4. The Taipei Economic & Cultural Centre and Embassies of Indonesia, Thailand and Malaysia in New Delhi were informed about the initiation of the investigations in accordance with rule 6(2) with a request to advise the exporters/ producers from their country to respond to the questionnaire with in the prescribed time. A copy of the letter, petition and questionnaire sent to the exporters was also sent to them, alongwith the list of known exporters and producer from Indonesia, Taiwan, Thailand and Malaysia.
5. The questionnaire was also sent to the following importers of POY in India calling for necessary information in accordance with rule 6(4);

1. Al-Karam Texturising , Surat;2.Aryama Polytex Limited, Vadodra;

3. Dynamic Textile Ind.Ltd.,Bharuch 4.J.M.Textiles Ltd, Mumbai

5. Krishna Synthetics P.Ltd.,New Delhi. 6.Regal Crimptex Ltd., Silvassa

4. Additional information regarding injury was sought from the petitioner, which was also received;
5. The Authority made available non-confidential version of the evidence presented by various interested parties in the form of a public file kept open for inspection by the interested parties;
6. The Authority sought and verified information deemed necessary for the investigation.
7. The Authority also conducted cost investigation (based on the information received) and worked out optimum cost of production / cost to make and sell in India on the basis of Generally Accepted Accounting Principles.
8. The investigations covered the period of 1^st January, 1999 to 31^st December, 1999 (12 months);
9. *** in this notification represents information furnished by an interested party on confidential basis and so considered by the Authority under the Rules;
10. All interested parties were provided opportunity to present their views on issues under consideration before the Authority. A public hearing was held on 23.1.2001. All interested parties who submitted orally were requested to submit their written submission latest by 31.1.2001 and rejoinder thereon by 7.2.2001.

BVIEWS OF THE PETITIONERS, EXPORTERS, IMPORTERS, AND OTHER INTERESTED PARTIES
2.0 Following interested parties submitted their written submissions and major issues raised by them in brief is as under:-
2.1 M/s. Association of Synthetic Fibre Association (ASFI), New Delhi,- Petitioners :-

1. They have stated that in the normal circumstances, Designated Authority holds hearing only after Preliminary Findings. All the interested parties were required to present their views only with regard to the fundamental issues raised by the petitioner at the time of the oral hearing. The Designated Authority should not take into account any other issue, which has been raised by any interested party at the time of this oral hearing.
2. Exclusion of Korea RP is unjustified and the investigations were required to be extended to country-Korea RP also.
3. M/s. Indorama Synthetics & M/s. DCL Polyesters is required to be included within the scope of the domestic industry in the on-going investigations.

(a) They have stated that there are 10 POY producers in Indonesia where four of them, namely, Pan Asia, Indorama, GT Petrochem, Polysindo-Eka Parkasa have exported their product to India.

(b) The decision of Designated Authority to grant extension upto December 26, 2000 was not communicated directly to the companies, only communicated to Indonesian Embassy. The information could only reach the company on 2^nd January, 2001.

(c) The petition by the Domestic Industry does not show any evidence of dumping, injury and causal link between dumping and injury. They have requested the Authority to drop the anti-dumping investigation.

They have stated that there is no substantiated evidence to prove that exports of POY originated in Thailand have caused injury to the Indian producers of the product concerned. They have requested the Authority to terminate the anti-dumping investigation

3.0 Examination by the Authority:

1. As regards to arguments on delay of intimation/initiation notification and request for extension of time; delay in transmission letter cannot be a valid reason for seeking extension. The Indian rules as also WTO agreement clearly provides that the letters shall be deemed to have been received within one week of their dispatch.
2. The Designated Authority upon initiation of investigation has addressed the concerned Governments through their embassies in India. In fact the Authority have notified Government of Indonesia and Govt. of Thailand through their embassies in New Delhi, before proceeding to initiate the investigations in accordance with Indian rules.
3. As regards to arguments on representativeness of the complaintby some interested parties, it is clarified that the letter of support as also the petition unambiguously states that the support by M/s.Reliance is unconditional and the company has agreed to provide any further information which the Designated Authority may require in the present matter. The company has since filed the subsequent information also required by the Designated Authority, which fully establishes that the company is participating in the present investigations.
4. As regards to exclusion of Indorama Synthetics related company, it is clarified that the Designated Authority has been provided a discretion to retain or exclude a related company from the purview of the Domestic industry under the amended rules. M/s. DCL Polyesters were found ineligible to form the part of domestic industry under the rules as they are importers of the allegedly dumped articles themselves, as brought out in the initiation notice. The DA has decided to exclude M/s.Indorama and DCL for the purpose of investigation.
5. As regards to argument that material exported by Taiwanese exporter is not a POY and same is by-product, the Authority notes that the Taiwanese exporters have stated that they produce as a part of POY production, quality like AA or A1 or A2 quality. The production of B,C,or D quality have been stated as by-products. Authority notes that the Taiwanese exporters have not furnished adequate informationevidences with respect to these alleged by-products in terms of the followinggiving full description of the article::
6. Full description of the articles given on the commercial invoice

e;-customs clarifications on bill of entry;

Raw material content -raw material content of the productof the product and where the same is different from the raw material content of ‘POY’;

-dDifference in manufacturing process and technology for producing ‘main product’ and ‘by-products’P-Plant and machinery required to produce ‘main product’/’by-product’;

-Functions and uses of the ‘by-product’ and how the same are different from the ‘main product’;

In absence of the above information, Authority doesnot consider appropriate to accept the claims of the exporters at this stage.

C EXAMINATION OF ISSUES RAISED

4.0 The submissions made by the petitioner, exporters and importers to the extent they are relevant under the Rules and have a bearing upon the case, have been examined and dealt with at appropriate places hereunder.

D PRODUCT UNDER CONSIDERATION

5.1 The Product Under Consideration in the present investigation is Partially Oriented Yarn, originating and exported form Indonesia, Taiwan, Thailand and Malaysia . Partially Oriented Yarn is generally known as "POY" in the commercial and market parlance and has been referred to as POY in this investigation. POY is a yarn of polyester and is made in wide range from 50 Denier to 530 Denier to meet the requirement of different segments. Denier relates to the fineness of the yarn, lower the denier, finer the yarn. POY is an intermediate, which is subject to further processes (e.g. texturing or draw-twisting) to make it suitable for weaving or knitting into fabrics. POY is different form PFY (having custom classification 5402.43) and PFY is not within the scope of the present investigations.

5.2 The POY is classified under Chapter 54 of the Customs Tariff Act. POY is also classified in chapter 54 of the Customs Act. Complete dDescription of Chapter 54,in so far as it concerns which includes POY as per Customs Tariff Act is as follows:

The classification is , however, indicative only and is in no way binding on the scope of the present investigation.

5.3 Authority notes that no arguments have been raised by any interested parties disputing that the POY produced by the petitioners and the POY produced and exported by the exporters are different with regard to product under consideration.

E LIKE ARTICLES:

6.1 Rule 2(d) of the Anti dumping Rules specifies that "Like Articles" means an Article, which is identia\cal or alike in respects to the product under investigation or in the absence of such an Article, another article, having characteristics closely resembling those of the articles under examination;

6.2 The petitioners have claimed that there is no known difference in the goods produced by the participating companies in particular and by the Indian industry in general & POY exported from the subject countries which can have an impact on price. In fact, the participating companies are exporting POY to a number of the countries in the world, including Brazil, Mexico, Argentina, etc. POY produced by Indian industry and imported from these countries are similar in terms of characteristics such as physical & chemical characteristics, manufacturing process & technology, functions & uses, product specifications, pricing, distribution & marketing and tariff classification of the goods. The two are technically and commercially substitutable. The consumers have used the POY imported from these countries and POY produced by the domestic industry interchangeably. POY produced by the participating companies and imported from these countries is to be treated as like articles under the anti-dumping rules. There is no significant difference in the technology and the production process adopted by the participating companies and by the producers in subject countries. However, every producer fine tunes its process as per available necessities and available facilities.There is no argument raised by any interested party contrary to the above claim of petitioners.

In view of the above, the Authority holds that POY being produced by the domestic industry and those being imported form the subject countries are used interchangeably and thus are commercially and technically substitutable and therefore, are Like Articles within the meaning of the Rules;

F DOMESTIC INDUSTRY

7.1 Petitioners have claimed that there are more than 34 producers of POY in India who have created capacity for POY production. The petition is filed by ASFI and is supported by seven participating companies viz. Reliance, IndoRama; JCT, Sanghi, Century, Reymond, DCL,. Out of seven participating petitionerscompanies, M/s DCL Polyesters hasve been excluded as they were importers of subject goods and M/s Indo Rama Synthetics were excluded as they were found to be related party at the stage of initiation. The production statistics of petitioners and other producers are as under:-:

As seen from the above, the Participating companies Petitioners accounted for a major proportion of 54.15 % out of total production duringproduction during the period of investigation as per the data submitted by them..

7.2 The Authority therefore holds notes that the petitioners satisfy the standing to file the present petition and the Participating companies therefore constitute "Domestic Industry" and have the standing to file the present petition under the Rules.

G DUMPING

8.0 NORMAL VALUE EXPORT PRICE AND DUMPING MARGIN AND EXAMINATION BY THE AUTHORITY IS DISCUSSED HEREUNDER.

8.1. Under Section 9A (1)(c), normal value in relation to an article means:

1. "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
2. 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 sales in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either-

1. comparable representative price of the like 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
2. the cost of production of the said article in the country of origin alongwith reasonable addition for administrative, selling and general costs, and for profits, as determined in accordance with the rules made under sub-section (6):

8.2. Exporters Views

8.3. M/s. Chia Hsin Food & Synthetic Fibre Co.Ltd. (CHFSF), Taiwan

4. M/s. Nanya Plastics Corpn., Taiwan

8.5. M/s Tuntex Distinct Corporation, Taiwan ::

The exporters hasve exported subject goods to India during period of investigation. They have stated that they have exported A,B,C, W, Electricity and Technical grades POY to India . They have furnished information with regard to Domestic sales and Export sales in the prescribed format.

Normal Value:The exporter has claimed that they have produced A,B,C, W, Electricity and Technical grades POY. Comparison of domestic selling prices with costs claimed showed that the company has made substantial losses in respect of all the types/grades. Accordingly, the normal value hasnormval has been determined on the basis of cost of production claimed by the company, suitably adjusted for reasonable profits. Normal Value has been determined based on the domestic prices furnished and adjustment as claimed by the company. Accordingly, Authority assesses the normal valuedomestic sales prices at ex-factory level at US $ *** 743/Kg.

Export Price:The exporter has claimed that they have exported only A & B grades POY to India. Export Price has been determined based on the export prices furnished and adjustment as claimed by the company. Accordingly Authority assesseds the export sales prices at ex-factory level at US $ *** /Kg.

8.6. M/S TUNG HO SPINNING WEAVING & DYEING CO LTD, TAIWAN.

Normal Value: The exporter has claimed that they have exported around thirteen grades of POY produced by them and have not furnished corresponding domestic prices for many grades sold to India. In the circumstances domestic prices with regard to other grades sold in domestic market has been based on ex-factory unit prices indicated by the company in Domestic price structure statement. Normal Value has been determined based on the information furnished and adjustment as claimed by the company. Accordingly Authority assesseds the domestic sales prices at ex-factory level at US $ ***/Kg.

Export Price: The exporter has claimed that they have exported some thirteen grades of POY to India. Export Price has been determined based on the export prices furnished and adjustment as claimed by the company, after adjustingeleminating undumped transactions. Accordingly Authority assesseds the export sales prices at ex-factory level at US $ *** /Kg.

8.7 M/s HUALON CORPORATION, TAIWAN

Normal Value :The exporters have indicated average monthly domestic price for two grade of POY exported to India during February 99and September, 1999. Authority notes that the average domestic sales price well below the factory cost during the period of investigation. From tThe company's B/S Annual Report for 1998/1999 also indicate loss incurred in the major fibre business. The information furnished with respect to factory cost cannot be relied upon for determination of normal value. In view of the above, the Authority relied upon the information furnished by the domestic industry with respect to normal value. Accordingly, Authority assessed the domestic sales price at ex-factory level based on factory cost at US $ *** /Kg

Export Price :The exporters have indicated average monthly export price for two grades of POY exported to India during the period February and September,99. Export Price has been determined based on the export prices furnished and adjustment as claimed by the company. Accordingly Authority assesses the export sales prices at ex-factory level at US $ *** /Kg.

8. M/S CHIA HSIN FOOD AND SYNTHITIC FIBER CO LTD

Normal Value:The exporter has claimed that they have exported six grades of subject goods produced by them and have furnished corresponding domestic prices for few months. However, Authority notes that the monthly average domestic sale price furnished is well below the cost of production during the period of investigation. Accordingly, the Authority assesses the average domestic sales price at ex-factory level based on factoryfactory cost for export sales at US $ *** /Kg.

Export Price :The exporter has claimed that they have exported around six grades of subject goods, exported by them and have furnished monthly average export price for exports during the period of investigation. Export Price has been determined based on the export selling prices furnished and adjustment as claimed by the company. Accordingly, Authority assesseds the export sale prices at ex-factory level at US $*** /Kg.

8.9. M/S CHINA MAN MADE FIBER CORPORATION TAIWAN.

Normal Value: The exporter has claimed that they have exported eleven grades POY produced by them and has, however, furnished domestic prices for only two grades. Domestic prices with regard to other grades sold in domestic market has been based on ex-factory unit prices indicated by the company,y, in Domestic sales price structure statement. Accordingly , Normal Value has been determined based on the information furnished and adjustment as claimed by the company. Accordingly Authority assesseds the domestic sales prices at ex-factory level at US $ ***/Kg.

Export Price: The exporter has claimed that they have exported eleven grades of POY to India. Export Price has been determined based on the export prices furnished and adjustment as claimed by the company. Accordingly Authority assesses the export sales prices at ex-factory level at US $ *** /Kg.

THAILAND

8.10. M/S SUNFLAG (THAILAND) LTD

Normal Value :The exporter has furnished monthly average domestic price for the period Jan – Jun,99 and Jul – Dec,99. Domestic prices for subject goods sold in domestic market has been based on ex-factory unit prices indicated by the company, in Domestic sales price Structure statement. Accordingly , Normal Value has been determined based on the information furnished and adjustment as claimed by the company. However, with regard to adjustment on account of interest, it is found that the amount of adjustment claimed is significantly higher as compared to the costs shown on account of interest, selling & administrative expenses in the cost of production statement. Thus, the claim on account of interest does not appear justified and has not been allowed, pending further investigations. Accordingly Authority assesses the domestic sales prices at ex-factory level at US $ ***/Kg.

Export Price: The exporter has furnished monthly average export price for the period Jan – Jun,99 and Jul – Dec,99 exported to India. Accordingly , Export Price has been determined based on the information furnished and adjustment as claimed by the company. Accordingly, Authority assesses the export sales prices at ex-factory level at US $ ***/Kg.

8.11. M/S TUNTEX (THAILAND) LTD

Normal Value: The exporter has claimed that they have exported two types of subject goods produced by them in Colour and Semi dull grades and have furnished corresponding average monthly domestic price for grades sold to India. They have claimed adjustment towards commission only for semi-dull grade and have not claimed nil for colour grade, which has been allowed. The company have claimed adjustment towards ‘before FOB’ differently for different types with respect to semi dull as well as colour grades. The company has not substantiated in any manner the need for differential claims between the two types i.e. A & B in semi dull or in colour grades. In the circumstances adjustments have been considered uniformly for A & B types. Accordingly , Normal Value has been determined based on the information furnished and adjustment as claimed by the company. However, it is found in case of some sales that the same are below cost of production. The normal value in these cases has been based on cost of production claimed by the company. Accordingly, Authority assesses the domestic sales prices at ex-factory level at US $ ***/Kg.

Export Price: The exporter has claimed that they have exported two types of subject goods produced by them in Colour and Semi dull grades and have furnished corresponding average monthly sales price for grades sold to India. The company have claimed adjustment towards ‘Commission; 'after FOB' & ‘before FOB’ differently for different types with respect to semi dull as well as colour grades. The company has not substantiated in any manner the need for differential claims between the two types i.e. A & B in semi dull or in colour grades. In the circumstances adjustments have been considered uniformly for A & B types. Accordingly, Export Price has been determined based on the information furnished and adjustment as claimed by the company. Accordingly, Authority assesses the export sales prices at ex-factory level at US $ ***/Kg.

12.INDO POLY (Thailand ) Ltd.

Normal Value: The exporter has claimed that they have exported two types of subject goods produced by them under OFF grade and A grade and have furnished corresponding average monthly domestic price for grades sold to India. The company has not substantiated in any manner the need for differential claims between the two types i.e. A & B grades. The company has furnished monthly average factory cost statement which indicate losses during first few months of period of investigation also company has provided two sheets of extracts of B/s and P & L Account and have not furnished complete information. Further it is noted that the Financial Accounts indicates losses during the year 1999 and 1997. The information furnished with respect to sales price structure to countries other than India, there were no sales during majority of months comparable to sales effect to India. Correlation of the information given by the exporter with other exporters and published prices in ICIS-LOR with regard to major raw materials, PTA and MEG indicates that theeth costs claimed by the company on account of raw materials are unreliable. It would not be appropriate to adopt domestic prices or export prices to other countries, as it is not established that the sales are in the ordinary course of trade. Further, the cost of production claimed itself being unreliable, the same can not also be used for determination of normal value. In the circumstances Authority has relied on the data furnished by the domestic industry with regard to constructed cost of production. Accordingly , Normal Value has been determined based on the information furnished and available information on record.. Accordingly, Authority assesses the domestic sales prices at ex-factory level at US $ ***/Kg.

Export Price: The exporter has claimed that they have exported two types of subject goods produced by them in OFF grade and A grade and have furnished corresponding average monthly sales price for grades sold to India. The company have claimed adjustment towards 'after FOB' & ‘before FOB’ differently for different grades. The company has not substantiated in any manner the need for differential claims between the two grades i.e. A & B grades. In the circumstances adjustments have been considered uniformly for A & B types. Accordingly, Export Price has been determined based on the information furnished and adjustment as claimed by the company. Accordingly, Authority assesses the export sales prices at ex-factory level at US $ *** /Kg.

8.13. M/s. Polisindo Eka Perkasa Tbk, Indonesia :

Normal Value: The company has furnished a balance sheet for the year 1998 & 1999. The analysis of the same shows huge losses incurred during both years. Accordingly, the details of sales furnished for domestic market cannot be considered to be in the ordinary course of trade. HoweverFurther, factory cost as furnished cannot be relied upon for determination of normal value, as the same also are inadequate and appear unreliable. In view of the above, the Authority relied upon the information furnished by the domestic industry with respect to normal value for Indonesia at US $ *** Per Kg., for the purpose of preliminary findings.

Export Price: The exporter has furnished monthwise average export price for grade 124/36 SDC-A to India. Export price has been determined based on the export prices furnished and adjustments as claimed by the company. Accordingly ,Authority assesses the export price at ex-factory level at US$*** per kg.

8.14. M/S PT GT PETROCHEM INDUSTRIES Tbk, Indonesia:

Normal Value: The company has not furnished complete and adequate information in the form and manner prescribed in the questionnaire. The sales price structure statement for the sales to India though indicate profits, for ‘ other countries than India’, indicates losses. The company has not furnished Balance Sheet, Profit and Loss Account for the period of investigation and past years. In the circumstances the information on normal value furnished by the company is not reliable. In view of the above, the Authority relied upon the information furnished by the domestic industry with respect to normal value for Indonesia at US $ *** Per Kg.

Export Price: The exporter has furnished monthwise average export price for grade 125D/115D sales to India. Export price has been determined based on the export prices furnished and adjustments as claimed by the company. Accordingly, Authority assesses the export price at ex-factory level at US$*** per kg.

15. MALAYSIA

There has been no response from any of the exporters/ interested parties from Malaysia. In the circumstances, Authority has relied on the information furnished by the petitioners with respect to constructed normal value and export price. Accordingly, Authority assesseds the normal value at US $ ***/Kg and export price at ex-factory level at US$ *** / kg.

Determination of Dumping Margin in case of Non-cooperative Exporters:

The Authority notes that no information in the prescribed proforma has been filed by any other exporter from subject countries except for exporters discussed in above paragraphs. The Authority has, therefore, proceeded on the basis of Rule 6(8) i.e. with the best information available.

Accordingly, the Normal Value for ‘other exporters’ from a particular country has been based on the highest normal value assessed amongst the cooperative exporters from that country and while for the Export Price least export price assessed amongst the cooperative exporters from that country for the purpose of preliminary findings.

8.176. Dumping Margin: The Rules relating to comparison provides comparison of normal value and export price provides as follows:

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

I INJURY:

9.0 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;

9.1 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. Such assessment can be, however, made only if it is determined that:

1. 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 like article in India, and
2. 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.

9.2. Substantial increase in import from the subject countries in absolute term:

The imports of POY from the subject countries have increased in absolute terms. The Annexure-II (ii) of the Indian Anti-dumping rules provides as under:-

"while examining the volume of dumped imports, the said authority shall consider whether there has been a significant increase in the dumped imports, either in absolute terms…"

In the instant case, the imports of POY from the subject countries have increased significantly in absolute terms, as may be seen from the table below:

It may be seen from the above table that there is significant increase in imports of POY in India from subject countries.

9.3. Significant decline in export price:

More significant withthat the volume of imports is the price effect of imports. The exporters from the subject countries have reduced the prices significantly, as may be seen from the following table:

9.4 Production of the domestic industry:

The production of the domestic industry has increased over years and during period of investigation. However, the industry has been forced to sell the product at significantly reduced prices, as discussed separately.

9.5. Sales volume of the petitioner (s)

Authority notes that the sales volume of the industry have declined over the period, the industry has been forced to reduce its prices significantly at the cost of its profitability in view of the dumped imports.

9.6. Selling price

The industry has been forced to reduce its selling prices as may be seen from the following table, in view of cheap imports in the market:

Indexed figures considering 1997-98 as 100

It is noted that though the industry attempted to marginally increase the prices in the current year in view of steep increase in the prices of the basic input, PTA, the increase was far lower than the increase in the cost of production, as may be seen from the information on costing separately provided in the confidential version.. Further, the import volumes increased substantially with the marginal increase in the prices by the domestic industry, which forced the industry to again reduce the prices.

9.7. Price undercutting

The Authority notes that the dumped imports have forced the domestic industry to reduce its prices in spite of increase in the cost of production. The landed value of the imported material is significantly below the selling prices of the domestic industry. The imports are thus causing severe price undercutting in the Indian market.

9.8. Profitability

The Authority notes that the industry has been forced to reduce its selling prices much below its cost of production, resulting in financial losses. The losses have increased in the current year in view of substantial increase in the cost of production and inability of the industry to increase prices in view of lower landed prices.

9.9. Conclusions:

1. The dumping margins from the subject countries are significant and volume of imports are more than de-minimus;
2. Imports from subject countries have increased significantly in absolute terms, as also relative to imports of POY in India;
3. The export price from the subject countries has declined significantly., far below the decline which can be attributed to reasonable reduction in the cost of production. In fact, the cost of production/ export price should have increased for the exporters from the subject countries in view of increase in the PTA/DMT/MEG prices, whereas the export price has reduced in the reference period;
4. Selling price of the domestic industry have declined significantly, . The decline in the selling prices is in far more than the decline in the cost of production, tthus resulting in declining contribution margin per unit of production.
5. The imports were causing severe price undercutting and prevented the domestic industry from effecting legitimate price increases;
6. The domestic industry has been forced to reduce prices significantly, and the industry could not increase its prices in view of cheaper imports.
7. It may thus be seen that the industry has suffered material injury.

J CAUSAL LINK :

1. The imports from the subject countries have increased substantially. As a direct consequence, the market share of the imports increased whereas the market share of the domestic industry declined.
2. Imports were significantly undercutting the prices in the Indian market.
3. Cost of production of the domestic industry increased due to increase in the raw material prices. However, the domestic industry could not increase its prices in view of dumped imports, resulting in increasing losses.
4. The landed price of imported material was significantly below the selling prices of the domestic industry, causing severe price undercutting and price suppression/depression in the market.
5. The dumped imports prevented the domestic industry from recovering optimum cost of production.
6. The imports from the subject countries are being made at dumped prices. Imports of POY from various countries during the period of investigation is as under:

Source : DGCI&S figures (provisional)

K Indian Industry’s Interest and other issues:

2. To ascertain the extent of anti-dumping duty necessary to remove the injury to the domestic industry, the Authority relied upon reasonable selling prices of subject goods in India for the domestic industry, by considering the optimum cost of production at optimum level of capacity utilisation for the domestic industry.

L CONCLUSIONS;

12.0 The Authority, after considering the foregoing, concludes that :

12.2 The Indian industry has suffered material injury;

14. Accordingly, the Designated Authority has therefore, decided to recommend provisional Anti-dumping Duty equal to the margin of dumping, on POY originating from subject countries. The Anti-dumping Duty shall be the amounts mentioned in column 3 below from the date of notification to be issued in this regard by the Central Government, on all imports of POY originating in or exported from subject countries falling under Chapter 54 of the Customs Tariff, pending final determination.

15.0 Landed value of imports for the purpose shall be the assessable value as determined by the customs under the Customs Act, 1962 and all duties of customs except duties levied under Section 3, 3A,8B and 9, 9A of the Customs Tariff Act, 1975.

M FURTHER PROCEDURE:

16.0 The following procedure would be followed subsequent to notifying the preliminary findings:-

1. The Authority invites comments on these findings from all interested parties and the same would be considered in the final finding;
2. Exporters, importers, petitioner and other interested parties known to be concerned are being addressed separately by the Authority, who may make known their views, within forty days from the date of the dispatch of the letter. Any other interested party may also make known its views within forty days from the date of publication of these findings;
3. The Authority would conduct further verification to the extent deemed necessary;
4. The Authority would disclose essential facts before announcing final findings.