MINISTRY OF COMMERCE

Initiation Notification

New Delhi, the 18th March, 1998

Subject : Initiation of anti-dumping investigations concerning Import of Citric Acid from People Repulic of China.

No.29/1/97-ADD.- A petition has been filed by M/s. Citurgia Bio-chemicals Ltd. (referred to as CBL hereinafter) on behalf of the domesic industry in accordance with the Customs Tariff(Amendment) Act, 1995 and Custom Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 before the Designated Authority alleging dumping of Citric Acid from People Republic of China (here-inafter-referred as China) and requested for anti-dumping Investigation and levy of anti-dumping duty.

2. Domestic Industry : The petition has been filed by M/s. Citurgia Bio-Chemicals Ltd., Neville House, JN Heredia Marg, Ballard Estate, Bombay-400038, on behalf of the domestic industry. The petitioner accounts for around 95% of production during period of investigation and, therefore, has the standing to file the petition on behalf of the domestic industry under the aforesaid rules.

3. Production Involved : The Product involved in the petition is Citric Acid originating in or exported from China. The product is classified under Custom Tariff Heading 2918.14. The classification is, however, indicative only and in no way binding on the present investigation. The petitioner has stated that the product is under OGL category as per Import Policy and is mainly used as a preservative in food, softdrinks, drugs etc. and has other industrial uses like in boiler cleaning etc.

4. Like Article : Petitioner has claimed that Citric Acid manufactured by the domestic industry and Citric Acid being dumped by China is being consumed interchangeably, and requested the Authority to treat the same as like articles, though CBL and Chinese could have different manufacturing process.

Dumping :

5. Normal Value : The petitioner claims that it is not feasible for them to obtain Normal Value prevailing in China in view of the market conditions in that country. The Normal Value has been constructed on the basis of cost of production in the country of origin.

6. Export Price : The petitioner has provided export prices as per DGCI&S, Calcutta for the period 1996-97 showing the average CIF rate. Also imports from China for the period April 97 to September 97 have been furnished. Thus, there is sufficient evidence with regard to prevailing export prices to India from the said country.

7. Dumping Margin : There is sufficient prima facie evidence that the export price to India from China were lower than the normal values in the said country, thus there is sufficient evidence that the product under consideration is being dumped into India from China.

Injury :

8. The various parameters relating to injury such as quantum of imports in absolute terms, market share, import price from China and various indicators affecting domestic industry such as sales, stocks etc. collectively and cumulatively, prima facie, indicate that the doemstic industry has suffered material injury.

9. Initiation of Anti-dumping Investigation : The Designated Authority, therefore, initiates anti-dumping investigation into the existence, degree and effect of alleged dumping of Citric Acid originating in or exported from China.

10. Period of Investigation : The period of investigation for the purpose of present investigation is April, 1996 to July 1997 (16 months).

11. Submission of information : The exporters in China and importers in India known to be concerend are being addressed separately to submit relevant information in form and manner prescribed and to make their views known to Smt. Rathi Vinay Jha, Designated Authority & Additional Secretary to Government of India, Ministry of Commerce, Udyog Bhavan, New Delhi-110011.

12. Any other interested party may also make its submissions relevant to the investigation in the presribed form and manner within the time limit set out below.

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

14. Inspection of Public File : In terms of Rule 6(7). any interested party may inspect the public file containing non-confidential versions of he evidence submitted by other interested parties after the expiry of time limit thus set out.

15. In case where an interested party refused access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, or the information is incomplete in any respect the Authority may record its findings on the basis of the facts availbale to it and make such recommendations to he Central Government as deemed fit.

RATHI VINAY JHA…

Designated Authority

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