THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC. 1]

MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

INITIATION NOTIFICATION

New Delhi, the 27th August, 2002

Subject: Initiation of anti-dumping investigations concerning import of Vitamin 'E' originating in

or exported from Peoples' Republic of China.

No. 14/32/2002-OGAD.—M/s. E. Merck (India) Ltd., Mumbai, has filed a petition before the Designated

Authority (hereinafter referred to as the Authority) In accordance with the Customs Tariff (Amendment) Act,

1995 and Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles

and for Determination of Injury) Rules, 1995 alleging dumping of Vltamin-E originating in or exported from

China PR and have requested for Initiation of anti-dumping investigations and levy of anit-dumping duties.

1. Product Under Consideration:

The product under investigation in the present case is Vitamin-E.

(hereinafter referred to as subject goods). Vitamin-E, also known as

dL - Alpha- Tocopheryl, is an organic chemical, which is composed of

a group of compounds called Tocopheryl. It is first produced in its

acetate form, which is also known as Vitamin-E Acetate. This Acetate

can either be used as it is or further processed to obtain the different

types, which includes, Vitamin E-pure, Vitamin-E- animal grade (Feed

grade) 50%, Vitamin-E Pharma grade-50% and Vitamin-E compounds

or derivatives. The market for Vitamin E where the imports are

reported in huge volumes can be divided into two parts - Acetate

Grade and Feed Grade. Cost and price of feed grade is almost of half

of acetate grade as it contains 50% Vitamin-E and some additives in

small value.

Quality of Vitamin E is described in terms of its purity. Different

purity is required for different end use. The purity of the product

determines the associated cost^and prices even though costs on 100%

basis are largely similar. The present petition is against all forms of

Vitamin E, which is obtained from synthetic process except the Natural

Vitamin E.

Vitamin E is classified under customs sub heading No.2936.28 of the

customs tariff act 1975 and under 2936.2800 under Indian Trade

Classification. The feed grade of Vitamin E (used in animal compound

feed as an additive) is cleared under 2309.9010. The petitioner has

requested that the investigations be initiated against the product under

consideration irrespective of the classification under which they are

being imported. Customs classifications are indicative only and in no

way binding on the scope of the present investigations.

The petitioner has submitted the imports data from DGCI&S, Kolkata

and from the secondary sources i.e. International Business Information

Services, Mumbai though they have relied upon the data compiled by

IBIS, as it shows higher import volumes. With regard to feed grade, the

petitioner

has relied upon information compiled by IBIS for

determination of volume, value and import price as customs

classification 2309.90 is not exclusive for this product.

2. Domestic Industry Standing:

The petitioner has been filed oy M/s E. Merck (India) Ltd., Mumbai.

The petitioner has claimed that they are the sole producer of subject

goods in India. Prime facie the petitioner satisfy the criteria of standing

to file the petition on behalf of the domestic industry in terms of Rule

5(3)(a) of the Rules supra.

The petitioner therefore satisfies the standing to file the present

petition.

3. Countries Involved :

The country involved in the present investigation is China PR

(hereinafter referred to as subject country).

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I^SEC. 1]

4. Like Goods:

The petitioner has claimed that goods produced by it are like articles to

the goods originating in or exported from China PR. There is no

significant difference in the Vitamin E produced by the petitioner and

those exported from subject country. The petitioner claims that the two

are technically and commercially substitutable.

Therefore, for the

purpose of present investigation, the aoods produced by the petitioner

are being treated as Like Articles of the producx imported from the

subject country within the meaning of the Rules, supra.

5. NORMAL VALUE

The Authority notes that ttn petitioner has claimed normal value of

subject goods in PR China on the basis of constructed cost of

production with appropriate adjustments treating China as non-market

economy.

The Authority proposes to examine the claim of the

petitioner in the light of para 7 and 8 of the Annexure II of the Anti-

Dumping rules, as amended.

The Authority has prima facie

considered the normal value of subject goods in PR China on the basis

of constructed cost of production as made available by the petitioner.

6. EXPORT PRICE:

The petitioner has claimed the export price from the subject country

based on the secondary data sources, i.e. M/s International Business

Information Service, Mumbai whose data is based on the Customs

Daily List. From the data of secondary source, the petitioner has

sorted the data on the basis of description (Acetate Grade and Feed

Grade) and clubbed the transactions for the product under

consideration. Adjustments have been claimed on account of ocean

freight, marine insurance, inland transportation in the country of

exports, port handling and port charges to arrive at the Export Price at

ex-factory level.

7. DUMPING MARGIN

There is prima facie evidence that Normal VaJue of the subject goods

in the subject countries is significantly higher than the ex-factory

export price indicating prima facie that the subject goods are being

dumped by exporters from the subject country

8. INJURY AND CAUSAL LINK

Various injury parameters cited by the Petitioner suggest that

imports of subject goods from China PR have increased in absolute

terms as well as in terms of their share in total imports into the

country. The petitioner submits that the share of China PR in

demand of subject goods have increased significantly while the

share of the domestic industry has declined during the same

period. The decline in export price has directly resulted in the

decline in the landed value of imports, which are below than cost of

production. The Petitioners submit that there is a decline in the

capacity utilization and domestic sales within the proposed period

of investigation while the total demand for the product has

increased during the same period. In the feed grade there is a

decline in the selling price of the petitioner and the profitability of

the petitioner has suffered very adversely resulting into losses. The

petitioner further submits that it has suffered volume injury from

imports of Acetate grade and it has suffered volume as well as

price injury from imports of.feed grade. Thus, prima facie, the

petitioner has suffered material injury from dumped imports of

subject goods from subject country.

INITIATION OF ANTI DUMPING INVESTIGATIONS

The Designated Authority, in view of the foregoing paragraphs,

initiates anti-dumping investigations into the existence, degree and

effect of alleged dumping of the subject goods originating in or

exported from the subject country.

10.

PERIOD OF INVESTIGATION"

The Period of Investigation for the purpose of the present

investigation is 1st January 2001 to 31^st March 2002.

11.

SUBMISSION OF INFORMATION

The exporters in the subject countries and the importers in India

known to be concerned with this investigation are being addressed

separately to submit relevant information in the form and manner

prescribed and to make their views known to the Designated

Authority, Directorate General of Anti Dumping & Allied Duties,

Ministry of Commerce & Industry, Department of Commerce,

Government of India, Udyog Bhavan, New Delhi - 11 00 11.

As per Rule 6(5) of Rule supra, the Designated Authority is also

providing opportunity to the industrial users of the article under

investigation, and to representative consumer organizations who can

furnish information which is relevant to the investigation regarding

dumping, injury and causality. Any other interested party may also

make its submissions relevant to the investigation within the time limit

set out below.

THE GAZETTE OF INDIA; EXTRAORDINARY

[PART I—SEC. 1]

12.

TIME LIMIT

Any information relating to the present investigation 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 the letter addressed to them

separately. It may be noted that no request whatsoever shall be

entertained for extension in the prescribed time limit.

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. In case where an interest 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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and Published by the Controller of Publication!. Delhi-110034.