GOVERNMENT OF INDIA

MINISTRY OF COMMERCE & INDUSTRY

DEPARTMENT OF COMMERCE

(DIRECTORATE GENERAL OF ANTI-DUMPING & ALLIED DUTIES)

 

NOTIFICATION

 

 New Delhi, the 14th September 2004

Initiation

(Mid-term Review)

Subject:        Initiation of Mid-term Review of anti-dumping duty imposed on imports of Hydroxyl Amine Sulphate (HAS) originating in or exported from the EU,USA,  and Japan.

 

 

No. 15/23/2004-DGAD - WHEREAS having regard to the Customs Tariff Act, 1975 as amended in 1995 and the Customs Tariff (Identification, Assessment and Collection of Duty or Additional Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (herein after referred to as the Rules), vide Notification Number 53/1/99-DGAD dated 1st March, 2001 the Designated Authority (herein after referred to as the Authority) notified its final findings recommending definitive antidumping duty on import of Hydroxylamine Sulphate (HAS) (hereinafter referred to as subject goods) originating in or exported from European Union European Union,USA and Japan (hereinafter referred to as subject countries).

 

AND WHEREAS definitive antidumping duty was imposed on the subject goods vide Customs Notification No. 31/2001-Customs dated 28th March, 2001.

 

Request for Review

 

2.         WHEREAS the Rules require the Authority to review from time to time, the need for continued imposition of Anti Dumping Duty and if it is satisfied, on the basis of positive information received by it that there is no justification for continued imposition of such duty, the authority may recommend to the central government for its withdrawal. Notwithstanding the above provision the authority is required to review, on the basis of positive information submitted by any interested party substantiating the need for a review, provided that a reasonable period of time has elapsed since the imposition of the definitive antidumping duty, whether continued imposition of the duty is necessary to offset dumping, whether the injury would be likely to continue or recur if the duty were removed or varied, or both.

 

3.         In terms of the above provision one of the exporters from the European Union i.e. M/s BASF Limited, Germany has filed a request, through the European Commission, for a changed circumstances mid-term review of the antidumping duty in force.

 

Grounds for Review

 

4.         The applicant claims that the conditions of both, dumping and injury have changed substantially requiring a review of the antidumping measure in force. The exporter has inter alia claimed that there are no direct exports for end use except against Advance License Scheme by M/s BASF to India since the imposition of the anti-dumping duty. It has   also been claimed that the AD measures have not led to any improvement in the share of the petitioner in the domestic consumption of HAS.

 

5.         It is further stated that the domestic users of HAS have not purchased HAS from Deepak Nitrite (Domestic Industry) due to low priced exports from Belarus. It has been claimed by the applicant that despite the imposition of AD Duty, the position of Domestic Industry has not improved. The applicant has claimed that the circumstances have changed due to decrease in domestic demand for HAS which is mainly used in the production of antibiotic, used in the production of antibiotic SMX/SMZ. It is also claimed that a number of Indian companies have abandoned the SMX/SMZ market due to intense competition from Chinese exporters in the World Market for antibiotics and reduction in price. The consolidation of two of its existing divisions (Sodium Nitrite and sodium Nitro-aromatics) of M/s Deepak Nitrite Ltd. will increase its efficiency by cutting costs. The applicant has claimed that this restructuring will affect production and cost of HAS.  Therefore, the applicant claims that no dumping is taking place from the European Union and the domestic industry is not suffering any injury on account of the imports from the European Union.

 

Initiation

 

6.         Having regard to the information provided by the applicant indicating changed circumstances necessitating a review of the measure in force, the Designated Authority now considers that a mid-term review of the Anti Dumping Duty is appropriate in view of the changed circumstances, in terms of the provision of Section 9A (5) of Customs Tariff (Amendment) Act 1995 read with Rule 23 supra.

 

7.         Having decided to review the final findings notified vide Notification No. 53/1/99-DGAD dated 1st March,2001, the Authority hereby initiates the investigations in terms of the Rules, to review whether continued imposition of the duty on imports of HAS originating in or exported from the USA, Japan and European Union is necessary to offset dumping, whether the injury would be likely to continue or recur if the duty were removed or varied, or both.

 

Product under Consideration

 

8.         The product involved in the original investigation and the current review is  Hydroxylamine Sulphate(HAS) falling under Chapter 28 of the Customs sub-heading of the First Schedule to the said Customs Tariff Act. This classification however, is indicative only and in no way binding on the scope of the present investigation.

 

Procedure

 

9.         The investigation will determine whether continued imposition of the duty is necessary to offset dumping if any, whether the injury is likely to continue or recur if the duty were removed or varied, or both.

 

(i)                 The review will cover all aspects of Notification No.53/1/99-DGAD dated 1ST March,2001.

(ii)               The period of investigation for the purpose of this review will be 1st April 2003 to 31st March 2004. However, injury analysis shall cover the years from 2000-01 to 2003-04.

(iii)             The countries involved in this investigation are the European Union,USA and Japan.

 Submission of Information:

 

10.       The exporters in subject countries, their governments through their embassies in India, the importers and users in India known to be concerned and the domestic industry are being addressed separately to submit relevant information in the form and manner prescribed and to make their views known to the:

 

The Designated Authority
Directorate General of Anti-Dumping and Allied Duties
Ministry of Commerce and Industry

Department of Commerce
Udyog Bhavan
New Delhi-110011.

Fax: 91-11-23014418

.

11.       Any other interested party may also make its submissions relevant to the investigation in the prescribed form and manner within the time limit set out below. Any party making confidential submissions before the Authority is required to file a non-confidential version of the same, for placing the same in the public folder for inspection by all other interested parties to the investigation.

 

Time Limit

 

11.       Any information relating to the present review and any request for hearing should be sent in writing so as to reach the Authority at the address mentioned above not later than forty days (40 Days) from the date of publication of this review notification. If no information is received within the prescribed time limit or the information received is incomplete, the Designated Authority may record its findings on the basis of the facts available on record in accordance with the Rules supra.

 

Inspection of Public File:

 

12.       In terms of Rules 6(7), any interested party may inspect the public file containing non-confidential version of the submissions made by other interested parties before the Authority. In case 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.

 

 

 

 

(Abhijit Sengupta)
Designated Authority

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