MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

(DIRECTORATE GENERAL OF ANTI-DUMPING AND ALLIED DUTIES)

INITIATION NOTIFICATION

New Delhi, the 8th October, 2002

Subject: Initiation of Anti-Dumping investigation concerning imports of Caustic Soda from Chinese Taipei,

Indonesia and EU excluding France.

No. 14/39/2002-DGAD.—M/s Alkali Manufacturers Association of India (AMAI),

Delhi on behalf of the Domestic industry has filed a petition, 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 duty) Rules, 1995 before the

Designated Authority (hereinafter referred to as the Authority) alleging

dumping of Caustic Soda from Chinese Taipei, Indonesia and EU

excluding France (hereinafter called subject countries) and has requested

for Anti-Dumping investigation and levy of Anti-Dumping Duties

retrospectively from the date of initiation of investigation.

!•

Domestic Industry:- The petition has been filed by M/s. Alkali

Manufactures Association of India (AMAI), Delhi on behalf of the

domestic industry. The Association represents most of all the domestic

manufacturers of Caustic Soda in India.

The petition has been

expressedly been supported by the following domestic producers, i.e.

M/s. DCW Ltd., Mumbai, M/s. Gujarat Alkalies & Chemicals Ltd.,

Baroda, M/s. Search Chem. Industries Ltd., Mumbai, M/s. Grasim

Industries Ltd., Nagada (MP), M/s. SIEL Chemical Complex, Punjab,

M/s. Bihar Caustic & Chemicals Ltd., Jharkhand, M/s. Jayshree

Chemicals Ltd., Orissa and M/s. Andhra Sugars Ltd., Tanaku,. These

petitioners companies represents 40.09% of the subject good under

production and with support of M/s. Indian Petrochemicals Corporation

Ltd., Vadodara, M/s. Standard Alkali, Mumbai, and M/s. DCM Shriram

Consolidated Ltd., New Delhi they represent 55.67%. 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.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC, 1]

Product under consideration:- The product under consideration

is known as Sodium Hydroxide Commonly known as Caustic Soda

(hereinafter referred to as subject goods). It is chemically known as

NAOH.. It is an inorganic chemical and is soapy, strongly alkaline

odorless chemical. Caustic Soda finds application in various fields like

manufacture of pulp and paper, newsprint, viscose yarn, staple fiber,

aluminum, cotton, and laundry soaps, detergent, dyestuff drugs and

Pharmaceuticals, vanaspati, petroleum refining, etc. Caustic Soda is

available in two forms i.e. Lye and solids. The present investigation

covers all forms of Caustic soda. Caustic Soda is classified under chapter

28 of the customs sub-headings 2815.11 and 2815.12 of custom tariff

Act, 1975. The classification is, however indicative only and is in no way

binding on the scope of the present investigation.

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 the present

investigation are Chinese Taipei, Indonesia and EU excluding France

(hereinafter referred to as subject countries).

Like articles: Caustic Soda produced by the domestic industries

and imported from subject countries are comparable in terms of

characteristic functions, uses, product specification, pricing, distribution

and marketing, and tariff classification of the goods.

The two are

technically

and

commercially

substitutable

and it

used

interchangeably.

Therefore, for the purpose of investigation the Caustic

Soda produced by the petitioner is being treated as like product of

Caustic Soda (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 Chinese Taipei, Indonesia, and EU

excluding France on the basis of information provided by the petitioner

form leading International journal, i.e., Chlor Alkali. Chlor Alkali reports

the prices of Caustic Soda in the domestic market in Chinese Taipei,

Indonesia, and EU excluding France.

Thus the authority has prHma

facie, consider the normal value of the subject goods in subject countries

on the basis of constructed cost of production as made available by the

petitioner and it has been considered by the Authority for the purpose of

initiation.

Export Price: 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

volurnc of dumped imports, decline in sales volume and utilisation of

capacity, lost sales and substantial decline in profitability for the

domestic industries. The Authority notes that the installed capacity and

availability of sufficiently freely disposable subject goods by the exporters

of Chinese Taipei coupled with the prevailing offer price of subject good

in India, pose a threat of material injury to the domestic industry by way

of price suppression and undercutting. There is prima-facie sufficient

evidence of the material injury being suffered by the petitioner caused by

dumped imports from subject countries.

Initiation of Anti-Dumping investigation: 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.

10.

Period of investigation:

The period of investigation for the

purpose of present investigation is 1^st January 2002 to 30^th September

2002.

11.

Submission of Information: 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

brtyog Bhwvan, New ftotfiMiOOll.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I—SEC. 1]

12.

Time limit: 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.

13.

INSPECTION OF PUBLIC FILE:

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.

14.

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.

15.

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. SAPTHAR1SHI, Designated Authority

Primed by the Manager, Govt. of India Press, Ring Road, Mayapuri, New Delhi-110064

and Published by the Controller of Publications, Delhi-] 10054