N0.56/1/99-DGAD
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE

New Delhi: the 26th May, 2000.

INITIATION NOTIFICATION

Subject: - Initiation of Anti-Dumping investigation concerning import of Caustic Soda from Saudi Arabia, Iran Japan ,USA and France.

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No.56/1/99-DGAD - M/s. Alkali Manufacturers Association of India (AMAI) 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 Caustic Soda from Saudi Arabia, Iran, Japan ,USA and France and requested for anti dumping investigations and levy of anti dumping duties.

1. Product involved:

The product involved in the present petition is Sodium Hydroxide ,commonly known as Caustic Soda (also referred as subject goods hereinafter) originating in or exported from Saudi Arabia, Iran Japan, USA and France .Caustic Soda is an inorganic chemical and is soapy , strongly alkaline odourless chemical. Caustic Soda finds application in various fields like manufacture of pulp and paper, newsprint, viscose yarn, staple fibre, aluminium, cotton, textiles, toilet and laundry soaps, detergent, dyestuffs, drugs and pharmaceuticals, petroleum refining, etc.. Caustic soda is produced in two forms, i.e. Lye and solids. Present investigation covers all forms of caustic soda.

Caustic Soda is classified under Chapter 28 of the Customs Tariff Act, 1975. It is further classified as per International Trade Classification [based on Harmonized Commodity Description and Coding System] under the heading 2815.11 and 2815.12. 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 Alkalis Manufacturers Association of India representing the Domestic industry. There are 40 Domestic manufacturers of Caustic Soda in India. The Association represents all the domestic manufacturers of Caustic Soda in India. The petition has been expressly supported by eleven of the Domestic producers i.e. :-

(i) M/s. Grasim Industries Limited.

(ii) M/s. Gujrat Alkalis & Chemicals Ltd..

(iii) M/s. Mardia Chemicals Ltd.

(iv) M/s Search Chem Industries Ltd.

    1. M/s DCW Ltd
    2. M/s Shriram Alkalies & Chemical.
    3. M/s Punjab Alkalies & Chemicals Ltd
    4. M/s Shree Rayalseeema Alkalies & Chemical Ltd
    5. M/s Andhra Sugars Ltd.
    6. M/s Siel Ltd.

(xi) M/s Jaishree Chemicals Ltd.

These petitioner companies represent 47% of the production of subject goods and have the standing to file the petition on behalf of the domestic industry.

3. Country(ies) involved:

The country(ies) involved in the present investigation are Saudi Arabia, Iran Japan ,USA and France.

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. Goods produced by the petitioner are being treated as like articles to the goods imported from the subject countries within the meaning of the Rules.

5. Normal Value:

The petitioner has claimed normal value based on the constructed normal value of Caustic Soda in case of Saudi Arabia, Iran Japan ,USA and France. . In case of USA., the petitioner has further furnished evidence with regards to prevailing prices of subject goods in the domestic market of USA.

6. Export Price:

The petitioner has claimed the export price of subject goods for the year 1998-99 and for the period April, 1999 to September, 1999, based on information furnished by DGCI&S, Calcutta. The petitioner has further furnished evidence on export price from subject countries based on information made available by port authorities. Adjustments have been claimed on account of ocean freight, Marine insurance, Commission, Inland transportation and clearing and forwarding charges to arrive at the Ex-factory prices.

7. Dumping Margin:

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

8.Injury and Causal Link:

Various parameters relating to injury such as the decline in export price, decline in the sales realization, decline in profitability of domestic industry and failure of domestic industry to realise fair and reasonable price from sale of subject goods, 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 views 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.

10. Period of Investigation(POI):

The period of investigation for the purpose of present investigation is April, 1998 to Sept., 1999(18 Months).

11. Submission of Information:

The exporters in the subject countries 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, Department of Commerce, Anti Dumping Division, Udyog Bhawan, 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.

(RATHI VINAY JHA)
DESIGNATED AUTHORITY

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