THEGAZETTEOFINDfA:EyrPAORDiNARY

[PART I—SECL 1]

MINISTRY OF COMMERCE

INITIATION NOTrftCATION

New Delhi, the 14th August, 2002

Subject : Initiation of anti-dumping investigations concerning import of Vitamin-C originating in or exported from US/

and Canada

No. 14/25/2002-DGAD.— M/s. Sarabhai M. Chemicals has filed a petition before the Designated

Authority (hereinafter referred to as the Authority) in accordance with 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 alleging

dumping of Vitamin 'C originating in or exported from USA & Canada and have requested for

initiation of anti dumping investigations and levy of anti-dumping duty.

Product Involved: The product under investigation in the present case is Vitamin 'C

originating in or exported from USA and Canada. Vitamin 'C is also known as Ascorbic

Acid. The technical specifications of Vitamin 'C are based on National and International

standards such as PB93/USP23 and type 'A' coated. Vitamin 'C is an organic chemical

and is classified under Chapter 29 of Customs Tariff Act.

Vitamin 'C is classified under Customs sub-heading no.2936.27 of the CUstoms Tariff

Act, 1975 and under no. 2936.27.00 under Indian Trade Classification (based on

Harmonized Commodity Description and Coding System). The classification is however

indicative only and in no way binding on the scope of the present investigations.

Domestic Industry Standing: M/s. Sarabhai M.Chemicals is a producer of Vitamin 'C

and is petitioner who represent about 73 percent of the total Indian production.

M/s! Amoli Organics, a new entrants is other producer of Vitamin 'C in the country.

M/s. Jayant Vitamin Ltd. has suspended production long ago.

The petitioners represent a major proportion of the indlan production of Vitamin 'C in the

country and thus have the standing to file the present petition.

Countrv(ies) Involved The countries involved in tlia present investigations are USA and

Canada (referred to as subject countries hereinafter). Though the petitioners Included

Chinese Taipei(Taiwan) in the petition, it is observed that the volume of imports during

the period of investigation is lower than deminimus level and hence excluded from the

purview of this investigation.

Like Article: The petitioner has claimed that goods produced by it are like articles to the

,goods originating in or exported from the subject countries. Goods produced by the

petitioner are being treated as Like Articles to the goods imported from "the subject

countries within the meaning of the Rules.

Dumping and Dumping Margin:

Normal Value Petitioners have stated that'efforts were made to get evidence tof the

price at which the material .is being sold by the producers/traders in domestic market of

USA and Canada. They have been able to get a price list for various chemicals of a

company in USA, which includes ascorbic acid, i.e. Vitamin C also. It is noted that the

prices shown by the exporter for Vitamin C are for various grades and various packing.

However, there is very little difference in prices of various grades. Therefore, the price as

per the price list can be considered as the normal value of Vitamin C in domestic market

of USA.

With regard to Canada, the Petitioners have submitted that Canada is in the same

region/continent. There a"ie no customs barrier between Canada and USA. The prices in

domestic market of Canada would- not be different than the domestic market of USA.

Hence, the prices in domestic market of USA can be considered as prices in domestic

market of Canada also

Export Price: The petitioners have provided the import data as per Directorate General

of Commercial Intelligence and Statistics (DGCI &S), Calcutta latest available and have

requested the Authority to rely on the same. Adjustments have been claimed from the

export price on account of Ocean Freight,Marine Insurance,Commission, Inland

Transportation and Port Expenses.

There is sufficient prima facie evidence that the normal value of the product

under consideration in the subject countries and is significantly higher than the price at

which it has been exported to India, and that the exporters from USA and Canada are

dumping the subject goods in India.

i H F

. J A ^ H • j T R O r

! N D i A : E X T R A O R D I N A R Y

| P A P . T 1 — S K C .

Considering the normal value and export price, the dumping margins are significantly

higher than jhe de-minimus limits.

Injury and Causal Link: The various economic indicators relating to injury affecting the

domestic industry such as production, capacity utilisation, market share, sales volume,

profitability, price undercutting, price suppression/depression, etc. collectively and

cumulatively, indicate that the domestic Industry has suffered injury. There is sufficient

prima facie evidence that the import of product under consideration have caused

material injury to the domestic industry.

Initiation of Anti-Dumping Investigation: In view of the foregoing, the Designated

Authority initiates anti-dumping investigations to determine the existence, degree and

effect of alleged dumping of the subject goods originating in or exported from the subject

countries.

Period of Investigation: The period of investigation for the purpose of the present

investigations is 1

st April, 2001- 31st March, 2002 ( 12 months).

10.

Submission of Information: The exporters in the subject countries and the importers in

India known to the concerned are being addressed separately to submit relevant

information in the form and manner prescribed and to make their views known to the

Designated Authority, Ministry of Commerce, Directorate General of Anti dumping and

Allied Duties, Udyog Bhavan, New Delhi-110011. Any other interested party may also

make its submissions relevant to the investigation in the prescribed form and manner

within the time limit set out below.

11.

Time Limit: Any information relating to the present investigations should be sent in

writing so as to reach the Authority at the address mentioned above not later'than forty

days from the date of publication of this notification. The known exporters and importers,

who are being addressed separately, are, however, required to submit the information

within forty days from the date of letter addressed to them separately.

_J_

12.

Anlj-dumping investigations being a lima bound exercise, the Designated Auihoiity may

record its findings on the basis of facts available on record in accordance with the Rules

supra, if no response is received within the time stipulated or the information is

incomplete in any respect.

13.

Inspection of Public File: In terms of Rule 6(7), any interested party may inspect the

public file containing non-confidential version of the evidence submitted by other

interested parties.

14.

In case where an interested party refuses access to, or otherwise does not provide

necessary information within a reasonable period, or significantly impedes the

investigation, the Authority may record its findings on the basis of the facts available to it

and make such recommendations to the Central Government as deemed fit.

. L.V. SAPTHARISHI, Designated Authority

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