Dumping Investigation on Stainless Steel of HR Flat from EU, US,
Korea, South Africa and Taiwan
[Ref: F. No.14/12/2010-DGAD dated 12th April 2010]
Sub: Initiation of Anti
Dumping investigation on imports of Hot Rolled Flat Products of Stainless Steel
originating in or exported from European Union, Korea RP, South Africa, Taiwan
and USA.
JSL Limited, New Delhi have filed an application
before the Designated Authority (herein after referred to as the Authority) in
accordance with the Customs Tariff Act, 1975 as amended in 1995 and Customs
Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on
dumped articles and for determination of injury) Rules, 1995 (herein after
referred to as Rules) for initiation of anti dumping investigation concerning
alleged dumping of Hot Rolled Flat Products of Stainless Steel of ASTM Grade 304
with all its variants (hereinafter referred to as subject goods) originating in
or exported from European Union, Korea, South Africa, Taiwan and USA
(hereinafter referred to as subject countries) .
2. AND
WHEREAS, the Authority finds that sufficient prima facie evidence of dumping of
subject goods by the subject countries, injury to the domestic industry and
causal link between the dumping and injury exist, the Authority hereby
initiates an investigation into the alleged dumping, and consequential injury to
the domestic industry in terms of the Rules 5 of the said 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
3. The
application has been filed by JSL Limited, New Delhi. This producer has
provided information relevant to the present investigation. The production of
the applicant company constitutes more than 50 % of total Indian production.
The Authority has determined that (a) production of the applicant company
constitutes a major proportion in Indian production and ;
(b) the application has been made by or on behalf of the domestic industry.
4. The
Authority after examining the above, prima facie determines that the petitioner
constitutes domestic Industry within the meaning of the rule 2(b) read with
2(d) and the application satisfies the criteria of standing in terms of Rule 5
of the Rules .
Product under consideration
5. The
product under investigation in the present case is Hot Rolled Flat Products of
Stainless Steel of ASTM Grade 304 with all its variants including products of
equivalent specifications in other standards like UNS, IS, Chinese DIN, JIS,
BIS, EN. Etc.
6. The
subject goods are used for manufacture of process equipments, re-rolling,
reactor vessels, material handing equipments, railways, pipes & tubes,
automotive components, rolled formed sections, architecture, building &
construction, industrial fabrication etc.
7. The
subject goods is classified under Chapter Heading 7219.11, 7219.12, 7219.13,
7219.14, 7219.21, 7219.22, 7219.23, 7219.24, 7220.11 and 7220.12 of Customs
Tariff Act. The classification is however only indicative and in no way binding
on the scope of the present investigation.
Like Articles
8. The
applicant has claimed that the goods produced by them are “like articles” to
the goods originating in or exported from the subject countries. The subject
goods produced by the domestic industry and imports from subject countries are
comparable, technically and commercially substitutable in terms of physical,
technical specifications, functions or end-uses. Therefore, for the purpose of
investigation, the Hot Rolled Flat Products of Stainless Steel produced by the applicant
are being treated as like articles of Hot Rolled Flat Products of
Stainless Steel imported from subject countries within the meaning of the Anti
Dumping Rules.
Countries involved
9. The
countries involved in the present investigation are European Union, Korea RP,
South Africa, Taiwan and USA.
Dumping
Normal Value
10. The
petitioner has submitted details of the published prices of the subject goods
from MEPS Stainless Steel Review for EU, Korea RP, Taiwan & USA. It is also
submitted that the prices of plates are little higher than the prices of coils
but the domestic industry on conservative basis has taken the coils prices for
the determination of normal value in each of the subject countries (except
South Africa).
In the absence of the availability of published
information for South Africa, the normal value for South Africa has been
constructed on the basis of the cost incurred by the domestic industry after
adding reasonable amount of profit @5%.
11. For the
purpose of initiation, the Authority has prima-facie considered the normal
value of subject goods in subject countries as claimed by the petitioner.
Export Price
12. Since
import data from DGCI&S is not available for the whole Period of
Investigation, as stated by the petitioner, the export prices have been claimed
on the basis of transaction-wise import data obtained from Cybex
Exim Solutions Pvt. Limited. Adjustments have been
claimed on ocean freight, marine insurance, port handling and commission to
arrive at the export price at ex-factory level. The Authority notes that there
is sufficient prima facie evidence of the net export price for the subject
goods from the subject countries.
Dumping Margin
13. There is
sufficient evidence that the normal values of the subject goods in the subject
countries are significantly higher than the net export prices indicating
prima-facie that the subject goods are being dumped by the exporters from the
subject countries. Normal value and export price have been compared at
ex-factory level which shows significant dumping margin in respect of subject
countries.
Injury and Causal Link
14. The
petitioner has furnished information on various parameters relating to material
injury. The applicant has furnished evidence regarding the injury having taken place
as a result of the alleged dumping in the form of fall in capacity utilization,
return on capital employed and profitability because of increased volume of
dumped imports, price undercutting and price underselling on account of dumped
imports from subject countries. There is sufficient prima-facie evidence of the
material injury being suffered by the domestic industry and the same being
caused by dumped imports from subject countries.
Period of Investigation
15. The
period of investigation (POI) is 1st April, 2008 to 30th September 2009 (18
months) for the purpose of present investigation. The injury investigation
period will however cover the periods April,2005-March,06,
April,2006–March,2007, April,2007-March,2008 and the POI.
Submission of information
16. The
exporters and importers known to be concerned and domestic industry are being
informed separately to enable them to file all information relevant in the form
and manner prescribed. Any other party interested to participate in the present
investigation may write to:
The Designated Authority
(Directorate General of Anti-Dumping &
Allied Duties)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhavan, New Delhi-110011.
Time limit
17. 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. 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 Rules supra.
Inspection of Public File
18. In terms
of rule 6(7) any interested party may inspect the public file containing non-confidential
versions of the evidence submitted by other interested parties.
19. All
interested parties shall provide a confidential and non-confidential summary in
terms of Rule 7 (2), for the confidential information provided as per Rule 7
(1) of the Rules supra.
20. In case
any interested party refuses access to and 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 Governments as
deemed fit.