i. The Designated Authority (hereinafter referred to as the Authority) issued a public notice vide Notification No. 38/1/97-ADD dated 12^th May, 1998, initiating of definitive Anti Dumping Duty recommended on imports of 3, 4, 5-Tri Methoxy Benzaldehyde (here in referred to as TMBA) originating in or exported from Peoples Republic of China vide Notification No. 9/10/94 dated 24^th July, 1995 and definitive Anti Dumping Duties imposed by the Central Government on 20.10.1995.

ii. The investigations concluded by the Authority vide Notification No. 9/10/94 dated 24^th July, 1995 have been referred to as "the previous investigations";

iii. The Authority issued a public notice dated 12^th May, 1998 published in the Gazette of India, Extraordinary, initiating review of anti dumping concerning imports of TMBA, classified under custom heading 2912.49 of Schedule I of the Customs Tariff Act, 1975.

iv. The Authority forwarded a copy of the public notice to all the known exporters and industry associations (whose details were made available by M/s. Alpha Drug India Ltd. the petitioners in the previous investigations) and gave them an opportunity to make their views known in writing in accordance with Rule 6(2);

v. The Authority forwarded a copy of the public notice to all the known importers and consumers of TMBA in India (whose details were made available by M/s. Alpha Drug India Ltd. in the previous investigations) and advised them to make their views known in writing within forty days from the date of the letter;

vi. Request was made to the central Board of Excise and Customs (CBEC) to arrange details of imports of TMBA in India during the past three years including the period of review. No information was however, received from CBEC;

vii. The Authority sent questionnaire, to following manufactures of TMBA in the People Republic of China, in accordance with the rule 6 (4). These companies, however, have not filed response to the questionnaire:-

viii. The Embassy of Peoples Republic of China in New Delhi was informed about the initiation of the review in accordance with rule 6(2) with a request to advise the exporters/producers from their country to respond to the questionnaire within the prescribed time. A copy of the letter and questionnaire sent to the exporters was also sent to the Embassy, alongwith a list of known exporters/producers. None of the exporter/producer, however, filed any response.

ix. A questionnaire was sent to the following importers and/or consumers of TMBA in India calling for necessary information in accordance with rule 6(4):

The reply was received from M/s. Zora Pharma Ltd. and Apurva Organics Ltd. However, no response received from the other importers/consumers.

x. A questionnaire was sent to M/s. Alpha Drug India Ltd. calling for necessary information M/s. Alpha Drug India Ltd. filed its response.

xi. The Authority held a public hearing on 16.11.1998 to hear the views orally, which was attended by M/s. Alpha Drug India Ltd., M/s. Zora Pharma Ltd. and M/s. Borroughs Wellcome (India) Ltd. The parties attending the public hearing were requested to file written submissions of the views expressed orally. However, the written submission have been received only from the petitioners i.e. M/s. Alpha Drugs. Accordingly, the same have been considered by the Designated Authority.

xii. The Authority kept available non-confidential version of the evidence presented by various interested parties in the form of a public file maintained and kept open for inspection by an interested party;

xiii. Investigation was carried out for the period starting from 1^st April, 1997 to 31^st March, 1998.

xiv. **** In this notification represents information furnished by the petitioner on confidential basis and so considered by the Authority under the Rules.

xv. In accordance with Rule 16 of the Rules supra, the essential facts/basis considered for these findings were disclosed to all known interested parties and comments received if any, on the same have also been duly considered in these findings.

B. VIEWS OF M/S. ALPHA DRUG INDIA LTD.

2. The petitioner M/s. Alpha Drug India Ltd. have made the following submission:-

(i) The CIF export prices of TMBA was US$ 15.74 per kg. during 1993-94 and it has come down subsequently to US$ 12 per kg. 1997-98 despite the imposition of anti dumping duties.

(ii) Alongwith the decline in the CIF prices, there has been a significant fall in the customs duties from 65% to 35% resulting in lower landed value of TMBA exported from China.

(iii) While to some extent the fall in CIF prices have been compensated by the depreciation in the value of Indian rupees from 1993-94 to 1997-98, the fact remains that the reduction of CIF prices by Chinese exporters has resulted in increase in dumping margin.

(iv) The normal value of TMBA in China is not available. The normal value based on the constructed cost was determined at Rs. 763/- per kg. during the previous investigation. As TMBA was a matured industry in China even in 1993-94 and there is no scope for any reduction in the normal value, the normal value in 1997-98 continues to be the same as in 1993-94. The normal value indicates the level of dumping margin as compared to the export prices.

C. VIEWS OF EXPORTERS, IMPORTRER AND OTHER INTERESTED PARTES

3. M/s. Zora Pharma, in their response stated that they support the continuation of the Anti-Dumping Duty. However, no information received from them in the prescribed proforma. M/s. Apurva Organics stated that their unit is closed for the last nine months. No other exporters/producers, have responded to the Authority and offered any comments.

4. The submissions made by M/s. Alpha Drug India Ltd. importers, consumers and other interested parties have been examined, considered and, wherever appropriate, dealt hereinafter.

E. PRODUCT UNDER CONSIDERATION, DOMESTIC INDUSTRY AND LIKE ARTICLES

5. The final findings notified earlier with regard to the product under consideration, domestic industry and like articles remain unchanged.

F. DUMPING

Normal value

6. The Authority sent questionnaire to the known exporter for the purpose of determination of normal value in accordance with Section 9A(1)c. However, none of the exporters responded to the Authority nor furnished any information. The Authority, therefore, holds that none of the exporters from the subject country have co-operated with the Authority as envisaged under the Rules. The Authority also holds that the primary responsibility to establish normal value of TMBA in Peoples Republic of China rests with the exporters/producers, who have failed to co-operate with the Authority.

7. The Authority notes that there were imports of TMBA in India originating in or exported from People Republic for China during the period of review. But the importers of TMBA during the period of review have not co-operated with the Authority and have not furnished any information. The details of actual expenditure incurred by these importers on import of TMBA from Peoples Republic of China are, therefore, not available.

8. The claims by M/s. Alpha Drug India Ltd. that the normal value of TMBA as prevalent in 1993-94 continues to be same during the period of investigation is not acceptable. The normal value for the previous investigations was based on the constructed cost of production based on the norms of consumption of various raw materials and the raw materials prices prevalent at the relevant time. Due to change in the raw material price and other relevant factors, the normal value as constructed earlier have not been considered by the Designated Authority to be appropriate for the present review.

9. The Designated Authority has, therefore reconstructed the normal value of TMBA based on the conditions prevailing during the period of investigation. For this purpose, the consumption of raw materials have been adopted based on the norms of consumption of raw materials of M/s. Alpha Drug India Ltd. The raw materials rates have been adopted as are prevalent in the domestic market. Appropriate adjustments have been made towards the customs duties in the case of imported raw materials. For the purpose of constructed cost, the conversion cost of M/s. Alpha Drug India Ltd., has been adopted as prevalent in China. Appropriate adjustment have been allowed for returns on investments to work out the normal value of TMBA during the period of investigation. Accordingly, the constructed cost of TMBA in China during the period of investigation work out to Rs. 684/- per kg.

G. EXPORT PRICE:

10. The export price of TMBA has been adopted on the basis of the information compiled by DGCI&S, Calcutta. Since the information as per DGCI&S, Calcutta is the CIF prices in India, appropriate adjustments have been made for the ocean freight, insurance charges and the inland freight to arrive at the ex-works export prices of TMBA in China. The average ex-works prices of TMBA for China after the adjustments was Rs. 410.21/kg.

11. Since none of the exporters from the subject country and importers in India have responded to the Authority, the Authority has not determined dumping margins for individual exporters. The Authority took into account the information furnished by M/s. Alpha Drug India Ltd. as no other party has furnished any factual information with sufficient evidence, for the purpose of fair comparison between the normal value and the export price and has compare normal value with weighted average export price. The comparison has been considered as on ex-works basis. The comparison shows dumping margin of 64 percent of export price.

H. INJURY:

12.

I. CAUSAL LINK

13.

J. LANDED VALUE:

14. The landed value of imports from Peoples Republic of China has been calculated based on the imports information available from the DGCI&S, Calcutta, during POI, after adding the prevailing level of customs duties and one percent landing and two percent handling charges. The anti dumping duty in force on imports from Peoples Republic of China PR has not been included in the landed values.

15. The Authority concludes, after considering the foregoing, that: