DGAD Initiates
Investigation on Measuring Tapes from Chinese Taipei, Malaysia, Thailand and Vietnam
on Complaint of FMI Ludhiana
China Already
in the Net - $2.83/kg on Steel Tapes and $1.33/Kg on Fibre
Glass
[Ref:
Initiation Notification No. 14/21/2014-DGAD dated 27.07.2015]
Subject: Anti Dumping
investigation concerning imports of “Measuring Tapes” originating in or
exported from Chinese Taipei, Malaysia, Thailand & Vietnam
No.14/21/2014-DGAD: Whereas M/s FMI Limited,
Ludhiana (hereinafter also referred to as the applicant or the petitioner) has
filed an application before the Designated Authority (hereinafter also referred
to as the Authority) in accordance with the Customs Tariff Act, 1975 as amended
from time to time (hereinafter also referred to as the Act) and the 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 also referred to as the Rules) for initiation of anti-dumping
investigation and imposition of anti dumping duty on
the imports of “Measuring Tapes” originating in or exported from Chinese
Taipei, Malaysia, Thailand & Vietnam (hereinafter also referred to as
the subject countries).
2. And whereas, the Authority finds that sufficient
prima facie evidence of dumping of the subject goods, originating in or
exported from the subject countries; injury to the domestic industry and causal
link between the alleged dumping and injury exist to justify initiation of an
anti-dumping investigation and, therefore, the Authority hereby initiates an investigation
into the alleged dumping, and consequent injury to the domestic industry in terms
of Rule 5 of the Rules, to determine the existence, degree and effect of
alleged dumping and to recommend the amount of antidumping duty, which if
levied, would be adequate to remove the ‘injury’ to the domestic industry.
Domestic Industry & Standing
3. The application has been filed by M/s FMI
Limited, Ludhiana as domestic industry of the product under consideration. As
per the application, there are a number of other producers of the subject goods
in India like Freemans Measures Pvt Limited, Klas Tape Co., Venus Industrial Corpn.,
Ambika Overseas and New Wave Industries. All these
producers have extended support to the petition in writing. As per the evidence
available on record, the production of the applicant accounts for major
proportion of the total domestic production of the subject goods. The
Authority, therefore, determines that the applicant constitutes domestic
industry within the meaning of Rule 2 (b) and the application satisfies the
criteria of standing in terms of Rule 5 (3) of the Rules supra.
Product under consideration
4. The product under consideration is
"Measuring Tapes”. All type of steel measuring tapes and fibre glass measuring tapes are the subject matter of the
present petition. These are generally used for measuring the length, breadth
etc. of an object. These are mostly used by foreman, mason, carpainter,
forestry departments and tailors etc. Measuring Tapes are manufactured from
tempered high quality carbon steel blade, phosphated
and coated with special enamel to withstand corrosion and rust. Measuring tapes
are used for: -
a. high precision professional jobs;
b. measuring depth, width, or length of an object;
c. contraction and surveys.
5. In technical terms, measuring tapes are defined
in terms of length and width of a tape, raw material used, i.e., steel or fibre glass, and finally precision with which dimensions
are marked on the tape. These are classified under Chapter 90 of the Customs
Tariff Act under sub-headings 9017, 9017.80, 9017.8001, 9017.90. The applicant
has stated that subject goods are being imported under above-mentioned
sub-headings. The Custom classification, however, is indicative only and not
binding on the scope of investigation.
Like Article
6. The applicant has claimed that the subject goods
being produced by the domestic industry are identical to the subject goods
being dumped into India from the subject countries. The applicant has claimed
that the subject goods produced by the applicant and imported from the subject
countries are having comparable characteristics in terms of parameters such as physical
& chemical characteristics, manufacturing process & technology, functions
& uses, product specifications, pricing, distribution & marketing and
tariff classification of the goods. The two are technically and commercially
substitutable and hence should be treated as ‘like article’ under the Rules.
Therefore, for the purpose of the present investigation, the subject goods
produced by the applicant in India are being treated as ‘Like Article’ to the
subject goods being imported from the subject countries.
Subject Countries
7. The subject countries in the present
investigation are Chinese Taipei, Malaysia, Thailand and Vietnam.
Normal Value
8. The applicant has claimed that they made efforts
to get information about the price at which these items are being traded in the
domestic markets of the subject countries. The applicant has further claimed
that they have not been able to procure any such information or reasonable
evidence of price prevailing in the domestic markets of the subject countries which
are market economy countries. The applicant has, thus, constructed normal value
for determination of normal value on the basis of cost of production in India
duly adjusted, except power cost for which prices have been collected for the
individual countries from the source United States Energy Information
Administration, Monthly Energy Review, May 2010. The normal value has been
claimed for Steel and Fibre Glass Tapes separately
owing to significant cost and price difference between the two types. Further,
the major raw material used for production of the two types is also different.
Export Price
9. The applicant has determined the export prices
based on IBIS import data to assess the volume and value of subject import in
India. The export prices have been adjusted for ocean freight, marine
insurance, bank charges, commission, port and inland freight expenses.
Dumping Margin
10. The normal values and the export prices have
been compared at ex-factory level, which show significant dumping margin in
respect of the subject countries. There is sufficient prima facie evidence that
the normal values of the subject goods in the subject countries are significantly
higher than the ex-factory export prices, indicating, prima facie, that the
subject goods are being dumped into the Indian market by the exporters from the
subject countries.
There is sufficient evidence of the significant
dumping margin to justify initiation of antidumping investigation.
Injury and Causal Link
11. The applicant has claimed that domestic industry
has suffered material injury from dumped imports from the subject countries.
The demand for the product has increased over the injury period. Subject
imports have increased in absolute terms and relative to production and
consumption in India. The imports are undercutting the domestic prices and the
imports have suppressed the domestic prices to a significant level and have
thereafter depressed the domestic prices. With regard to consequent impact of
the imports on the domestic industry, performance of the domestic industry has
deteriorated in respect of parameters such as profits,
return on capital employed and cash profits. The domestic industry is suffering
significant financial losses, cash losses and negative return on investments.
The petitioner has claimed that the material injury has been caused due to the
dumped imports from the subject countries. There is sufficient prima facie
evidence of injury to the domestic industry caused by dumped imports from
subject countries to justify initiation of an anti-dumping investigation.
Period of Investigation (POI)
12. The Period of Investigation (POI) determined by
the Authority is from April 2014 to March 2015. The injury investigation period
will, however, cover the periods 2011-12, 2012- 13, 2013-14 and the Period of
Investigation.
Submission of Information
13. The exporters in the subject countries, their
Governments through their Embassies in India, the importers and users in India
known to be concerned 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 Authority at the following address: The Designated
Authority Directorate General of Anti-Dumping and Allied Duties Ministry of
Commerce and Industry Department of Commerce 4th Floor, Jeewan
Tara Building, 5, Parliament Street, New Delhi 14. Any other interested party
may also make its submissions relevant to the investigation in the prescribed
form and manner within the time limit set out below. Any party making any confidential
submission before the Authority is required to make a non-confidential version of
the same available to the other parties.
Time Limit
15. All known interested parties, whose addresses
are available, would be advised through a letter to file questionnaire
responses in the form and manner prescribed and to offer their comments in
writing so as to reach the Authority at the address mentioned above not later than
forty days (40 Days) from the date of issuance of such letter. Any other
interested party, whose address is not available, may also submit comments/
information within 40 days from date of publication of this notification. The
information must be submitted in hard copies as well as soft copies. If no
information is received within the prescribed time limit or the information
received is incomplete, the Authority may record its findings on the basis of
the ‘facts available’ on record, in accordance with the AD Rules.
Submission of information on confidential basis
16. The parties making any submission (including
Appendices/Annexure attached thereto), before the authority including
questionnaire response, are required to file the same in two separate sets, in
case "confidentiality" is claimed on any part thereof:-
(a) one set marked as
Confidential (with title, number of pages, index, etc.), and
(b) the other set marked
as Non-Confidential (with title, number of pages, index, etc.).
17. The “confidential” or “non-confidential”
submissions must be clearly marked as “confidential” or “non-confidential” at
the top of each page. Any submission made without such marking shall be treated
as non-confidential by the Authority and the Authority shall be at liberty to
allow the other interested parties to inspect such submissions. Soft copies of
both the versions will also be required to be submitted, along with the hard
copies, in five (5) sets of each.
18. The confidential version shall contain all
information which are by nature confidential and/or
other information which the supplier of such information claims as
confidential. For information which are claimed to be confidential by nature or
the information on which confidentiality is claimed because of other reasons,
the supplier of the information is required to provide a good cause statement
along with the supplied information as to why such information can not be disclosed.
19. The non-confidential version is required to be
a replica of the confidential version with the confidential information
preferably indexed or blanked out (in case indexation is not feasible) and
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
to summary, and a statement of reasons why summarization is not possible, must
be provided to the satisfaction of the Authority.
20. 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 if 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.
21. Any submission made without a meaningful
non-confidential version thereof or without a good cause statement on the
confidentiality claim shall not be taken on record by the Authority.
22. 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
information.
Inspection of Public File
23. In terms of Rule 6(7) of the AD Rules, any
interested party may inspect the public file containing non-confidential
version of the evidence submitted by other interested parties.
Non-cooperation
24. In case where an interested 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.