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MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

(DIRECTORATE GENERAL OF ANTI-DUMPING AND ALLIED DUTIES)

INITIATION NOTIFICATION

New Delhi, the 20th September, 2002

Subject: Initiation of Anti-Dumping investigation

concerning

imports of Ammonium Nitrate into India originating in or

exported from Russia & Iran.

NO.14/36/2002-DGAD - M/s. Gujarat Narmada Valley Fertilizers

Company Limited (GNFC), M/s. National Fertilizers Limited (NFL), and

M/s. Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL)

have filed a petition for inititation of anti dumping investigation

concerning the import of Ammonium Nitrate from Russia and Iran in

accordance with Rule 5(1) of the Customs Tariff

(Identification,

Assessment and Collection of Anti Dumping Duty on Dumped Articles

and for Determination of Injury) Rules 1995.

Tjomestic Indugtrg:-

The petition has jointly been filed by M/s. Gujarat Narmada Valley

Fertilizers Company Limited (GNFC), M/s. National Fertilizers Limited

(NFL), and M/s. Deepak Fertilizers and Petrochemicals Corporation

Limited (DFPCL) on behalf of the domestic industry. As per the evidence

available petitioners have the standing to file the case for anti dumping

investigation on behalf of domestic industry as per Rule 5 of Anti

Dumping Rules.

Product under consideration:-

The product under consideration is "Ammonium Nitrate". It is

produced in various forms such as melt, prill, crystal, granules, flakes

and lumps. The product is first produced in melt form and then it is

solidified to obtain other forms.

With regard to density, Ammonium

Nitrate is classified in two forms (i) High density Ammonium Nitrate

covering all fcrms like melt, crystals, granules, flaiccs, lump and prill

"'"3-^ilot-x

THE GAZETTE OF INDIA. EXTRAORDINARY

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whereas (ii) Low density Ammonium Nitrate is found generally in prill

form only. Both low density and high density Ammonium Nitrate are

identical products and producers can interchangeably produce the two

forms. From the producers and users point of view both the grades are

technically and commercially substitutable for one another.

It is an

inorganic chdmical and classified under chapter 31 of Customs sub-

headings 3102.30 of the Customs Tariff Act. The Custom classification

is indicative only and not binding on the scope of investigation.

Ammonium Nitrate is used in water jel/ slurry explosives, emulsion

explosives which have the following applications like open cast mining,

under ground metallifierrous mining construction industries, project etc,

where

low

density

Ammonium

Nitrate

preferred

over

granules /crystals for making Ammonium Nitrate fuel oil (ANFO) which is

used as blasting agents as well as emulsified (ANFO). Petitioners have

requested to initiate the anti dumping investigation against the product

under consideration irrespective of the types/grades under which they

are being imported.

Countries involved: -

The countries involved in present investigation are Russia and Iran

(hereinafter referred to as subject countries)

Like articles: -

The petitioners have claimed that the goods produced by them are

"like articles" to the goods originating in or exported from the subject

countries. The Ammonium Nitrate produced by the domestic industry

and imports from Iran and Russia are comparable, technically and

commercially substitutable in terms of characteristics such as physical

and chemical cbarar.teristies, manufacturing process and technology,

functions and uses, product specifications, pricing, distribution and

marketing, and tariff classification of the goods.

Therefore, for the

purpose of investigation the Ammonium Nitrate produced by the

petitioner is being treated as like product of Ammonium Nitrate

(hereinafter referred to as subject goods) imported from subject countries

within the meaning of the Anti Dumping Rules.

Normal Value:-

The Authority notes that the petitioner has claimed normal value of

subject goods in Russia on the basis of constructed cost of production

with appropriate adjustments treating Russia as non-market economy.

The Authority proposes to examine the claim of the petitioner in the light

of Para 7 and .8 of Annexuie I of Anti Dumping Rules, as amended. The

Authority has prima-facie considered the normal value of subject goods

in Russia and Iran, on the basis of constructed cost ol production ns

made available by the petitioner.

Sufficient prima-facie evidence has

been presented to the Designated Authority with regard to the normal

value of the subject goods in subject countries.

Export Pi fee.-

The export price has been claimed on the basis of data obtained

from Director General Commercial Intelligence and Statistics, Kolkata

and compiled from secondary sources. Price adjustments have been

claimed on account of Ocean freight,

marine insurance,

inland

transportation in the country of exports, port handling and port charges,

commissions etc to arrive at the net export price. There is sufficient,

evidence of export price and the adjustments claimed for the subject

goods from the subject countries.

Dumping margin.

There is sufficient evidence that the normal value of the subject

goods in the subject countries is significantly higher than the net export

price indicating prima-facie that the subject goods are being dumped by

the exporters from the subject countries.

Injury and Causal Link:-

The petitioners have furnished evidence regarding the injury

having taken place as a result of the alleged dumping in the form of fall

in their market share because of increased volume of dumped imports,

decline in sales volume and utilisation of capacity, lost sales and

substantial decline in profitability for the domestic industries. There is

sufficient prima-facie evidence of the material injury being suffered by

the petitioner caused by dumped imports from subject countries.

Initiation of Anti-Dumping investigation: -

10.

The Authority in view of the foregoing paragraphs, initiates anti-

dumping investigation into the existence, degree and effect of alleged

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

countries.

Period of investigation:-

J1.

The period of investigation for the purpose of present investigation

is 1^st April 2001 to 30^ June 2002.

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THE GAZEITK OF INDIA FXTRAORDINARY

[PARI I—SKC. H

Submission of information:-

12.

The exporters and importers known to be concerned and domestic

industry are being informed separately to enable them to file all

information relevant in the form and manner prescribed. Any other

party interested to participate in the present investigation may write to:

The Designated Authority

(Directorate General of Anti-Dumping & Allied Duties)

Government of India

Ministry of Commerce & Industry

Udyog Bhavan, New Delhi 110011.

Time limit:-

13.

Any information relating to this investigation should be sent in

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

40 days from the date of publication of this notification.

If no

information is received within the prescribed time limit or the

information" "received is incomplete, the Authority may record their

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

the Rules supra.

INSPECTION OF PUBLIC FILE:-

14.

In terms of rule 6(7) any interested party may inspect the public

file containing non-confidential versions of the evidence submitted by

other interested parties.

15.

All interested parties shall provide a confidential summary in

terms of Rule 7 (2), for the confidential information provided as per Rule

7 (1) of the Rules supra.

16.

In case any interested party refuses access to and 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 Governments as deemed fit.

L. V SAPTHARISHI, Designated Authority

I'nntcd by the Manager, Uovt of India Press, Ring Road, Mayapun, New Delhi-110064

and Published by the Controller of Publications, Delhi-] 100J4