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Dated the,16th January 2006
INITIATION NOTIFICATION
Subject: Initiation of Anti-Dumping investigations concerning imports of Pencillin-G originating in or exported from China PR.
No.14/12/2005-DGAD. M/s Southern Petro Chemical Industries Corporation, has filed an application before the Designated Authority (herein after referred to as the Authority) 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(herein after referred to as AD Rules) for initiation of anti dumping investigation concerning alleged dumping of Pencillin-G originating in or exported from China PR.
AND WHEREAS, the Authority finds that sufficient prima facie evidence of dumping from the subject country, injury to the domestic industry and causal links between the dumping and injury exist, 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 said Rules, to determine the existence, degree and effect of any alleged dumping and to recommend the amount of antidumping duty, which if levied would be adequate to remove the injury to the domestic industry.
Domestic Industry:-
2. Application has been filed by M/s Southern Petro Chemical Industries Corporation on behalf of the domestic industry and they claimed that there were three more producers of Pencillin-G in India. M/s J.K. Pharma has closed the plant, M/s Alembic Limited, varorada has suspended the production in September 2004 and M/s Torrent Biotech Limited has also suspended the production in September 2005. As per the evidence available before the Authority, applicant has the standing to file the case for anti dumping investigation on behalf of domestic industry as per Rule 2(b) and Rule 5(3)(a) of Anti Dumping Rules.
Product under consideration:-
3. The product under consideration is “Pencillin-G” (herein after referred to as the subject goods) which is being dumped in the Indian market by the exporters from China PR(hereinafter referred to as subject country). Pencillin is not a single compound but a group of closely related compounds, all with the same basic ring-like structure (a beta-lactam) derived from two amino acids (valine and cysteine) via a tripeptide intermediate. Pencillin is a β-lactam antibiotic used in the treatment of bacterial infection caused by susceptible, usually Gram-positive, organisms. The name "pencillin" can either refer to several variants of pencillin available, or to the group of antibiotics derived from the pencillin. The subject goods are classified within Customs subheading 29.41.10 and Indian Trade Classification based on Harmonized system. The Custom classification is indicative only and not binding on the scope of investigation.
Like articles:-
4 The applicant has claimed that the goods produced by them are “like articles” to the goods originating in or exported from the subject country. Pencillin-G produced by the domestic industry and imports from China PR are comparable, technically and commercially substitutable in terms of characteristics such as physical and chemical characteristics, manufacturing process and technology, functions and uses, product specifications, pricing, distribution and marketing of the goods. Therefore, for the purpose of investigation the Pencillin-G produced by the applicant is being treated as like articles of Pencillin-G (hereinafter referred to as subject goods) imported from subject country within the meaning of the AD Rules.
Countries involved:-
5. The country involved in the present investigation is China PR.
Normal value:-
6. The Authority notes that the applicant has claimed normal value of subject goods in China PR based on constructed cost of production with appropriate adjustments treating China PR as non-market economy. The Authority proposes to examine the claim of the applicant in the light of Para 7 and 8 of Annexure I of AD Rules, as amended. The Authority has prima-facie considered the normal value of subject goods in China PR on the basis of constructed cost of production as made available by the applicant and it has been considered by the Authority for the purpose of initiation.
Export Price:-
7. The export price has been claimed on the basis of import data provided by IBIS (International Business Information System) and DGCI&S( Director General Commercial Intelligence and Statistics), Kolkata. Price adjustments have been claimed on account of Ocean freight, marine insurance, inland transportation in the country of exports, port handling and port charges etc to arrive at the net export price. There is sufficient evidence of export price and the adjustments claimed by the applicant for the subject goods from the subject country.
Dumping margin:-
8. There is sufficient evidence that the normal value of the subject goods in the subject country is significantly higher than the net export price indicating prima-facie that the subject goods are being dumped by the exporters from the subject country.
Initiation of Anti Dumping Investigations:-
9. The Designated Authority, in view of the foregoing paragraphs, initiates anti dumping investigations into the existence, degree and effect of alleged dumping of the subject good originating in or exported from the subject country.
Injury and Causal Link:-
10. The applicant has furnished evidence regarding the injury having taken place as a result of the alleged dumping in the form of fall in their market share because of increased volume of dumped imports, price undercutting, lost sales and substantial decline in profitability for the domestic industries. There is sufficient prima-facie evidence of the material injury being suffered by the applicant caused by dumped imports from subject country.
Period of investigation:-
11. The period of investigation(hereinafter referred to as POI) for the purpose of present investigation is 1st October 2004 to 30thSeptember 2005. The injury investigation period will however cover the periods from 2001-2002 to 2004-2005 and the POI.
Submission of information:-
12. The exporters and importers known to be concerned and domestic industry are being informed separately to enable them to file all information relevant in the form and manner prescribed. Any other party interested to participate in the present investigation may write to:
The Designated Authority
(Directorate General of Anti-Dumping & Allied Duties)
Department of Commerce
Room No. 240
Udyog Bhavan, New Delhi-110011.
Time limit:-
13. Any information relating to this investigation should be sent in writing so as to reach the Authority at the above address not later than 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 Authority may record their findings on the basis of the facts available on record in accordance with the Rules supra.
INSPECTION OF PUBLIC FILE:-
14. In terms of rule 6(7) any interested party may inspect the public file containing non-confidential versions of the evidence submitted by other interested parties.
15. All interested parties shall provide a confidential and non-confidential summary in terms of Rule 7 (2), for the confidential information provided as per Rule 7 (1) of the Rules supra.
16. In case any interested party refuses access to and 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.
(Christy Fernandez)