DGTR Issues Final Findings of Anti-absorption Duty
on Untreated Fumed Silica from China – No Changes in Duty
· Anti-Dumping Duty on Untreated Fumed Silica from China (US$1296 per MT) and Korea (US$ 373 per MT) for Five Years - Complainant Cabot Sanmar by Notification No. 66 /2021 -Customs (ADD) dated 11 November 2021
Case
No.: AD
(AA) – 02/2023
Product: Untreated Fumed Silica
Subject
Country: China
PR
Subject
Exporter:
Shandong Dongyue Silicone Material Co. Ltd.
Applicant: Chemplast Sanmar Limited
·
Anti-dumping
duty on Untreated
Fumed Silica from
China & Korea was imposed in Nov
2021
(valid for 5 years).
·
Applicant
alleged that the Chinese
exporter absorbed the duty
by lowering export prices, undermining the remedial effect.
·
DGTR
initiated an anti-absorption
investigation (Dec
2024), covering July
2023 – June 2024.
1.
Export
price decline:
o Export price to India fell 30.5%, while cost of sales fell only 22.7%.
o Price decline to India was steeper than to other countries (24.1%).
2.
Cost
trends:
o Raw material & utility costs
increased, but
export prices to India declined.
o Exporter did not qualify for Market Economy Treatment, so cost data not fully accepted.
3. Dumping Margin:
o Rose from 52% (original) to 109% (absorption period).
4.
Injury
Margin:
o Increased significantly, as landed price
fell by ~25%.
5.
Absorption
established:
o DGTR concluded that Shandong Dongyue
Silicone Material Co. Ltd. absorbed the anti-dumping duty.
·
Modification
of anti-dumping duty on
imports from Shandong
Dongyue Silicone Material Co. Ltd., China.
·
Duty
will be revised
upward in
line with the higher dumping & injury margins.
·
Duties
on other
exporters
(China PR & Korea RP) remain as imposed in 2021.
·
Modified
duties to continue
for 5 years from
Notification No. 66/2021-Customs (11 Nov 2021).
·
Appeals,
if any, lie before CESTAT.
Essence: The DGTR found that the Chinese exporter
deliberately reduced export prices to offset anti-dumping duties, thereby neutralising the protective effect for
Indian industry.
Hence, anti-dumping duties on this exporter will be increased/modified.
[DGTR
Final Finding Case No. AD (AA) – 02/2023 dated 11
August, 2025]