Dumping Investigation Initiated on Digital Offset Printing Plates
from China and Japan
[Ref: DGAD Initiation Notification F.No.14/7/2011-DGAD dated 13th June
2011]
Subject:
Initiation of anti-dumping investigation concerning imports of Digital Offset
Printing Plates originating in or exported from China PR and Japan
M/s Technova
Imaging Systems (P) Ltd. has filed an application before the Designated
Authority (hereinafter 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) 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 AD Rules) for
initiation of anti-dumping duty investigation concerning imports of “Digital Offset
Printing Plates” (hereinafter also referred to as subject goods) originating in
or exported from China PR and Japan.
Domestic Industry & Standing
2. The application has been filed by
M/s TechNova Imaging Systems (P) Ltd, Mumbai
(hereinafter referred to as the applicant) on behalf of the domestic industry.
The production of the applicant accounts for a major proportion of the total
domestic production of the like article and is more 50 % of total Indian
production. The applicant thus satisfies the requirements of Rule 2(b) and Rule
5(3) of the AD Rules.
Product under Consideration
3. The product under consideration in
the present investigation is Digital Offset Printing Plates (hereinafter
referred to as “Digital Plates” or subject goods). Digital Plates are used in
the printing industry for transferring data as an image (dot patterns or text)
onto paper or on non-absorbent substrates like tin sheets or poly films, etc.
In the printing process using digital plates, the digital workflow enables direct
transfer of image from a ‘computer to the plate’ using lasers unlike the
analogue workflow that requires an intermediary film to transfer the image.
Digital plates are made from
high-purity litho-grade aluminium coils coated with a
chemical coating. Digital plates may be either positive (non-exposed area forms
image) or negative (exposed area forms image) working plates. The coating
components, also known as ‘sensitizers’ vary for different types of plates.
Digital plates may be broadly
classified into two categories namely violet and thermal plates based on their
application. Digital plates that are exposed using visible and near-visible
light energy (violet lasers) are called violet plates. Similarly, digital
plates that are exposed using infra-red energy are called Thermal plates. In
addition, there are certain types of digital plates known as CtCP Plates (‘Computer-to-Conventional Plate’) that use
ultra violet rays for exposure and transferring image directly from the
computer to the plates. All types of digital plates in all dimensions are
covered within the scope of the product under consideration.
The subject goods fall under Tariff
Item ‘8442.5020’of the Customs Tariff. However, there have been imports of the
subject goods under other headings such as 3701.3000, 3704.0090, 3705.1000,
7606.9191 and 7606.9290 as well. Customs classifications are indicative only
and in no way binding on the scope of the present investigation.
Countries Involved
4. The present application has been
filed in respect of alleged dumping of the product under consideration from
China PR and Japan (hereinafter referred to as subject countries).
Like Goods
5. 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. The applicants have claimed that goods produced and
supplied by them and the subject goods imported into India are being
interchangeably used by the user industry.
Therefore, subject goods produced by
the applicant in India are being treated as ‘like article’ to the goods being
imported from the subject countries for the purpose of the present
investigation.
Normal Value
Japan
6. The applicant has submitted that all
possible efforts were made to get evidence of the price at which the subject
goods are being sold in the domestic market of Japan. However, the applicant
has not been able to get any evidence of actual domestic selling price in Japan
which can constitute accurate and adequate evidence for the purpose of the present
investigation. The normal value has, therefore, been determined based on
estimates of cost of production taking international raw material prices.
Accordingly, normal value has been determined based on LME prices of aluminium, consumption norms of the domestic industry,
utilities prices prevailing in Japan based on publicly available information,
other conversion costs including selling, administrative and financial expenses
as per domestic industry’s experience and a reasonable profit margin.
China Pr
7. The applicant has claimed that China
PR should be treated as a non-market economy and has determined normal value in
accordance with Para 7 and 8 of Annexure I of the AD Rules. The applicant has
claimed Constructed Normal Value based on LME prices of aluminium,
consumption norms of the domestic industry, conversion costs including selling,
administrative and financial expenses as per domestic industry’s experience and
a reasonable profit margin.
Export Price
8. The applicant has claimed export price
of the subject goods from the subject countries based on the transaction wise
import data provided by the Eximnet. Adjustments have
been claimed on account of ocean freight and marine insurance to arrive at
ex-factory export price. There is sufficient evidence of the export price for
the subject goods from the subject countries.
Dumping Margin
9. Normal value and export price have
been compared at ex-factory level, which shows significant dumping margin in
respect of each of the subject countries. It is considered that there is, prima
facie, evidence that the normal value of the subject goods in the subject
countries is significantly higher than the ex-factory export price indicating,
prima facie, that the subject goods are being dumped by exporters from the
subject countries.
Injury and Causal Link
10. The applicant has claimed that they
have suffered material injury by way of increased losses, increase in
inventories, decline in return on capital employed and cash profits, etc. The
applicant has also claimed adverse price effects as evidenced by price
depression, price suppression, price undercutting and price underselling. The
applicant has claimed that the material injury has been caused due to the
dumped imports from the subject countries. The Authority considers that there
is sufficient evidence of ‘injury’ being suffered by the applicant caused by
dumped imports from subject countries to justify initiation of an anti-dumping
investigation.
Initiation of Anti Dumping
Investigations
11. The Designated Authority, in view
of the foregoing paragraphs, holds that sufficient 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. The Authority
hereby initiates an investigation into the alleged dumping and consequent
injury to the domestic industry in terms of Rule 5 of the AD Rules, to
determine the existence, degree and effect of any alleged dumping and to
recommend the amount of anti-dumping duty, which if levied would be adequate to
remove injury to the domestic industry.
Period of Investigation (POI)
12. The Period of Investigation for the
purpose of the present investigation is 1st April 2010 to 31stMarch 2011 (12
months). However, the period for injury examination would cover periods from 1st
April 2007 to the end of the POI i.e. 2007-08, 2008-09, 2009-10 and
2010-11(POI).
Submission of Information
13. The known exporters in the subject
countries and their Government through their Embassy in India, importers and
users in India known to be concerned and the domestic industry are being
informed separately to enable them to file all relevant information in the form
and manner prescribed. Any other interested party may also make its submissions
relevant to the investigation within the time-limit set out below and write to:
The
Designated Authority,
Directorate
General of Anti Dumping& Allied Duties,
Ministry of
Commerce & Industry,
Department of
Commerce,
Room No. 243,
Udyog Bhavan,
New Delhi –
110011
Time Limit
14. Any information relating to this
investigation should be sent in writing so as to reach the Authority at the
above address not later than 40 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 40 days from the date of
the letter addressed to them separately. If no information is received within
the prescribed time limit or the information received is incomplete, the
Authority may record their findings on the basis of the ‘facts available’ on
record in accordance with the AD Rules.
Submission of Information on
Non-Confidential Basis
15. All interested parties shall
provide a non-confidential summary in terms of Rule 7(2) of the AD Rules for
the confidential information provided by them. The non-confidential version or
non-confidential summary of the confidential information should be in
sufficient detail to provide a meaningful understanding of the information to
the other interested parties. If in the opinion of the party providing
information, such information is not susceptible to summary; a statement of
reason thereof is required to be provided.
Notwithstanding anything contained in
the above paragraph, 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 a
generalized or summary form, it may disregard such information.
Inspection of Public File
16. In terms of Rule 6(7), the
Authority maintains a public file. Any interested party may inspect the public
file containing non-confidential version of the evidence submitted by other
interested parties.
Non Cooperation
17. 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 facts available and make such recommendations
to the Central Government as deemed fit.