MINISTRY OF COMMERCE & INDUSTRY
(Department of Commerce)
Directorate General of Anti-Dumping & Allied Duties

INITIATION NOTIFICATION

New Delhi 25th June 2002

Sub: - Initiation of Anti-dumping investigation concerning imports into India of D (-) Para Hydroxy Phenyl Glycine Methyl Potassium Dane Salt originating in or exported from China PR and Singapore

No. 14/23/2002-DGAD- M/s Daurala Organics Limited, Daurala, U.P. 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 (hereinafter referred to as the Authority) alleging dumping of D (-) Para Hydroxy Phenyl Glycine Methyl Potassium Dane Salt originating in or exported from Peoples’ Republic of China and Singapore (hereinafter referred to as subject countries) and requested for initiation of Anti Dumping investigations and levy of anti dumping duties.

1. PRODUCT UNDER CONSIDERATION:

The product under consideration in the present petition is "D (-) Para Hydroxy Phenyl Glycine Methyl Potassium (also known as D (-) Alpha Para Hydroxy Phenyl Glycine Dane Salt(Methyl Potassium), D(-) Alpha Para Hydroxy Phenyl Glycine Dane Salt(Methyl Potassium), D (-) Alpha Para Hydroxy Phenyl Glycine Methyl Potassium Dane Salt, D (-) Alpha Para Hydroxy Phenyl Glycine Methyl Aceto Acetate Potassium Salt " (hereinafter referred to as subject material/PHPGDS ). Predominantly D (-) Para Hydroxy Phenyl Glycine Base is imported in India which is converted to PHPGDS by various manufacturers/importers and are used for the production of Amoxycillin (bulk drug) and Cefadroxyl.

Petitioners have claimed that PHPGDS is classified under Customs chapter 29.42 in the category of Other Organic compound. PHPGDS is classified under Customs sub-heading no. 2942.00. As per ITC eight-digit classification PHPGDS is classified in others category i.e. in 2942.0008.

They have further mentioned that the monthly statistics of imports from DGCI&S is available only up to Nov 2001. The intensity of dumping increased basically from July 2001 when petitioner has started its commercial production and it got further aggravated after imposition of Anti Dumping duty on PHPG Base on China and Singapore. Imports from various dry ports are usually not reflected in the statistics provided by DGCI&S. Additionally, the import data indicated by DGCI&S includes other Dane Salt also which have been clubbed with the subject Goods.

Since for PHPG Dane Salt the DGCI&S data does not give the exclusive imports data, petitioner has relied upon the data of secondary source i.e. from International Business Information Services, Mumbai. The data provided by the agency is based on Customs Daily Lists.

2. DOMESTIC INDUSTRY

The petition has been filed by M/s Daurala Organics Limited SPL Ltd., The petitioner has claimed that they are the sole producer of subject material in India. Prima facie the petitioners satisfy the criteria of standing to file the petition on behalf of the Domestic Industry in terms of Rule 5(3) (a) of the Rules supra.

3. COUNTRIES INVOLVED:

The countries involved in the present investigation are the China PR and Singapore.

4. LIKE ARTICLE:

The petitioner has claimed that the goods produced by them are Like Article to the goods originating in or exported from subject countries. Therefore, for the purpose of the present investigation, the goods produced by the petitioners are being treated as ‘like articles’ of the product imported from the subject countries within the meaning of the Rules supra.

5. NORMAL VALUE:

The Authority notes that the petitioner has claimed normal value of subject goods in PR China on the basis of constructed cost of production with appropriate adjustments treating China as Non-Market economy. The Authority proposes to examine the claim of the petitioner in the light of Para (7) and (8) of the Annexure II of the Anti dumping rules as amended. The Authority has prima facie considered the normal value of subject goods in PR China on the basis of constructed cost of production as made available by the petitioner. As regards Singapore the petitioner has not been able to get any information about their domestic sales and third country sales of subject goods. They have submitted the calculation for constructed cost of production for normal value determination. The Authority has prima facie considered normal value of subject goods in Singapore on the basis of constructed normal value.

6. EXPORT PRICE:

The petitioners have claimed the export price from the subject countries based on the secondary data sources, i.e. M/s International Business Information Service, Mumbai whose data is based on the Customs Daily List. From the data of secondary source, the petitioners have sorted the data on the basis of description and clubbed the transactions for the product under consideration. Adjustments have been claimed on account of ocean freight, marine insurance, inland transportation in the country of exports, port handling and port charges to arrive at the Export Price at ex-factory level.

7. DUMPING MARGIN

There is prima facie evidence that Normal Value of the subject goods in the subject countries is significantly higher than the ex-factory export price indicating prima facie that the subject goods are being dumped by exporters from the subject countries.

8. INJURY AND CAUSAL LINK

Various parameters relating to injury such as the decline in the sales realisation, decline in profitability, price suppression, lower utilisation of capacity, increase in market share of imports from subject countries and losses to the Domestic Industry due to non-realisation of fair and reasonable price from the sale of the subject goods, prima facie indicate collectively and cumulatively that the Domestic Industry has suffered material injury on account of dumping.

9. INITIATION OF ANTI DUMPING INVESTIGATIONS

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 goods originating in or exported from the subject countries.

10. PERIOD OF INVESTIGATION

The Period of Investigation for the purpose of the present investigation is 1st July 2001 to 31st March 2002.

11. SUBMISSION OF INFORMATION

The exporters in the subject countries and the importers in India known to be concerned with this investigation are being addressed separately to submit relevant information in the form and manner prescribed and to make their views known to the Designated Authority, Directorate General of Anti Dumping & Allied Duties, Ministry of Commerce & Industry, Department of Commerce, Government of India, Udyog Bhavan, New Delhi – 11 00 11.

As per Rule 6(5) of Rule supra, the Designated Authority is also providing opportunity to the industrial users of the article under investigation, and to representative consumer organizations who can furnish information which is relevant to the investigation regarding dumping, injury and causality. Any other interested party may also make its submissions relevant to the investigation within the time limit set out below.

12. TIME LIMIT

Any information relating to the present investigation 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 the letter addressed to them separately. It may be noted that no request whatsoever shall be entertained for extension in the prescribed time limit.

13. NON-CONFIDENTIAL SUMMARY:

All interested parties must provide a non-confidential summary of any information provided on a confidential basis in terms of Anti-Dumping rule7 (2). This information will be subject to acceptance in terms of Rules 7(1) and 7(2).

14. 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. In case where an interest 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

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