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

INITIATION NOTIFICATION

New Delhi, the 16th April, 2002

Subject: Initiation of anti-dumping investigation concerning import of Citric Acid into India originating in or exported from Indonesia and Thailand.

14/11/2002-DGAD- M/s. Citurgia Biochemicals Ltd., have filed a petition for initiation of anti dumping investigation concerning the import of Citric Acid from Indonesia and Thailand 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 Citurgia Biochemicals Ltd., on behalf of the domestic industry. Other producers of Citric Acid in India are M/s. Bharat Starch Industries Ltd. However, M/s. Bharat Starch Industries Ltd., was lying closed in the years 1999-2000 and 2000-01 and recommissioned their Citric Acid Plant only in the third week of December, 2001. As per the evidence available, M/s Citurgia Biochemicals Ltd., have the standing to file the petition on behalf of domestic industry as per Rule 5 of the Anti Dumping Rules.

3. Product under consideration: The product under consideration is "Citric Acid", also known as Citric Acid Monohydrate. Citric Acid is a basic chemical normally classified under Customs sub-headings 2918.14 of the Custom Tariff Act. The Custom classification is indicative only and not binding on the scope of investigation. Citric Acid is used as preservative in food, soft drinks, confectionery, drugs, in textile dyeing and printing industry and has other industrial uses like in boiler cleaning etc..

4. Countries involved: The countries involved in present investigation are Indonesia and Thailand (hereinafter referred to as subject countries).

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

6. Normal Value: The petitioners have claimed normal value in the Indonesia and Thailand 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 subject goods in subject countries.

7. Export Price: The export price has been claimed on the basis of the data obtained from Directorate General Commercial Intelligence & Statistics, Calcutta and compiled from secondary sources. Price adjustments have been claimed on account of ocean freight, marine insurance, inland transportation in the country of export, port handling and port charges, etc., to arrive at net export price. There is sufficient evidence of export price and the adjustments claimed for the subject goods from subject countries.

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

9. Injury and Causal Link: The petitioner have furnished evidence regarding the injury having taken place as a result of the allegedly dumped imports in the form of fall in their market share because of increased volume of dumped imports, decline in the sales volume and utilisation of capacity, lost sales and substantial decline in profitability for the domestic industry. There is sufficient prima facie evidence of the material injury being suffered by the petitioner caused by dumped imports from subject countries.

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. Period of Investigation: The Period of Investigation for the purpose of present investigations is 1st April 2001 to 31st December 2001.

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:

The Designated Authority

(Directorate General of Anti-Dumping & Allied Duties)

Government of India

Ministry of Commerce & Industry

Udyog Bhavan, New Delhi-110011

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.

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.

15. 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.

L.V. Saptharishi
Designated Authority

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