Videocon international Ltd. Aurangabad.

JCT Electronics Ltd., New Delhi

Malhotra Shaving Products Ltd.,Mumbai

BPC Engineering, Bangalore

Alsa Marine Harvests Ltd, Chenai

Maharaja Int. Ltd., Gurgaon

Response to the questionnaire was filed by following importer:

They have stated that the high import duties in India-which are set at higher rates compared to those of Thailand and other far east countries, help protect the industry of Indian Polystyrene producers.

(4) M/s. elf Autochem, Singapore:

The exporters have stated that they have not exported Polystyrene to India during the period of investigation.

The exporters have stated that they have not exported Polystyrene to India during the period of investigation.

On behalf of M/s SIAM Polystyrene Co. Ltd, Thailand, M/s Dow Chemical International Ltd. Mumbai have stated that the company have not directly exported any grade of Polystyrene to India during the period of investigation.

4 The submissions made by the exporters, importers, petitioners and other interested parties have been examined, considered and have been dealt at appropriate places hereinafter.

The Trade Department of HKSAR Government furnished with regard to exports of Polystyrene to India (source : Hong Kong Trade Statistics ) for the period April 97 to March 98 along with the comments furnished with respect to non-confidential petition.

The comments furnished mainly relate to 1997-98 and not the period of investigation. Dumping Margins are calculated based on comparison of normal value with export price at same level of trade. For this purpose known producers/exporters in Hong Kong have been requested to furnish information in the form and manner prescribed by the Authority. Further, total exports to India may involve many exporters from Hong Kong and the Dumping Margins are exporter specific and not country specific, The information given by HKSAR is not sufficient to determine individual dumping margins.

5. The product considered in the present investigations is Polystyrene. Polystyrene is a versatile thermoplastic resin available in wide range of formulations from general purpose crystal and impact grades to highly specialised resins. Polystyrene can be of various forms. However, crystal polystyrene (popularly known as general purpose polystyrene or GPPS) and impact polystyrene (popularly known as high impact polystyrene or HIPS) are the subject matter of the present investigations. GPPS is a clear, amorphous polymer and finds application in food packaging, food service items, medical care products and packaging for audio cassettes, compact discs, and other consumer electronic media. HIPS makes use of polybutadiene elastomers for impact modifications and finds implications in toys, furniture, house wares, food packaging, food service, medical care products, appliances, building materials, consumer electronics, and packaging for electronic media, GPPS and HIPS are different types of Polystyrenes and are not substituted with each other.

8. In view of the above, the Authority confirms that Polystyrene produced in India is like article to the Polystyrene exported from the subject countries.

9. Polystyrene is classified under custom sub-heading 390319 of Schedule 1 of the Customs Tariff Act, 1975 and under 39031900 of the ITC. The description is, however, indicative only and is in no way binding on the scope of the present investigations.

10. In order to establish that the polystyrene produced by the domestic industry is a Like Article to the Polystyrene exported from China PR, Hong Kong, Singapore, and Thailand characteristics such as physical characteristics (size, chemical, composition, raw material), manufacturing process and technology, functions and uses product specifications, pricing, distribution and marketing and tariff classification of the goods have been considered. There is no argument disputing that polystyrenes produced by the domestic industry in various forms are Like Articles to the polystyrene imported from the subject countries in various forms. Polystyrenes in various forms imported from the subject countries are interchangeable with Polystyrene produced by the domestic industry. The goods produced by the domestic industry have been treated as like article to the goods exported from the subject countries within the meaning of the Rule 2 (d).

The petition has been filed by Polystyrene Producers’ Association, Mumbai. The petition is supported by the following producers of Polystyrene in India, who are also members of the Association:

There is no other producer of polystyrene in India. The petitioners satisfy the standing to the file the case. M/s. Supreme Petrochem Ltd., LG Polymers Ltd., and Rajasthan Polymers and Resins Ltd. account for total production of Polystyrene in India and, therefore, satisfy the definition of the domestic industry, in accordance with Rule 2(b), supra;

(i) "the comparable price, in the ordinary course of trade, for the like article when meant for consumption in the exporting country or territory as determined in accordance with the rules made under sub-section (6); or

(ii) when there are no sales of the like article in the ordinary course of trade in the domestic market of the exporting country or territory, or when because of the particular market situation or low volume of the sale in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either-

(a) comparable representative price of the article when exported from the exporting country or territory or an appropriate third country as determined in accordance with the rules made under sub-section (6); or

(b) the cost of production of the said articles in the country of origin alongwith reasonable addition for administrative, selling and general cost, and for profits, as determined in accordance with the rules made under sub- section(6):

Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transshipped through the country of export or such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin".

13. The Authority provided opportunity to the exporters from China PR, Hong Kong. Singapore and Thailand to furnish information relevant to the investigations and offer comments, if any, in accordance with the Section cited above. The Authority wrote to the Embassy of China PR, Thailand, Singapore High Commission and Trade Deptt. of HKSAR also, A number of companies requested for extension of time, which also allowed by the Authority on the basis of adequate justification provided.

The company has furnished month wise information on export sale to India for the period of investigation. However, they have not furnished information on sales to Domestic Market and exports to Third Countries. Only sample invoice for Export to India and Domestic sales have been furnished.

Authority notes that M/s Dow Chemical International Ltd is a trader/exporter and not a producer. M/s Dow Chemical Pacific Limited Hong Kong who is the manufacturer of the product under consideration has not furnished information. The manufacturer was required to furnish information in form and manner prescribed by the Authority. No information on normal value has been furnished and hence the dumping margin can not be assessed from the information filed by the company. Hence, M/s Dow Chemical Pacific Limited has been treated as non-cooperative exporter and no separate dumping margin has been worked out in respect of the exporter. For arriving at the dumping margin the information provided by the petitioner has been relied upon.

The exporters have stated that they have not exported Polystyrene to India during the period of investigation.

Authority notes that since M/s Hong Kong Petro Chemical Co. Ltd has not exported the product under consideration during the period of investigation , they may request separate assessment as per new shipper Rule 22 supra;

Scrutiny of the response filed by Thai Petrochemical Industry Public Co. Ltd (hereinafter referred as Thai Petro) reveals that the Thai Petro is a trader and not a producer. It procures from Thai ABC Company Limited who is the manufacturer of the product under consideration. However, the producers have not furnished any information. The manufacturer was required to furnish information on factory cost and profit for exports to India, domestic sales and exports to countries other than India for the period of investigation as prescribed fn questionnaire. The information furnished by the trader is not complete and the details of raw material, direct labour, utilities etc. have not been furnished, as required in the proforma. Further, they have stated that according to the traditional business norm of their country they do not disclose confidential data as there is a chance that the data will be revealed to 3^rd countries such as Europe and North America who are posing a threat to the region's industry growth Balance Sheet, Prom Loss Account of the Company have not been furnished.

Authority notes that M/s ABC Company Limited Thailand being the producer has not responded to the questionnaire, Hence the company has been treated a non-cooperative producer and no separate dumping margin has been worked out in respect of the exporter. For arriving at the dumping margin the available information on record has been relied upon.

On behalf of M/s SIAM Polystyrene Co. Ltd. Thailand, M/s Dow Chemical International Ltd, Mumbai have stated that the company have not directly exported any grade of polystyrene to India during the period of investigation.

Authority notes that In case of goods were not directly exported, it attracts proviso to section 9A (1) C, which provides for determination of normal value in case of exports through third country. Since, no relevant information has been provided, the Authority has determined dumping margin based on available information. Further, margin worked out for any other exporter from Thailand is therefore applicable.

The Authority finds that information furnished in the prescribed proforma is not complete. Documentary evidence in respect of domestic sales on different polystyrene grades has not been furnished. Information furnished in questionnaire "has been for particular month instead of the entire period of investigation. Non-confidential version of confidential version of submissions made has not been furnished. Exports of M/s. Denka Singapore Pvt. Ltd., seem to be bandied through traders viz, Mitsubishi Corpn. Singapore, Chori Co. Ltd. Japan, Nagase Singapore Pvt. Ltd, Singapore and also directly to the consumers in India, However, the invoice prices for the final independent customer through traders, dealers, completing the chain in the transaction has not been furnished. Documentary evidence in respect of the list price indicated in the questionnaire for grades MW 1 and GP 9 (vide Spec.) for the period of investigation has not been furnished.

Authority notes that the two grades of Polystyrene exported to India viz. MW 1 and GP (The exporter has claimed that GP 9 has been exported to India, However, the Authority finds that the exporter has exported the goods as GP 1) are comparable GPPS grades like SC 201 LV / SC 203 E grades produced by one of the domestic producers. Since the producer/ exporter has not furnished full information the Authority proposes to disregard the information for the purpose of preliminary findings. For arriving at the dumping margin the available information on record has been relied upon.

Though the company has furnished information, the information furnished in the prescribed proforma is not complete. Information to Appendix 4 A,B,C & D have not been furnished in the prescribed proforma. They have stated that the detailed information on cost structure is very sensitive and confidential. Information on proprietary technology knowhow, formulation and detailed cost allocation is considered strictly confidential by the company, The details relating to sales of goods under consideration to Indian customers as per Appendix has not been furnished.

Since the exporter has not furnished full information the Authority has decided to disregard the information for the purpose of preliminary findings and for arriving at the dumping margin, the available information on record has been relied upon.

They have stated that the name of the company has changed from Maharaja International Ltd. to Etectrolux Kelvinator Ltd. They have stated that they are importers of special grade Polystyrene Styron 469 R from Hong Kong, The importers have not finished information In the form and manner prescribed by the Authority.

22. Authority notes that in the absence of reliable information on normal value by the exporters, the ICIS -LOR published prices have been relied upon for arriving at the normal value for subject countries. With respect to Thailand, ICIS-LOR published figures or detailed information with regard to the export price to third countries are not available. The normal value has therefore, been determined on the basis of constructed value i.e. cost of production plus administrative , selling & general expenses and reasonable profits on total costs.

23. The Rules relating to comparison provides comparison of normal value and export price provides as follows;

"While arriving at margin of dumping Designated Authority shall make a fair comparison between the export price and the normal value. A comparison shall be made at the same level of trade, normally at ex-works level and in respect of sales made and as nearly possible the same time. Due allowance shall be made in each case on its merits, for differences which occur price comparability including differences in conditions and terms and sales, taxation, levels of trade quantities, physical characteristics and any other differences which are demonstrated to affect price comparability.

24. For the purpose of fair comparison between normal value and export price the Authority took into account the information furnished by the petitioners with regard to HIPS and GPPS based on dally custom list and other information available with the Authority. The normal value and export price determined, as detailed above are at ex-works level and. therefore, the normal value has been compared with weighted average, export price at ex-works level.

26 Under Rule 11 supra, Annexure-II, when a finding of injury is arrived at, such finding shall involve determination of the injury to the domestic industry, "…. taking into account all relevant facts, including the volume of dumped imports, their effect on prices in the domestic market for like articles and the consequent effect of such imports on domestic producers of such articles... In considering the effect of the dumped imports on prices, it is considered-necessary to examine whether there has been a significant price undercutting by the dumped imports as compared with the price of the like article in India, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a significant degree.

Rule (iii) of the Annexure II to the Rules requires that in case imports of a product from more than one country are being simultaneously subjected to anti-dumping investigation, the Authority will cumulatively assess the effect of such imports. The such assessment can be, however, made only if it is determined that:

a) the margin of dumping in relation to the imports from each country is more than two percent expressed as percentage of export price and the volume of the imports from each country is three percent of the import of the tike article in India, and

b) the cumulative assessment of the effect of imports is appropriate in light of the conditions of competition between the imported article and the like domestic article.

27. In the present case, the dumping margin in respect of each exporter as also each country is more than the limits prescribed. Further, cumulative assessment of the effect of imports is appropriate in the light of the conditions of competition between the imported article and the like domestic article. The Authority has, therefore, cumulatively assessed the effects of these imports on the domestic industry.

28. For the examination of the impact of the imports on the domestic industry in India the Authority may kindly consider both (a) volume of dumped imports and the effect of the dumped imports on prices in the domestic market for like article and (b) the consequent impact of these imports on domestic producers of such products The Authority may, for the purpose of assessing the impact of the dumped imports on domestic producers, kindly consider such indices having a bearing on the state of the industry as production, capacity utilization, sales quantum, stock, profitability, net sales realization, the magnitude and margin of dumping, etc. in accordance with Annexure 11 (iv) of the rules supra:

Thus it is observed that the market share of imports of polystyrene from China, Hong Kong, Singapore and Thailand increased from 839 MT (1995-96) to 3955 MT during the period of investigation. The imports have increased significantly in absolute terms. The market share of imports, as a result, increased from 4.43% in 1995-96 to 17.68% in 1997-98 and 19.95% during the period of investigation.

As per the Rules, investigations against any country are required to be terminated if the volume of the dumped imports from the particular source are found to be sbelow 3% of the total imports provided the cumulative imports from all those countries who individually account for less then 3%, are more than 7%. In view of the above provisions, the Authority decided to terminate the present investigations with reference to China PR as the volume of imports from that source during period of investigation was de-minimus.

Production of the domestic industry has increased over the years shown below. However, the increase in production has to be seen in the light of increase in capacity of the domestic industry and the capacity utilisation is more or less the same.

ii) Sale in absolute terms:

Sales of the Domestic Industry has been increased in absolute volumes as shown below:

Though the sales volume has increased, the same has to be seen along with increase in capacity and production of the domestic industry.

The Authority notes that though stock position has improved (which has to be seen in the context of imposition of anti-dumping duty on a number of other countries earlier found to be dumping the subject goods), the stock levels are still very high.

Net average unit sales realisation of the domestic industry, after excluding excise duty, sales commissions paid (if any) and discounts on sales paid (if any) declined significantly as follows:

The Authority finds that average sales realisation has been declining and moreover, the same is significantly below the non injurious price for the domestic industry.

The domestic industry was making losses earlier too from its sales relating to Polystyrene. However, the losses being made in the past were on account of dumping from Japan, Taiwan, Republic of Korea and Malaysia. The Authority earlier recommended anti-dumping duty on imports from these countries in view of dumping of subject goods, causing material injury to the domestic industry. The Authority, however, notes that the dumping started from the subject countries with the imposition of anti-dumping on the countries earlier found to be dumping. The losses suffered by the domestic industry in the past have to be, therefore, seen in the context of injury suffered by the domestic industry from the dumping from the other countries. The Authority however, finds that the domestic industry still suffered losses in the investigation period and was thus not able to earn reasonable profits on its sales relating to Polystyrene.

32. In establishing that the material injury to the domestic industry has been caused by the imports from the subject countries, the Authority holds that increase in imports from the subject countries at prices significantly below the non injurious price forced the domestic industry to keep its price to unremunerative levels and prevented the domestic industry from recovering its fair selling price, resulting in financial losses to the domestic industry. Further, the Authority notes that lower prices offered by an exporter forced the domestic industry to match the prices of imported goods

33. The purpose of anti dumping duties, in general, is to eliminate dumping which is causing injury to the domestic industry and to re-establish a situation of open and fair competition in the Indian market, which is in general interest of the country.

34. It is recognized that the imposition of anti dumping duties might affect the, price levels of the products manufactured using the subject goods and consequently might have some influence on relative competitiveness of these products. However, fair competition on the Indian market will not be reduced by the anti dumping measures, particularly if the levy of the anti dumping duty is restricted to an amount necessary to redress the injury to the domestic industry. On the contrary, imposition of anti dumping measures would remove the unfair advantages gained by dumping practices, would prevent the decline of the domestic industry and help maintain "availability of wider choice to the consumers of polystyrene. Imposition of anti dumping measures would not restrict imports from the subject countries in any way, and therefore, would not affect the availability of the product to the consumers.

35. To ascertain the extent of Anti-dumping duty necessary to remove the injury to the domestic industry, the Authority may rely upon reasonable selling price of Polystyrene in India for the domestic industry, by considering the optimum cost of production at optimum level of capacity utilization for the domestic industry.

36. The landed value have been determined on the basis of weighted average export price of polystyrene from China, Hong Kong, Singapore and Thailand after adding the prevailing level of customs duties and one percent landing and two percent handling charges.

a Polystyrene originating in or exported from Hong Kong, Singapore and Thailand has been exported to India below normal value, resulting in dumping;