Mid Term Review Initiated on EPDM from EU, USA, China and Brazil

To be published in the Part 1 Section 1 of Gazette of India, Extraordinary

Government of India

Ministry of Commerce & Industry

Department of Commerce

(Directorate General of Anti dumping & Allied Duties)

Dated the 27th March, 2009

Initiation Notification

(Mid-term Review)

Subject: Initiation of Mid-term Review regarding anti dumping duty imposed on imports of Ethylene-Propylene-Non-Conjugated Diene Rubber(EPDM) originating in or exported from the European Union, USA, China PR and Brazil.

No. 15/2/2009-DGAD – Whereas having regard to the Customs Tariff Act, 1975 as amended in 1995 and the Customs Tariff (Identification, Assessment and Collection of Duty or Additional Duty on dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as AD Rules), vide Notification Number 14/18/2004-DGAD dated 15.6.2006 published in the Gazette of India, Extraordinary Part I, Section I dated the 16th June, 2006, the Designated Authority (herein after referred to as the Authority) notified its final findings recommending definitive anti dumping duty on imports of Ethylene-Propylene-Non-Conjugated Diene Rubber(EPDM) (hereinafter referred to as subject goods) originating in or exported from European Union, USA, China PR and Brazil (hereinafter referred to as subject country).

And Whereas definitive anti dumping duty was imposed on the subject goods vide Customs Notification No.75/2006-Customs dated 19th July, 2006.

2. Product Under Consideration

The product under consideration involved in the original investigation and also in the present review application is " Ethylene-Propylene-Non-Conjugated Diene Rubber(EPDM)” originating in or exported from European Union, USA, China PR and Brazil. The subject goods are classified under Chapter 40 of the Customs Tariff Act, 1975 under subheading No.4002.70 at six digit level. However, Customs classification is indicative only and, in no way, binding on the scope of the proposed investigation.

The product under consideration in the present investigation is Ethylene-Propylene-Non-Conjugated Diene Rubber(EPDM).

EPDM is a synthetic Rubber and technical specifications of EPDM are broadly governed by Ethylene, Propylene and Diene content, and Mooney Viscosity. With the variations in Ethylene, Propylene and Diene Content and for Mooney Viscosity, different grades of EPDM Rubber can be produced.

EPDM Rubber is primarily used in rubber profiles, automotive tyres and tubes, cables, hoses and moulded items used in the automobile parts. The changes in Ethylene, Propylene and Diene content and Mooney Viscosity and other characteristics will merely modify the general property for which EPDM is consumed. EPDM Rubber can be of various grades and can be supplied in various forms. This investigation covers all grades of Ethylene-Propylene-Non-Conjugated Diene Rubber(EPDM), in all grades and all forms.

3. Initiation

The Customs Tariff (Amendment) Act 1995 and the AD Rules made there under require the Authority to review from time to time the need for continuance of anti dumping duty. The All India Rubber Industries Association and Automotive Tyre Manufacturers Association have represented that EPDM is one of the key raw materials used by the tyre and non-tyre sectors. Although the sole manufacturer of the product viz., M/s. Unimers India Ltd has suspended production of the same since February-March, 2007 and is unlikely to resume production, the anti-dumping duty on the subject goods still continues affecting the competitiveness of the tyre and non-tyre sector goods. In view of the above, they have requested for an immediate withdrawal of anti-dumping duty on EPDM.

M/s. Unimers India Ltd., Mumbai has also intimated that they have suspended production of EPDM Rubber and declared formal permanent closure of their factory as per the provisions of The ID Act, 1947 with effect from 26.6.2008.

In view of the above circumstances, the Designated Authority considers that the mid-term review of the anti dumping duty recommended would be appropriate at this stage under the provision of Rule 23 of AD Rules and Section 9A (5) of the Customs Tariff (Amendment) Act, 1995 as amended.

4. Countries involved

The countries involved in the present investigations are European Union, USA, China PR and Brazil.

5. Grounds for Review

The petitioners viz., All India Rubber Industries Association and Automotive Tyre Manufacturers Association in their petitions have claimed that the sole manufacturer of EPDM i.e. M/s. Unimers India Ltd., has suspended production since long and EPDM being a critical input for the tyre and non-tyre sector, the anti-dumping duty imposed on the subject goods should be withdrawn with immediate effect to avoid unnecessary cascading effect on the cost of the tyre and non-tyre products.

Further, M/s. Unimers India Ltd., Mumbai has also intimated that they have suspended production of EPDM Rubber and declared formal permanent closure of their factory as per the provisions of The ID Act, 1947, with effect from 26.6.2008. In view of the above circumstances a review of anti dumping measures in force is necessary.

6. Procedure

Having regard to the information provided by the applicants indicating changed circumstances necessitating a review of the measure in force, the Designated authority now considers that a mid-term review of the final findings notified vide No. 14/18/2004-DGAD dated 15.6.2006 published in the Gazette of India, Extraordinary Part I, Section I dated the 16th June, 2006, and the Definitive anti dumping duty imposed by Customs Notification No.75/2006 dated 19th July, 2006 is appropriate in view of the changed circumstances, in terms of the provision of Section 9(A) of Customs Tariff (Amendment) Act 1995 read with Rule 23 supra. The review covers all aspects of Notification No. 14/18/2004-DGAD dated 15.6.2006.

7. Period of Investigation

The Period of Investigation (POI) for the purpose of the present mid-term review is January to December,2008 (12 months). However, injury analysis shall cover the years 2005-06, 2006-07, 2007-08 & POI.

8. Submission of Information

The exporters in subject country, their government through their Embassy in India/representatives, 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:

The Designated Authority
Directorate General of Anti-Dumping & Allied Duties,
Ministry of Commerce & Industry,
Department of Commerce
Room No.240, Udyog Bhavan,
New Delhi-110107.

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:

9. Time Limit

Any information relating to the present review and any request for hearing 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 letter 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 AD Rules.

10. 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 Governments as deemed fit.

(R. Gopalan)

The Designated Authority