DGAD Initiates Investigation on 2-EH (2-Ethyl
Hexanol) from EU, USA and Five others on Andhra
Petrochem Complaint
[Anti-dumping Initiation Notification F.No.14/24/2014-DGAD
dated 20th November 2014]
Subject: Initiation of Anti-Dumping Duty investigation
concerning imports of “2-Ethyl Hexanol” originating
in or exported from EU, Indonesia, Korea RP, Malaysia, Saudi Arabia, Chinese
Taipei and USA.
Whereas, M/s Andhra Petrochemicals Limited,
(hereinafter referred to as ‘petitioner’ or “the applicant”) has filed an
application (also referred to as petition) 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 referred to as the
Act) read with 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 AD Rules)
alleging dumping of 2-Ethyl Hexanol (hereinafter also
referred to as the subject goods or “2-EH”) originating in or exported from the
European Union, Indonesia, Korea RP, Malaysia, Saudi Arabia, Chinese Taipei and
USA (hereinafter also referred to as the subject countries/territories) and
requested for initiation of an Anti Dumping
investigations for determination of degree and extent of dumping and injury to
the domestic industry and levy of anti dumping duties
on the subject goods imported from the subject countries/territories.
A. Product
under consideration
2. The product
under consideration in this investigation is “2-Ethyl Hexanol”.
2-Ethyl Hexanol (abbreviated as 2-EH) is a basic
organic chemical. It is a fatty alcohol, clear, mobile, neutral liquid with a
characteristic odor. 2-EH is produced on a massive
scale for use in numerous applications such as solvents, flavors,
and fragrances and especially as a precursor for production of other chemicals
such as emollients and plasticizers. Main application of 2-Ethyl Hexanol is as a feed stock in the manufacture of low
volatility esters; the most important of it is Di-(2Ethyl hexyl) Phthalate (DOP
or DEHP). This product is classified under Customs Tariff heading no. 29051620.
However, the said Customs classification is indicative
only and in no way binding on the scope of the present investigation.
B. Like
Articles
3. The
applicant has claimed that the product under consideration, which is exported
from subject countries/territories into India, is identical to the goods
produced by the domestic industry. 2-Ethyl Hexanol
produced by the domestic industry and imported from the subject countries are
comparable in terms of essential product characteristics such as physical &
chemical characteristics, manufacturing process & technology, functions
& uses, product specifications, pricing, distribution & marketing and
tariff classification of the goods. Consumers can use, and are using the two
interchangeably. The two are technically and commercially substitutable and
hence should be treated as ‘like article’ under the AD Rules. Therefore, for
the purpose of the present investigation, the subject good produced by the
applicant in India is treated as ‘Like Article’ to the subject goods being
imported from the subject countries.
C. Domestic
Industry & Standing
4. The
application has been filed by M/s Andhra Petrochemicals Limited. The petitioner
is the sole producer of the product under consideration in the country. It is
also noted that petitioner has not imported the product under consideration,
nor are they related to an importer or exporter of the product under
consideration. Therefore, applicant satisfies the requirements of ‘standing’
under Rule 5 of the AD Rules and constitutes ‘Domestic Industry’ in terms of
Rule 2(b) of the AD Rules.
D. Subject
Countries/Territories
5. The
countries/territories involved in the present investigation are European Union,
Indonesia, Korea RP, Malaysia, Saudi Arabia, Chinese Taipei and USA.
E. Volume of
Imports and De minimus imports
6. The volume
of imports from the subject countries/territories have been examined on the
basis of published data of Directorate General Commercial Intelligence and
Statistics (DGCI&S), Govt. of India and the share of imports of each of the
subject countries/territories in total imports have been found to be above de minimus level.
F. Normal
Value
7. The
Petitioner has submitted that efforts were made to get information/evidence of
price of subject goods in the domestic markets of subject
countries/territories. However, petitioner was not able to get such
information. The petitioner has therefore, constructed the normal values for
all the subject countries/territories taking into account international raw
materials prices, best consumption norms and conversion costs of domestic
industry and a reasonable margin of profit.
G. Export Price
8. The
petitioner has estimated the export prices of the product under consideration
from the subject countries/territories based on DGCI&S published data on
volume and value of imports into India. Price adjustments have been made on
account of ocean freight, marine insurance, commission, port expenses, inland
freight expenses and bank charges on facts available basis to arrive at net
ex-works export prices for comparison with the constructed normal values at the
same level.
H. Dumping
Margin
9. The
Authority has examined the claims of the petitioner with respect to the Normal
Values and Export Prices of the subject goods being exported from or originating
in the subject counties/territories and on the basis of prima facie evidence
placed before it Authority notes that the applicant has provided sufficient
prima facie evidence that the subject goods originating in or exported from the
subject countries/territories are entering the Indian market at significantly
lower than its Normal Values, indicating that the subject goods originating in
or exported from the subject countries/territories are being dumped in India,
to justify initiation of an antidumping investigation. The dumping margins so
estimated are above de minimus and substantial.
I. Injury and
Causal Link
10. The
petitioner has claimed that they have suffered material injury and have
furnished evidence regarding injury having taken place as a result of the
alleged dumping of subject goods from subject countries/territories in terms of
increase in imports of subject goods in absolute terms, decline in production,
sales, capacity utilization, deterioration in profits, return on capital
employed and cash profit etc. The petitioner has also claimed adverse price
effects as evidenced by price suppression. The Authority considers that there
is sufficient prima facie evidence of ‘injury’ being suffered by the applicant,
caused by dumped imports of subject goods from subject countries/territories,
to justify initiation of an antidumping investigation.
J. Initiation
of Investigations
11. Since the
Authority finds that the applicant has produced sufficient prima facie evidence
of dumping of the subject goods from the subject countries/territories; injury
to the domestic industry; and causal link between the dumping and injury, the
Authority hereby initiates an investigation in terms of the Rule 5 of the said
Rules, to determine the existence, degree and effect of alleged “dumping”, if
any, and to recommend the amount of antidumping duties, which if levied would
be adequate to remove “injury” to the domestic industry.
K. Procedure
i. Period of
Investigation
12. The period
of investigation for the present investigation is from 1st April
2013 to 30th June 2014(15 months). However, the injury investigation
period will cover the periods April 2010-March 2011, April 2011 to March 2012,
April 2012 to March 2013 and the Period of Investigation (POI).
ii. Submission
of information
13. The
exporters in subject countries/territories, their governments through their
Embassies in India, and the importers and users in India known to be concerned
with the subject goods, would be addressed separately to submit relevant
information in the form and manner prescribed and to make their views known to
the Authority in the following address:
The Designated
Authority,
Ministry of
Commerce & Industry
Department of
Commerce
Directorate General
of Anti Dumping & Allied Duties
4th Floor, Jeevan Tara Building, Parliament Street
New Delhi110001
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.
iii. 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.
iv. 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 two (2) sets of each.
18. The
confidential version shall contain all information which is 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 summarization, 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 summarized 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 after accepting the need for confidentiality
of the information provided by one party, shall not disclose it to any other
party without specific authorization of the party providing such information.
v. Inspection
of Public File:
23. All
non-confidential submissions made by the interested parties shall be placed in
a public folder for inspection by other interested parties. In terms of Rule
6(7), any interested party may inspect the public file containing non- confidential
version of the evidence submitted by other interested parties.
vi. 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 it
may deem fit.