Mid Term Review
Investigation Initiated on Carbon Black from China, Australia, Russia and Thai
[Ref: F.No.15/41/2010-DGAD dated 30th August
2011]
Subject: Initiation of Mid-term Review (MTR)
investigation with regard to the anti-dumping duties imposed on imports of
“Carbon Black used in rubber applications” originating in or exported from
China PR, Australia, Russia and Thailand.
Whereas
having regard to the Customs Tariff Act, 1975, as amended from time to time,
(hereinafter referred to as Act) and the Customs Tariff (Identification,
Assessment and Collection of Duty or Additional Duty on Dumped Articles and for
Determination of Injury) Rules, 1995, as amended from time to time,
(hereinafter referred to as Rules), the Designated Authority (hereinafter
referred to as Authority), notified its final findings vide Notification
No.14/21/2008-DGAD dated 24th December, 2009 and recommended imposition of
definitive anti-dumping duty on imports of “Carbon Black used in rubber
applications” (hereinafter referred to as subject goods) originating in or
exported from China PR, Australia, Russia and Thailand (hereinafter referred to
as subject countries) and the definitive anti-dumping duty was imposed by the
Central Government vide Notification No. 6/2010-Customs dated 28th January,
2010.
M/s
Automotive Tyre Manufacturers’ Association (ATMA) has submitted an application
requesting for initiation of a review of the anti-dumping duties imposed on the
imports of the subject goods from the subject countries in accordance with
section 9A of the Customs Tariff Act 1975 read with Rule 23 of the Customs Tariff
(Identification, Assessment and Collection of Anti-Dumping Duty on Dumped
Articles and for Determination of Injury) Rules, 1995. They have claimed that
the circumstances that were prevalent during the period of investigation of the
original investigation have changed significantly leading to a situation where
the existing antidumping duties are no longer warranted.
Product
under Consideration
The
product under consideration is ‘Carbon Black used in rubber applications’
(excluding Thermal Black and Carbon black grades meant for semi conductive
compound applications). It is an inorganic chemical used in the production/
processing of rubber (including tyres) as reinforcing filler. Carbon Black is
also known as acetylene black, channel black, furnace black, lamp black,
thermal black, and noir de carbone. Carbon Black can
be divided into two categories – rubber and non-rubber applications. Carbon
Black for rubber applications is the Carbon Black that is used in
production/processing of rubber (including tyres), as a reinforcing filler. The
present investigation is in respect of Carbon Black used in rubber
applications. Carbon Black used in non-rubber applications, such as inks in
copiers and computer printer cartridges, paints, crayons and polishes, is not
within the scope of the present investigation.
The
subject goods fall under Chapter 28 of the Customs Tariff under Subheading
No.28030010. However, the customs classification is indicative only and is in
no way binding on the scope of the present investigation.
Grounds
for Review
The
Applicant has submitted that the import prices of Carbon Black have increased
significantly; that domestic selling prices have also increased significantly;
that the cost of raw material – Carbon Black Feed Stock (CBFS) has come down
significantly and that with the fall in cost of major raw materials, the
Non-injurious price (NIP) for the domestic industry has come down drastically.
The petitioner has further submitted that coupled with a significant increase
in import prices leading to an increase in the landed value of imports, the
injury margin has come down and as a consequence, a need for reviewing the
current level of duties has arisen.
Initiation
Rule
23 of the Anti-dumping Rules, as amended, inter alia reads as follows:
(1)
Any anti-dumping duty imposed under the provision of section 9A of the Act,
shall remain in force, so long as and to the extent necessary, to counteract
dumping, which is causing injury.
(2)
The Designated Authority shall review the need for the continued imposition
of any anti-dumping duty, where warranted, on its own initiative or upon
request by any interested party who submits positive information substantiating
the need for such review, and a reasonable period of time has elapsed since the
imposition of the definitive anti-dumping duty and upon such review, the
designated authority shall recommend to the Central Government for its
withdrawal, where it comes to a conclusion that injury to the domestic industry
is not likely to recur, if the said antidumping duty is removed or varied and
therefore no longer warranted. The Customs Tariff (Amendment) Act 1995 and
the Rules made there under require the Authority to review from time to time,
the need for continued imposition of Anti Dumping
Duty and if it is satisfied on the basis of information received by it that
there is no justification for continued imposition of such duty, the Authority
may recommend to the Central Government for its withdrawal.
On
the basis of information made available by the aforementioned Applicant before
the Authority, the Authority considers it prima facie appropriate to initiate a
mid-term review of the anti-dumping duties imposed on the imports of the
subject goods originating in or exported from the subject countries.
Countries
involved
The
countries involved in the present investigation are China PR, Australia, Russia
and Thailand.
Procedure
Having
regard to the information provided by the Applicant indicating changed
circumstances necessitating a review of the measure in force, the Designated
Authority now considers that it is appropriate to initiate a mid-term review of
the final findings notified vide Notification No. 14/21/2008-DGAD dated 24th December,
2009 published in the Gazette of India, Extraordinary Part I, Section I and the
definitive duties imposed by the Central Government vide Notification
No.6/2010-Customs dated 28thJanuary, 2010 and the Authority hereby initiates an
investigation in accordance with the provisions of Section 9(A) of Customs
Tariff (Amendment) Act 1995 read with Rule 23 of the the
Rules supra to review the need for continued imposition of the anti-dumping
duties. The review will cover all aspects of Notification No.14/21/2008-DGAD
dated 24th December, 2009.
Period
of Investigation (POI)
The
period of investigation for the purpose of the present review is 1st April,
2010 to 31st March, 2011. The injury investigation period will however cover
the periods 2007-08, 2008-09, 2009-10 and the POI (2010-11).
Submission
of Information
The
exporters in subject countries, their Governments through their Embassies/High
Commissions in India, the importers and users in India known 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 Authority in the following address:
The Designated
Authority,
Directorate General
of Anti-Dumping & Allied Duties,
Ministry of
Commerce & Industry,
Department of
Commerce
Room No.240, Udyog Bhawan,
New
Delhi -110011.
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.
Time Limit
Any
information relating to the present review should be sent in writing so as to
reach the Authority at the address mentioned above not later than forty days
(40 Days) from the date of publication of this review 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 Rules supra.
Inspection
of Public File
In
terms of Rules 6(7), any interested party may inspect the public file
containing non-confidential version of the evidence submitted by other
interested parties. 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.