2.1309

2.0475

3.7350

2.9548

2.1309

2.0475

3.7350

33.

Landed value of imports for the purpose shall be th

assessable value as determined by the Customs under the Custom

Act, 1962 and all duties of customs except duties under Sections *

3A, 8B, 9 and 9A of the Customs Tariff Act, 1975.

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 findings¹

b) Exporters, importers, petitioner and other interested parties

known to be concerned are being addressed separately by the

Authority, who may make known their views, within forty days

from the date of issue of finding. Any other interested party

may also make known its views within forty days from the date

of publication of these findings;

c) The authority would provide opportunity to all the interested

parties for making oral submissions which have to be rendered

thereafter in writing;

d) The Authority would conduct further verification to the extent

deemed necessary;

e) The Authority would disclose essential facts before announcing

final findings.

L.V. SAPTHAFUSHI, Designated Authority

Printed by the Manager, Oovt of India PTBM, Ring Road, Mayapuri. New Delhi-110064

and Publiihod by the Controller of Publication*, Delhi-] 10054.