Subject: Initiation of anti-dumping investigation concerning import of Sodium Ferrocyanide originating in or exported from the European Union.

23/1/2000-DGAD-M/s. Cyanides & Chemicals Company has filed a petition for initiation of anti dumping investigation concerning the import of Sodium Ferrocyanide from the European Union in accordance with Rule 5(1) of the Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995.

2. Domestic Industry: The petition has been filed by M/s. Cyanides & Chemicals Company ( a unit of M/s. Hindustan Development Corporation Ltd) 65, Free Press House, 215, Fress Press Journal Road, Nariman Point, Bombay 400021 on behalf of the domestic industry. The petitioner has averred that there is one more producer of the product, M/s. Gujarat Alkalies & Chemicals Ltd., Baroda. The petitioner's production of Sodium Ferrocyanide during 1999 accounted for approximately 85% of the total production in the country and therefore has a standing to file the petition on behalf of domestic industry under the Rules above said.

3. Product Involved: Sodium Ferrocyanide, an inorganic chemical, is manufactured by reacting sodium cyanide with ferrous chloride and has application for the production of pigments and in the manufacture of fruit acids. Sodium Ferrocyanide is classified under the customs tariff code 2837.20 (Harmonized system).

4. Countries involved: The petitioners have provided evidence of dumping of the product involved from the Federal Republic of Germany and United Kingdom - both members of European Union (EU). As there are no custom boundaries in the EU between various member-countries, it has been argued that for the purpose of this investigation EU should be treated as a territory subject to investigation. The submissions of the petitioners have been accepted and the present investigation is against the territory of EU (hereinafter referred to as the subject territory).

5. Like Article: The petitioners have claimed that the goods produced by them are 'like article' to the goods exported, originating in or exported from the subject territory. Therefore, for the purpose of investigation, the goods produced by the petitioners are being treated as 'like articles' of Sodium Ferrocyanide (hereinafter referred to as subject goods) imported from the subject territory within the meaning of the Rules.

6. Normal Value: The petitioner has claimed normal value based on the constructed cost of production of the subject goods. Sufficient prima facie evidence has been presented to the Designated Authority with regard to the normal value of Sodium Ferrocyanide in the EU.

7. Export Price: The export price has been claimed on the basis of the data compiled by the Director General Commercial Intelligence & Statistics, Calcutta and the information on actual imports complied from Customs authorities. Price adjustments have been claimed on account of landing charges, ocean freight, marine insurance, commission, port handling etc., to arrive at net export price. There is sufficient evidence of export price and the adjustments claimed for the subject goods from EU.

8. Dumping Margin: There is sufficient prima facie evidence that the normal value of the subject goods in the EU is significantly higher than the net export price indicating prima facie that the subject goods are being dumped by the exporters from the EU.

9. Injury and Causal Link: Various parameters relating to injury such as suppressed domestic price resulting in low sales realisation, decline in the sales volume, decline in the production and capacity utilisation of the domestic industry etc., collectively and cumulatively prima facie indicate that the domestic industry has suffered material injury on account of dumping of subject goods.

10. Initiation of Anti Dumping Investigation: 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.

11. The period of investigation for the purpose of present investigations is 1^st January 1999 to 31^st December 1999 (12 months).

12. Submission of Information: 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:

13. Time Limit: All 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.

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.