New Delhi, the 21^st November, 2001

No. 46/1/2001-DGAD- M/s National Organic Chemical Industries Limited on behalf of the domestic industry has filed a petition 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 before the Designated Authority (herein after referred to as the Authority) alleging dumping of Isopropyl Alcohol from Singapore, USA, European Union and China and requested for anti dumping investigations and levy of anti dumping duties.

1. Product involved: The product involved in the present petition is Isopropyl Alcohol (Bulk & Packed) (also referred as subject goods hereinafter) originating in or exported from the subject countries and classified under Customs Sub-heading 2905.1201 of the Customs Tariff Act, 1975. The classification, is, however, indicative only and is in no way binding on the scope of the present investigation.

2. Domestic Industry Standing: The petition has been filed by the M/s National Organic Chemical Industries Limited, Mumbai. The petitioner is the sole producer of Isopropyl Alcohol in India and, therefore, the petitioner satisfies the standing to file the petition on behalf of the domestic industry.

3. Country(ies) involved: The countries involved in present investigation is Singapore, USA, European Union and China (hereinafter referred to as to as subject countries /territory.)

4. Like Articles: The petitioner has claimed that goods produced by them are like articles to the goods produced, originating in or exported from the subject countries/ territory. Accordingly, Goods produced by the petitioner are being treated as like articles to the goods imported from the subject countries/ territory within the meaning of the Rules.

5.     Normal Value:

(a)    The petitioner has claimed normal value based on the price indicating in the ICIR – LOR, a well recognised magazine in the chemical industry world over for USA, South East Asia and North West Europe. The price indicated of Isopropyl Alcohol in USA is US$ 584 PMT, for Singapore US$ 565.50 PMT and for EU US$ 553.80 PMT.

The Authority has considered the same as prima facie evidence for Normal Value for USA, Singapore and EU.

(b) Annexure 1 of the Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 had been amended vide Notification No. 44/99-CUS (NT), dated 15-7-99 and subsequently Notification No. 28/2001(N.T.) dated 31^st May, 2001whereby the following Principle 7 had been added:-

"In case of imports from non-market economy countries, Normal Value shall be determined on the basis of the price of constructed value in a market economy third country, or the price from such a third country to other countries, including India, or where it is not possible, on any other reasonable basis, including the price actually paid or payable in India for the like product, duly adjusted if necessary, to include a reasonable profit margin. An appropriate market economy third country shall be selected by the Designated Authority in a reasonable manner keeping in view the level of development of the country concerned and the product in question, and due account shall be taken of any reliable information made available at the time of the selection. Account shall also be taken within time limits; where appropriate, of the investigation if any made in similar matter in respect of any other market economy third country. The parties to the investigation shall be informed without unreasonable delay the aforesaid selection of the market economy third country and shall be given a reasonable period of time to offer their comments."

Vide Custom Notification No.28/2001(NT) dated 31.5.2001, further Principle 8 as under has also been inserted and in the Note appended thereto Peoples’ Republic of China has been included in the list of non-market economy countries:

"The term "non market economy country" subject to the Note to this paragraph means every country listed in the note and includes any country which the Designated Authority determines and which does not operate on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair value of the merchandise. While making such determination, the Designated Authority shall consider as to whether,

1. the decision of concerned firms in such country regarding prices, costs and inputs, including raw materials, cost of technology and labour, output, sales and investment, are made in respect to market signals reflecting supply and demand and without significant State interference in this regard, and whether cost of major inputs substantially reflect market values;

2. the production costs and financial situation of such firms are subject to significant distortions carried over from the former non-market economy system, in particular in relation to depreciation of assets, other write off, barter trade and payment via compensation of debts;

3. such firms are subject to bankruptcy and property laws which guarantee legal certainty and stability for the operation of the firms, and

4. the exchange rate conversions are carried out at the market rate;

Provided that in view of the changing economic conditions in Russia and in the Peoples’ Republic of China, where it is shown on the basis of sufficient evidence in writing on the factors specified in this paragraph that market conditions prevail for one or more such firms are subject to anti-dumping investigations, the Designated Authority may apply the principles set out in paragraphs 1 to 6 ( of Annexure 1 of Rules supra) instead of the principles set out in this paragraph.

Note: For the purpose of this paragraph, the list of non-market economy countries is Albania, Armenia, Azerbaijan, Belarus, Peoples’ Republic of China, Georgia, Kazakstan, North Korea, Kyrghyzstan, Mongolia, Russia, Tajikstan, Turkmeistan, Ukraine, Uzbekistan and Vietnam. Any country among them seeking to establish that it is a market economy country as per criteria enunciated in this paragraph, may provide all necessary information which shall be taken due account by the Designated Authority."

(c) In accordance to the Rules as amended above, the petitioners have claimed Normal Value for China PR based on the basis of Constructed Normal Value of the subject goods in India. In terms of the aforesaid Rules it will be incumbent upon the exporters from the China PR, in case they claim their exports to be from market economy country, to provide sufficient evidence to the Designated Authority in accordance with the aforesaid Rules.

The Authority has considered the Constructed Normal Value as prima facie evidence for Normal Value for China PR.

6. Export Price: The petitioner has claimed that Import Statistics are available through DGCI&S, Calcutta for the period April, 2000 to June, 2001. The petitioner has claimed adjustments on account of ocean freight, marine insurance, and commission to arrive at the ex-factory price.

7. Dumping Margin: There is sufficient prima-facie evidence that the normal value of the subject countries/ territory is higher than the price at which it has been exported to India indicating prima-facie that the subject goods are being dumped by the exporters from the subject countries/territory.

8. Injury and Causal Link: Various parameters relating to injury such as suppressed domestic price, increased stock and reduction in profitability etc. prima-facie indicate collectively and cumulatively that domestic industry has suffered material injury on account of dumping.

9. Initiation of Anti-Dumping Investigation: The Designated Authority, in view of the foregoing paragraph, initiates anti-dumping investigations into the existence, degree and effect of alleged dumping of the subject goods originating in or exported from the subject countries/territory.

10. Period of Investigation: The period of investigation for the purpose of present investigation is 1^st April, 2000 to 30^th June, 2001.

11. Submission of Information: The exporters in the subject countries/territory and the importers in India known to be concerned are being addressed separately to submit relevant information in the form and manner prescribed and to make their views known to the Designated Authority at the following address:-

Designated Authority
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Anti Dumping & Allied Duties
Udyog Bhavan, 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.

12. Time Limit: Any information relating to the present investigations should be sent in writing so as to reach the Authority at the address mentioned above not later than forty days from the date of publication of this notification. The known exporters and importers, who are being addressed separately, are, however, required to submit the information within forty days from the date of letter addressed to them separately.

13. Inspection of Public File: In terms of Rule 6(7), any interested party may inspect the public file containing non-confidential version of the evidence submitted by other interested parties.

14. 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.

(L.V. SAPTHARISHI)   DESIGNATED AUTHORITY