Government of India
Ministry of Commerce & Industry
(Department of Commerce)
New Delhi, the 22 August 2003
INITIATION NOTIFICATION
Subject: Initiation
of Anti-dumping Investigations concerning import of Propylene Glycol originating in or
exported from USA, Singapore, Korea RP and European Union
No.14/8/2003-DGAD
1. PRODUCT UNDER CONSIDERATION
The product under investigation in the present case is
Propylene Glycol – All grades. It is
manufactured from Propylene Oxide by
hydrating the product at a higher pressure and temperature which form a mixture of Mono,
Di and Tri-Propylene Glycol. Mono-Propylene Glycol (MPG), generally known Propylene glycol
is the principal product. The Propylene
Glycol is used for industrial applications like manufacture of polyester resin, industrial
anti-freezing applications and in pharmaceutical industries. This product is classified
under Customs Tariffs Code 29053200. Investigations
are being initiated with respect to product under consideration irrespective of the
classification under which they are being imported. Customs classifications are indicative
only and in no way binding on the scope of investigations.
2. DOMESTIC
INDUSTRY STANDING
The petition has been filed by M/s Manali Petrochemicals
Limited, Chennai. The petitioner is the sole producer of the subject goods in India and hence has
standing to file the petition in terms of
Rules 5(3) a of the Rules supra read with Rule 2(b).
3. COUNTRIES INVOLVED
The countries/territory involved in the present investigation
are USA, Singapore, Korea RP and European Union. (Hereinafter also referred to as subject
countries).
4. LIKE GOODS
The petitioner has claimed that goods produced by it are like
articles to the goods originating in or exported from subject countries. There is no
significant difference in the subject goods produced by the petitioner and those exported
from subject countries. Petitioner claims
that the two are technically and commercially substitutable. Therefore, for the purpose of present
investigation, the goods produced by the petitioner are being treated as Like Articles of
the product imported from the subject country within the meaning of the Rules, supra.
5. NORMAL
VALUE
The
petitioner has claimed normal value of subject goods in the subject countries/territory on
the basis of cost of production in the countries of origin. The estimated normal value has
been arrived at on the basis of international price of raw materials and other elements of
the cost has been estimated on the basis of data available with the petitioner. The
Authority has prima facie accepted the normal value of the subject goods in the USA, Korea
RP, Singapore and European Union on the basis of constructed cost of production after
addition of selling, general and administrative expenses along with reasonable profit as
per data made available by petitioner.
6.
EXPORT PRICE
The Petitioner has determined the
export price from the subject countries based on the transaction wise information, which
is culled from the secondary data sources, i.e. M/s International Publishing House, Mumbai
whose data is based on the Customs Daily List. Adjustments have been made on account of
ocean freight, marine insurance, inland transportation in the country of exports, port
handling and port charges to arrive at the Export Price at ex-factory level.
7.
DUMPING MARGIN
There is, prima facie, submitted
evidence that Normal Value of the subject goods in the subject countries is significantly
higher than the ex-factory export price indicating prima facie that the subject goods are
being dumped by exporters from the subject countries.
8. INJURY AND CAUSAL LINK
Petitioner has furnished information on various parameters
relating to injury. Parameters such as
increase in volume of imports from subject countries, decline in the import prices, rise
in the share of the subject countries in relation to total demand, decline in the markets share of the petitioner,
reduction in the domestic sales, low return on investment, decline in the profitability,
negative cash flow, price undercutting and price underselling, prima facie, indicate
collectively and cumulatively that the domestic industry has suffered material injury on
account of dumping of subject goods from subject countries.
9.
INITIATION OF ANTI DUMPING INVESTIGATIONS
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 country.
10.
PERIOD OF INVESTIGATION
The Period of Investigation for the
purpose of the present investigation 1st April 2002 to 31st march
2003.
11.
SUBMISSION OF INFORMATION
The exporters in the subject
countries and the importers in India known to be concerned with this investigation are
being addressed separately to submit relevant information in the form and manner
prescribed and to make their views known to the Designated Authority, Directorate General
of Anti Dumping & Allied Duties, Ministry of Commerce & Industry, Department of
Commerce, Government of India, Udyog Bhavan, New Delhi – 11 00 11.
As per Rule 6(5) of Rule supra, the
Designated Authority is also providing opportunity to the industrial users of the article
under investigation, and to representative consumer organizations who can furnish
information which is relevant to the investigation regarding dumping, injury and
causality. Any other interested party may also make its submissions relevant to the
investigation within the time limit set out below.
12.
TIME LIMIT
Any information relating to the
present investigation should be sent in writing so as to reach the Authority at the
address mentioned above not later than forty days from the date of publication of this
notification. The known exporters and importers, who are being addressed separately, are
however required to submit the information within forty days from the date of the letter
addressed to them separately. It may be noted that no request, whatsoever, shall be
entertained for extension in the prescribed time limit.
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. In case where an interest 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)
ADDITIONAL SECRETARY
& DESIGNATED AUTHORITY