Government of India
Ministry of Commerce & Industry
(Department of Commerce)
New Delhi, the 22 August 2003
INITIATION NOTIFICATION
Subject: Initiation
of Anti-dumping Investigations concerning import of PVC Paste Resin originating in or
exported from Korea RP, Saudi Arabia and European Union
No.14/14/2003-DGAD M/s. Chemplast Sanmar Limited,
Chennai, has filed a petition before the Designated Authority (hereinafter referred to as
the Authority) in accordance with the Customs Tariff (Amendment) Act, 1995 and Customs
Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles
and for Determination of Injury) Rules, 1995 alleging dumping of Poly Vinyl Chloride Paste
Resin originating in or exported from Korea RP, Saudi Arabia and European Union and have
requested for initiation of anti-dumping investigations and levy of anti-dumping duties.
1. PRODUCT UNDER CONSIDERATION
The product under investigation in the present case is
Poly Vinyl Chloride Paste Resin also known as Poly Vinyl Chloride Resin (Emulsion grade)
or PVC Paste Resin (herein after also referred to as subject goods). It is produced from
Vinyl Chloride Monomer (VCM) and VCM is produced from EDC, which in turn require chlorine
as major raw material. It is produced and sold in white/off white powder. It is produced
in a number of grades, which differ in “K values”. Various grades are
technically and commercially substitutable. It is used in the artificial leather (Rexene),
coated fabrics, Tarpaulins, conveyor belting, Toys, Automotive sealant and adhesives etc.
PVC Paste resin is classified under subheading no 39042210 in the Customs Tariff Act
though the petitioners have claimed that the imports have been cleared in a number of
classifications. The Poly Vinyl Chloride (suspension grade) classified under 39042110 is
different from the subject goods and is not included under product under consideration.
Investigations are being initiated with respect to product under consideration
irrespective of the classification under which they are being imported. Customs
classifications are indicative only and in no way binding on the scope of investigations.
2. DOMESTIC
INDUSTRY STANDING
The petition has been filed by M/s Chemplast Sanmar Limited,
Chennai. As per the PVC Resin manufacturers Association (PREMA), there are only two major
producer of the PVC Paste Resin in India i.e M.s Chemplast Sanmar Ltd and M/s Finolex
Industries Ltd. The petitioner is a major producer of subject goods in India accounting
for a major proportion of the production of the subject goods in India. The other producer
of the subject goods M/s Finolex Industries has supported the petition. The Authority notes that the petitioner
constitutes a domestic Industry within the meaning of the rule 2(b) and the petitioner
satisfies the criteria of standing to file the petition in terms of Rule 5(3)(a) of the
Rules supra.
3. COUNTRIES INVOLVED
The countries/territory involved in the present investigation
are Korea RP. Saudi Arabia and European Union. (hereinafter also referred to as subject
countries/territory).
4. LIKE GOODS
The petitioner has claimed that goods produced by it are like
articles to the goods originating in or exported from Korea RP. Saudi Arabia and European
Union. There is no significant difference in the subject goods produced by the petitioner
and those exported from subject countries/teriitory.
Petitioner claims that the two are technically and commercially substitutable. Therefore, for the purpose of present
investigation, the goods produced by the petitioner are being treated as Like Articles of
the product imported from the subject countries/territory within the meaning of the Rules,
supra.
5. NORMAL
VALUE
The
Authority notes that the petitioner has claimed normal value of subject goods in European
Union on the basis of domestic prices reported in the published journals namely
“Vinyl Chloride” by Harriman Chemsult Limited which has been claimed as
internationally acknowledged and authentic journal in this trade. The Authority has prima
facie accepted the normal value of the subject goods in the European Union on the basis of
the domestic selling prices as published in the journal. With regards to Korea RP and
Saudi Arabia, the petitioner has claimed the normal value on the basis of the constructed
cost of production which is based on the prices of the EDC in the domestic market of the
exporting country which is a major raw material for the production of the subject goods as
reported by Harriman Chemsult in “Vinyl Chloride” citing that domestic prices
for these countries are nor reported in the said journal or other published journals and
actual selling prices are not publicly available. The Authority has prima facie considered
the normal value of the subject goods in Korea RP and Saudi Arabia on the basis of
constructed cost of production after addition of selling, general and administrative
expenses along with reasonable profit as per the data made available by the petitioner.
6.
EXPORT PRICE
The Petitioner has determined the
export price from the subject countries/territory based on the transaction wise
information from the secondary data sources, i.e. M/s International Business Information
Service, Mumbai whose data is based on the Customs Daily List. 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/territory 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/territory.
8. INJURY AND CAUSAL LINK
Petitioner has furnished information on various parameters
relating to material injury and threat of material injury to the domestic industry. They
have cited excess capacities created by the exporters in the subject countries and
exporters being saddled with the higher inventories in the subject countries as the reason
for threat of material injury. Other
parameters such as increase in volume of imports from subject countries, decline in the
import prices, rise in the share of the subject countries in relation to total demand, and
decline in the markets share of the petitioner, low return in investment, decline in the
profitability and capacity utilization, negative cash flow, price undercutting, price
depression and price suppression, prima facie, indicate collectively and cumulatively that
the domestic industry has suffered material injury and is facing threat of material injury
on account of dumping of subject goods from subject countries/territory.
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 country.
10.
PERIOD OF INVESTIGATION
The Period of Investigation for the
purpose of the present investigation is 1st October 2002 to 30th
June 2003.
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.
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)
ADDITIONAL SECRETARY