Dumping Investigation Initiated on PVC Paste Resin from China,
Japan, Korea and Others
[Ref: No. 14/36/2009-DGAD dated 3rd November 2009]
Subject: Initiation of Anti-Dumping investigation concerning imports of
‘Poly Vinyl Chloride Paste Resin’ (PVC Paste Resin) originating in or exported from
China PR, Japan, Korea RP, Malaysia, Russia, Taiwan and Thailand
M/s. Chemplast
Sanmar Limited, Chennai has filed an application
before the Designated Authority (hereinafter referred to as the Authority) in
accordance with the Customs Tariff (Amendment) Act, 1995 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 the AD Rules) alleging dumping of ‘Poly
Vinyl Chloride Paste Resin’ (PVC Paste Resin) (hereinafter referred to as the
subject goods) originating in or exported from China PR, Japan, Korea RP,
Malaysia, Russia, Taiwan and Thailand (hereinafter referred to as subject
countries) and have requested for initiation of anti-dumping investigation and
levy of anti-dumping measures.
2. The product under consideration is ‘Poly
Vinyl Chloride Paste/Emulsion Resin” also called “Emulsion PVC Resin” and
referred to as PVC paste resin (hereinafter referred to as “subject product” or
“subject goods”). There are two types of PVC resin, namely PVC Paste Resin and
PVC Suspension Resin. PVC suspension resin is excluded from the ambit and scope
of the proposed investigation. The PVC Paste Resin is produced from Vinyl
Chloride Monomer (VCM). VCM is produced using EDC, which in turn requires
chlorine as one of the major products. The subject goods is produced and sold
in the form of white/off-white powder. The properties of the product are
described in terms of K value, inherent viscosity, particle size retention,
heat loss, initial BFB etc. All grades of PVC Paste Resin are within the ambit
and scope of the investigation.
3. The product under consideration is falling under Chapter 39. The
product under consideration can be imported under the following Customs
classifications:
|
Chapter/Subheading |
Description |
|
Chapter 39 |
Plastics and Articles thereof |
|
Sub Heading 39.04 |
Polymers of Vinyl Chloride or of other Halogenated olefins in primary
forms. |
|
Four Digit 39 04.22 |
Plasticized |
|
Eight Digit 39 04.22 10 |
Poly (Vinyl Chloride) (PVC) Resin (emulsion grade) |
The customs classification is
indicative only and is not binding on the scope of the product under
consideration.
4. The applicant has claimed that there is no significant difference
in subject goods produced by the domestic industry and exported from subject
countries. Subject goods produced by the Indian industry and imported from
subject countries are comparable in terms of characteristics such as physical
& chemical characteristics, manufacturing process & technology,
functions & uses, product specifications, distribution & marketing and
tariff classification of the goods. The two are technically and commercially
substitutable. The consumers are using the two interchangeably.
5. For the purpose of investigation, the subject goods produced by
the applicant is being treated as like article to the subject goods imported
from subject countries within the meaning of the AD Rules for the purpose of
this investigation.
6. The application has been filed by M/s. Chemplast
Sanmar Limited, Chennai on behalf of the domestic
industry. The applicant domestic producers have provided injury and costing
information. As per the evidence available on record, production of the
applicant accounts for a major proportion of the domestic production and the
same is more than 50% of the Indian production.
7. As per information available on record, the Applicant accounts for
78.97% of the total domestic production. Thus, the Authority has determined
that the application satisfies the requirements of Rule 2(b) and Rule 5(3) of
the AD Rules and the applicant is being treated as ‘domestic industry’ within
the meaning of Rule 2(b) of the AD Rules.
8. The countries involved in the present investigation are China PR,
Japan, Korea RP, Malaysia, Russia, Taiwan and Thailand.
9. In respect of China PR, the applicant has claimed that China PR
should be treated as Non Market Economy and therefore the Normal value should
be determined in accordance with Para 7 and 8 of Annex-I of the AD Rules. The
applicant has submitted that they have not been able to get the sufficient
information regarding market economy third country for determination of Normal
value in case of China PR. Thus, the applicant has claimed the Normal value on
the basis of constructed cost of production, including selling general and
administration expenses and profits. The applicant has also submitted that
Thailand may be treated as surrogate country for China PR. The Authority seeks
comments on this issue as well.
As regards other subject
countries, the applicant has constructed the normal values in respect of
subject countries stating that they were not able to get any documentary
evidence or reliable information with regard to domestic prices in the subject
countries nor the same are available in the public domain. The Authority has
prima-facie considered the normal value of subject goods in subject countries
on the basis of constructed values as made available by the applicant for the
purpose of this initiation.
10. The applicant has determined export prices based on the data
compiled by IBIS. The export prices have been adjusted for ocean freight,
marine insurance, port handling, inland transportation, and bank commission etc
to arrive at net export price at ex-factory level.
11. There is sufficient evidence that the Normal value of the subject
goods in subject countries is significantly higher than the net Export price,
prima-facie indicating that the subject goods are being dumped by the exporters
from the subject countries.
12. The applicant has furnished evidence claiming injury as a result of
alleged dumping. It has been claimed that the imports have increased in
absolute terms and in relation to production & consumption in India; the
imports are significantly suppressing the prices of the domestic industry. The
applicant has claimed deterioration in performance of the domestic industry in
terms of sales, production, utilization of capacity,
market share, profit, return on capital employed and price suppression etc.
There is sufficient evidence with regard to ‘injury’ being suffered by the
applicant caused by dumped imports from subject countries to justify initiation
of this investigation in terms of the AD Rules.
Initiation of Anti Dumping
Investigation
13. In view of the foregoing paragraphs, the Designated Authority finds
that sufficient evidence of dumping of subject goods from the subject
countries, ‘injury’ to the domestic industry and causal link between the
dumping and ‘injury’ exists 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 the Rules
5 of the AD Rules, to determine the existence, degree and effect of alleged
dumping and to recommend the amount of antidumping measure, which, if levied,
would be adequate to remove the injury to the domestic industry.
Period of investigation
14. The period of investigation for the purpose of present
investigation is 1st April 2008 to 31st March 2009. The injury investigation
period will, however, cover the periods April 2005-March 2006, April 2006-March
2007, April 2007-March 2008 and the Period of Investigation (POI) viz. 1st
April 2008 to 31st March 2009.
15. The known exporters in subject countries, their government through
their Embassy/High Commission in India, the known importers and known users in India
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:
The
Designated Authority,
Ministry of Commerce
& Industry,
Department of Commerce,
Directorate General of
Anti-Dumping & Allied Duties, (DGAD),
Room No. 240, Udyog Bhawan,
New Delhi - 110107.
16. 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.
Submission of information on
Non-confidential basis
17. In terms of Rule 7 of the AD rules, the interested parties are
required to submit non-confidential version of any confidential information
provided to the Authority along with the reasons for claiming confidentiality.
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 such information, such information is not
susceptible to summary; a statement of reason thereof is required to be
provided.
Notwithstanding
anything contained in para above, 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 authorise
its disclosure in a generalised or summary form, it
may disregard such information.
18. Any information relating to this investigation
and any request for hearing should be sent in writing so as to reach the
Authority at the above mentioned address, not later than forty days (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 Designated Authority may record its findings on the basis of
the ‘facts available’ on record in accordance with the AD Rules.
19. In terms of Rules 6(7), any interested party may inspect the public
file containing non-confidential version of the information/evidence submitted
by other interested parties.
Use of ‘facts available’
20. 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.