Anti-dumping
Investigation Initiated on Pentaerythritol from
Russia on Complaint of Kanoria Chemicals
[Ref: Initiation Notification No. F.No.14/26/2012-DGAD dated 21st June 2013]
Subject: Initiation of anti-dumping investigation concerning imports of Pentaerythritol originating in or exported from Russia.
WHEREAS M/s. Kanoria Chemicals & Industries Ltd. (hereinafter
referred to as the applicant) has filed an application before the Designated Authority
(hereinafter referred to as the Authority), in accordance with the Customs
Tariff Act, 1975, as amended in 1995 (hereinafter referred to as the Act) and
Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination
of Injury) Rules, 1995, as amended from time to time (hereinafter referred to
as the Rules), alleging dumping of Pentaerythritol
(hereinafter referred to as the subject goods), originating in or exported from
Russia (hereinafter referred to as the subject country), for initiation of
anti-dumping investigation and for levy of anti-dumping duties on the imports
of the subject goods, originating in or exported from the subject country.
2. AND WHEREAS, the Authority finds sufficient
prima facie evidence of dumping of the subject goods originating in or exported
from the subject country and injury to the domestic industry and causal link
between dumping and injury and hereby initiates an investigation into the
alleged dumping, and consequent injury to the domestic industry, in terms of
Rule 5 of the Anti-dumping Rules, to determine the existence, degree and effect
of the alleged dumping and to recommend the amount of anti-dumping duty, which,
if levied, would be adequate to remove the injury to the domestic industry.
Product under
Consideration
3. The product under consideration in the
present investigation is Pentaerythritol. Pentaerythritol is an organic compound. The term “erythritol” indicates the presence of four hydroxyl groups,
and the prefix “penta” indicates that there are five
carbon atoms in the molecule. As stated by the applicant, Pentaerythritol
can be produced using electrodialysis separation
technology or fractional crystallization technology. There is no difference in
the product properties produced through the two technologies. Pentaerythritol produced can be of technical grade or
nitration grade. The principal difference in the two grades is in purity,
crystal size and uniformity of crystals. Both the grades are produced out of
the same process. Pentaerythritol having purity above
98% and better crystal formation can be used in the explosive industry and
therefore, this grade has been designated as “Nitration Grade” in commercial
parlance. However, Pentaerythritol considered as “Nitration
Grade” can be used for production of Alkyd Resins and other products (where the
other grade “Technical Grade” Pentaerythritol is used).
Production process, however, largely results in production of “Technical
Grade”. Less than 2% production results in nitration grade whereas the
production of Di-Pentaerythritol is less than 0.5%.
More than 97% production is of technical grade. Further, imports are primarily
in technical grade. Di-Pentaerythritol and Pentaerythritol are two different kinds of products. Di-Pentaerythritol is beyond the scope of the product under
consideration.
4. Pentaerythritol is
mostly used in the manufacture of Alkyd Resins, Resin Esters, Plasticizers,
Printing inks, Synthetic rubber, Stabilizers for plastics, Modified drying
oils, Detonators, Explosives, Pharmaceuticals, and Core oils and Synthetic
lubricants, etc. Pentaerythritol is classified under
Chapter 29 of the Customs Tariff Act, 1975 under the Customs Code 29054200.
However, Customs classifications are indicative only and in no way binding on
the scope of the investigations.
Domestic Industry
Standing
5. The application has been filed by M/s. Kanoria Chemicals & Industries Ltd, the major producer
of the subject goods in India. The applicant has claimed that there are two
more producers of the subject goods in the country namely M/s Asian Paints
(India) Ltd (APL) and M/s Perstrop Chemicals India
Pvt Ltd (PCIL). While APL is claimed to be primarily engaged in producing the
subject goods for captive consumption purposes, PCIL is claimed to have
switched over to importing subject goods in significant volumes and closed the
production during POI. On the basis of information available, Authority notes
that the applicant company constitutes a major proportion in Indian production.
The Authority, therefore, determines that the applicant industry constitutes
domestic Industry within the meaning of the Rule 2(b) and the application
satisfies the criteria of standing in terms of Rule 5 of the anti-dumping Rules
supra.
Like Article
6. The applicant has claimed that the subject
goods, which are being dumped into India, are identical to the goods produced
by the domestic industry. There are no differences either in the technical
specifications, quality, functions or end-uses of the dumped imports and the
domestically produced subject goods. The two are technically and commercially
substitutable and hence should be treated as ‘like article’ under the Anti-dumping
Rules. Therefore, for the purpose of the present investigation, the subject goods
produced by the Indian industries are being treated as ‘Like Article’ to the
subject goods being imported from the subject country for the purpose of the
present investigation.
Country Involved
7. The country involved in the present
investigation is Russia.
Normal Value
8. The applicant has claimed that it has made
efforts to get evidence of the actual selling price of the product concerned in
the domestic market of Russia, including evidence of the price from published
sources. The applicant has claimed, however, that it has not been able to
procure any such information. In view of this, the applicant has claimed normal
value on the basis of estimates of cost of production, duly adjusted to include
selling, general & administrative costs and reasonable.
Export Price
9. The applicant has claimed export prices on
the basis of data obtained from International Business Information Services
(IBIS). The data from the same source has been taken into consideration for the
injury period including the POI. Price adjustments have been allowed on account
of ocean freight, marine insurance, commission, port expenses and bank charges
to arrive at the net ex-factory export price.
Dumping Margin
10. Based on the normal value and export price,
the applicant has determined dumping margin for the product. It is found that
the normal value of the subject goods in the subject country is significantly
higher than the net export prices, prima-facie, indicating that the subject
goods originating in or exported from the subject country are being dumped, to
justify initiation of an antidumping investigation. The dumping margins are
estimated to be above de minimis.
Injury and Causal Link
11. The applicant has furnished evidence regarding
the ‘injury’ having taken place as a result of the alleged dumping in the form
of increased volume of dumped imports, price undercutting, price suppression
and decline in profitability, return on capital employed and cash flow for the
domestic industry. There is sufficient evidence of the ‘injury’ being suffered
by the applicant caused by dumped imports from subject countries to justify initiation
of an anti-dumping investigation.
Period of Investigation
12. The Authority has considered the period of
investigation (POI) for the purpose of the present investigation is 1st January
2012 to 31st December 2012 (12 months). The injury investigation period will
however cover the periods April 2009-March 2010, April 2010-March 2011, April
2011-March 2012 and the POI.
Submission of
Information
13. The exporters in the subject country,
Government through the Embassy, importers in India known to be concerned with
this investigation and the domestic industry are being addressed separately to
submit relevant information in the form and manner prescribed and to make their
views known to the Designated Authority at the following address:
The Designated
Authority
Ministry of
Commerce & Industry
Department of
Commerce
Directorate General
of Anti-Dumping & Allied Duties (DGAD)
Room No. 240, Udyog Bhavan,
New Delhi-110011
Any other interested
party may also make it’s submissions, relevant to the
investigation, within the time limit set out below.
Time Limit
14. 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 40 (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. If
no information is received within the prescribed time limit or the submitted
information is incomplete, the Designated Authority may record its findings on
the basis of the facts available on record in accordance with the Rules. It may
be noted that no request, whatsoever, shall be entertained for extension in the
prescribed time limit.
Submission of
Information on Non-Confidential Basis
15. In case confidentiality is claimed on any part
of the questionnaire’s response/submissions, the same must be submitted in two
separate sets (a) marked as Confidential (with title, index, number of pages,
etc.) and (b) other set marked as Non- Confidential (with title, index, number
of pages, etc.). All the information supplied must be clearly marked as either
“confidential” or “non-confidential” at the top of each page.
16. Information supplied without any mark shall be
treated as non-confidential and the Authority shall be at liberty to allow the
other interested parties to inspect any such non-confidential information. Two
(2) copies each of the confidential version and the non-confidential version
must be submitted.
17. For information claimed as confidential, the
supplier of the information is required to provide a good cause statement along
with the supplied information as to why such information cannot be disclosed
and/or why summarization of such information is not possible.
18. The non-confidential version is required to be
a replica of the confidential version with the confidential information
preferably indexed or blanked out / summarized depending upon the information
on which confidentiality is claimed. The non-confidential summary must be in
sufficient detail to permit a reasonable understanding of the substance of the
information furnished on confidential basis. However, in exceptional circumstances,
party submitting the confidential information may indicate that such information
is not susceptible of summary; a statement of reasons why summarization is not
possible, must be provided to the satisfaction of the Authority.
19. The Authority may accept or reject the request
for confidentiality on examination of the nature of the information submitted.
If the Authority is satisfied that the request for confidentiality is not
warranted or the supplier of the information is either unwilling to make the
information public or to authorize its disclosure in generalized or summary form,
it may disregard such information.
20. Any submission made without a meaningful
non-confidential version thereof or without a good cause statement on the
confidentiality claim may not be taken on record by the Authority. The
Authority on being satisfied and accepting the need for confidentiality of the
information provided, shall not disclose it to any party without specific
authorization of the party providing such confidential information.
Inspection of Public
File
21. In terms of Rule 6(7), the Designated
Authority maintains a public file. Any interested party may inspect the public
file containing non-confidential version of the evidence submitted by the
interested parties.
Non-Cooperation
22. 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 treat
such interested parties as non-cooperative and record its findings on the basis
of the facts available to it and make such recommendations to the Central
Government as deemed fit.