China Starts Review of Anti-dumping Duty on Sulfamethozazole from India on Request for Extension by Local Industry

The Ministry of Commerce (MOFCOM) released its Announcement No. 48 of 2007 on June 15, 2007, deciding to levy anti-dumping duties on imported sulfamethoxazole originated from India, and the period of which is 5 years since June 16, 2007.

The Ministry of Commerce released its Announcement No. 85 of 2011 on December 16, 2011, stating that the anti-dumping measures against imported sulfamethoxazole Originated from India would be terminated on June 16, 2012. According to the Regulations on Anti-dumping of the People’s Republic of China, if a review determines that the termination of the anti-dumping duties may result in the continuation or recurrence of the dumping and injury, the time limit for the levy of anti-dumping duties may reasonably be extended. Domestic industry or natural person, legal person or relevant organizations that represent domestic industry could submit petition on final review to the Ministry of Commerce 60 days prior to the termination date.

MOFCOM received on March 30, 2012 petition for final review on i anti-dumping measures formally submitted , on behalf of the domestic sulfamethoxazole industry, by Shouguang Fukang Pharmaceutics Co., Ltd.. According to the petition, the termination of the anti-dumping measures against imported sulfamethoxazole originated from India may result in the continuation of the dumping in the Chinese mainland and the recurrence of injury to the Chinese mainland’s sulfamethoxazole industry and therefore they petition for MOFCOM’s arbitration to maintain the anti-dumping measures against imported sulfamethoxazole originated from India.

In accordance with the Anti-dumping Regulations of the People’s Republic of China, MOFCOM reviewed the qualifications of the petitioners, the investigated products, like products in the Chinese mainland, import volume of the investigated products during the implementation of the anti-dumping measures, the possibility of the continuation as well as the recurrence of the dumping and injury. Evidence provided by the petitioners suggests that the aggregate sulfamethoxazole output of the petitioners took up more than 50% of the total output of like products in the Chinese mainland in 2011, which accords with the provisions on industry and industry representation in Article 11, Article 13 and Article 17 of the Regulations on Anti-dumping of the People’s Republic of China. Therefore, the petitioners are eligible to submit a petition on behalf of the Chinese mainland industry. The investigating authority considered that the claim and the prima facie evidence submitted by the petitioners were in compliance with the requirements for filing for the final review.

In line with Article 48 of the Regulations on Anti-dumping of the People’s Republic of China, MOFCOM decided to conduct final review on anti-dumping measures imposed on imports of sulfamethoxazole from India as from June 15, 2012, and it hereby makes announcement as the following:

I.     Extension of the anti-dumping measures

According to the proposal of MOFCOM, the Customs Tariff Commission of the State Council decided to continue to levy anti-dumping duties on imported sulfamethoxazole originated from India in accordance with the anti-dumping tax scope and tax rate released in Announcement No. 48 of 2007 of MOFCOM.

II.   The period of review

Concerning the review, the period of anti-dumping investigation was from January 1, 2011 to December 31, and the period of injury investigation was from January 1, 2007 to December 31, 2011.

III. The scope of reviewed products

The scope of the products under the review is the same with as that subject under the anti-dumping measures announced in Announcement No. 48 of 2007. The tariff line of the investigated product is 29350030.

IV.  Content of the review

Content of the review is the possibility of the continuation or recurrence of the dumping and injury caused by the termination of anti-dumping measures against imported sulfamethoxazole originated from India

V.    Procedures of the review

1.    Registration for responding

Any interested parties can submit application for responding in the review within 20 days after release of this announcement, register with MOFCOM Bureau of Fair Trade for Imports and Exports, and the exporter or producer from the said countries shall supply with the volume and value of the investigated products exported to China during the period of investigation. The Reference Format for Responding to Anti-dumping Investigation can be downloaded from the Public Notice section at the Bureau of Fair Trade for Imports and Exports subsite (http://gpj.mofcom.gov.cn.).

The interested party for responding to the industry injury investigation shall, within 20 days after the promulgation of this announcement, register with MOFCOM Bureau of Industry Injury Investigation, and shall supply to the Ministry of Commerce production capacity, output, inventory, plans for expansion and construction. The Registration Form for Industry Injury Investigation Responding can be downloaded at www.cacs.gov.cn.

2.    None registration for responding

Any interested party fails to register for responding to the investigation within the time limit, MOFCOM shall have the right to reject relevant materials submitted by the party, and make a ruling based on collected facts and best information available.

3.    Rights of interested parties

If any interested party has objections regarding the scope of this investigated product, qualifications of the applicants, investigated country ( or region) and other related issues, they can submit written comments to MOFCOM within 20 days as from the promulgation of this announcement.

Any interested party has access to the non-confidential text of the application submitted by the applicants in the anti-dumping public information search room of MOFCOM.

4.    Questionnaire

In order to obtain information for the investigation, MOFCOM will distribute questionnaires to interested parties. Dumping questionnaire is accessible at the Bureau of Fair Trade for Imports and Exports subsite (http://gpj.mofcom.gov.cn.). Relevant information of injury questionnaires is accessible at www.cacs.gov.cn.The response should be submitted in accordance with the time and method stated in the questionnaire.

5.    Hearing

Any interested party may submit, in accordance with the provisions of the Provisional Rules on Hearing in Anti-dumping Investigation and the Rules on Hearing of Industry Injury Investigation of MOFCOM, a written petition to hold a hearing, and MOFCOM, as it deems necessary, may also take the initiative to hold a hearing.

6.    On-site verification

MOFCOM will, as it deems necessary, send staff on domestic and overseas trips for on-site verification. All materials submitted by any interested party should contain a statement agreeing to verification, and MOFCOM will inform relevant countries, regions and enterprises in advance.

7.    Time limit for the review

The review will starts on June 15, 2012, and end, in normal cirmstances, by June 15, 2013.

VI.  Non-cooperation

According to Article 21 of the Regulations on Anti-dumping of the People’s Republic of China, any interested party shall truthfully provide relevant information and materials when the investigating authority conducts an investigation. If any interested party fails to provide true information, or fails to provide necessary information within a reasonable time period, or seriously obstructs investigation through other means, the investigating authority can make a ruling based on collected facts and best information available.

VII.     Contacts

Bureau of Fair Trade for Imports and Exports, Ministry of Commerce:

Add: No 2 of Dong Chang’an Avenue

Code: 100731

Contact Persons: Chen Rui, Li Guogang

Tel: (8610) 6519874065198747

Fax: (8610)65198164

Bureau of Industry Injury Investigation, Ministry of Commerce:

Add: No 2 of Dong Chang’an Avenue

Code: 100731

Contact Persons: Zheng Jiang, Xie Ying

Tel: (8610) 6519807665198180

Fax: (8610) 65197586

Appendix: Reference Format for Responding Registration of Anti-Dumping investigation