MINISTRY OF COMMERCE
DEPARTMENT OF COMMERCE
(DIRECTORATE GENERAL OF ANTI-DUMPING & ALLIED DUTIES)
NEW DELHI, THE 14th NOVEMBER, 2000
Sub: Anti-Dumping investigation concerning imports of Strontium Carbonate from Peoples Republic of China
18/1/2000-DGAD - Having regard to the Customs Tariff Act 1975 as amended in 1995 and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, thereof:
xii) Response/ information to the questionnaire/notification was filed by the following exporters/producers:
1. M/s Sinochem Hebei, Peoples Republic of China
2. M/s China National Chemical Construction Corporation, Peoples Republic of China
xiii) Response/information to the questionnaire/notification was filed by the following Importers/user Associations:
B . VIEWS OF EXPORTERS, IMPORTERS AND OTHER INTERESTED PARTIES
1. PETITIONERS VIEWS
b) ON DOMESTIC INDUSTRY
1. M/s TCM Ltd. is the only producer of Strontium Carbonate in India.
c) ON LIKE ARTICLE
e) ON INJURY
1. The imports from the subject countries have increased sharply which is affecting the domestic industry. The changes in the market share are as under :-
Year Production in India(MT) Import (MT)
1995-96 173.000 Nil
1996-97 51.500 501.425
1997-98 586.900 236.000
1998-99 330.000 1186.20
1999-2000 130.000 1041.80(2500)*
2. EXPORTERS VIEWS
1. M/s Sinochem Hebei has made the following submissions:--
2. M/s China National Chemical Construction Corporation has made the following submissions:--
3. IMPORTERS AND USER ASSOCIATIONS VIEWS
1. M/s Videocon Narmada Glass (A division of Videocon International Ltd., Bharuch) has made the following submissions:-
C. EXAMINATION BY AUTHORITY
The foregoing submissions made by the exporters, the importers, the petitioner and other interested parties have been examined, considered and dealt with at appropriate places in these findings to the extent these are relevant as per Rules and have a bearing upon the case.
The product under consideration in the present investigation is Strontium Carbonate originating in or exported from the subject country. Strontium Carbonate is a white inorganic chemical produced in both powder and granular form with chemical formula Sr CO3 and is used in the production of hard ferrite and colour TV glass shells. The product is freely importable under OGL and it is classified under Customs Sub-heading 2836.92 and 28369200 of ITC of the Customs Tariff Act, 1975. The classification is however, indicative only and is in no way binding on the scope of the present investigation.
The petitioner has claimed that goods produced by them and as classified by the Custom Tariff under the Head 2836.92 and under ITC as 28369200 have no substitute and that there is no significant difference in Strontium Carbonate produced by the domestic industry and that exported from China. The consumers of the product are using both the products without making any changes in their production process. Also according to the petitioners information there is no significant difference in the production process adopted by the petitioner and the producer in the subject country. The petitioner has, therefore, submitted that the domestic goods and imported goods from subject countries be treated as Like Article to the goods imported from the subject country within the meaning of the Rules.
The importer viz. M/s Videocon Narmada Glass Ltd. has submitted that the domestic producer does not supply goods of the quality as required by them and that it leads to certain quality problems as also illustrated in the foregoing para.
The authority notes that both the domestically produced and imported goods fall under the same custom and ITC Heading 2836.92 &28369200 respectively. Both the products are having the same chemical composition and have the same end use. Though the importer has highlighted the issues of quality, no evidence has been provided substantiating such submissions. Further any wastages or any quality adjustments have also not been quantified by the importer. The authority notes that quality aspects do not imply technical or commercial non-substitutability. Also the authority notes that in the past the importer has been sourcing its requirements from the domestic producer. In view of the above, the authority holds that both the domestically produced subject goods and those imported from the subject country are Like Article within the meaning of the Rules 2(d).
3. DOMESTIC INDUSTRY
The petition has been filed by M/s TCM Ltd. having registered office at P.B.No. 19, Kalamassery-6831014, Kerala. The authority holds that the petitioner is the sole producer of Strontium Carbonate in India and therefore, satisfies the standing to file the petition on behalf of the domestic industry as per Rule 5(a) and (b) and Rule 2(b).
4. NORMAL VALUE & EXPORT PRICE
Under Section 9A(1)(c), normal value in relation to an article means:
(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 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:-
(a) 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
(b) the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling and general costs, 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.
None of the exporters/producers in China have responded to the Questionnaire sent by the Authority. In accordance with the Anti-Dumping Rules as amended on 15.7.99, the Authority, therefore, considers it appropriate to reference the cost of production of the domestic producer with appropriate adjustments to the extent the information is available for constructing the normal value of the subject goods in the subject country. The constructed normal of the subject goods in the subject country value comes to ***$/MT.
None of the exporters/producers have responded to the questionnaire. However, one of the importers viz. M/s Videocon Narmada Glass Ltd. have provided details of the imports made by them during the POI and in the past 2 years. The authority has referenced the weighted average CIF value during the POI based on the response of the importer as also co-related with the data supplied by the petitioner and that obtained from DGCI&S. For evaluating the ex-factory export price of the subject goods, the authority has considered adjustments on ocean freight, ocean insurance, commission and port expenses to an extent of ***$/MT, ***$/MT ***% and ***$/MT respectively. The authority also notes that as per the sample invoices evidenced by the importer, the producer/exporter from China have extended credit to the Indian importers to an extent of *** days. The authority, therefore, has considered an adjustment to an extent of ***$/MT on the credit cost. The weighted average ex-factory export price of the subject goods comes to ***$/MT.
5. DUMPING-Comparison of Normal Value & Export Price
The rules relating to comparison 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 ex-works level, and in respect of sales made at as nearly 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 sale, taxation, levels of trade, quantities, physical characteristics, and any other differences which are demonstrated to affect price comparability."
The authority has carried out comparison of weighted average normal value with the weighted average ex-factory export price for evaluation of dumping margin.
All exporters/ producers
Dumping margin (%)
The dumping margin for exporters comes to 74.56%.
6. INJURY AND CAUSAL LINK
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.
For the examination of the impact of the dumped imports on the domestic industry in India, indices having a bearing on the state of the industry as production, capacity utilisation, sales quantum, stock, profitability, net sales realisation, the magnitude and margin of dumping, etc. have been considered in accordance with Annexure II(iv) of the rules supra.
The Authority observes the following
7. INDIAN INDUSTRYS INTEREST & OTHER ISSUES
It has been argued by certain interested parties that with the levy of anti-dumping duties, will affect the user industry as they will be at mercy of the domestic industry. It is also argued that the quality of the goods supplied by the domestic industry is inconsistent in quality and does not meet the specifications at very competitive prices. The authority has considered the above arguments and holds that 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 the general interest of the country.
The authority recognises that though 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 in the Indian market will not be reduced by the anti-dumping measures. On the contrary, imposition of anti-dumping measures would remove the unfair advantages gained by the dumping practices and would prevent the decline of the domestic industry and help maintain availability of wider choice of the subject goods to the consumers. Imposition of anti-dumping measures would also not restrict imports from the subject countries in any way, and, therefore, would not affect the availability of the products to the consumers.
As regards, the quality of the subject goods, the authority notes that the user industry has not provided any substantive evidence to justify their claims on quality and further they have not even quantified the wastages which arise by usage of the subject goods produced by the domestic industry. The authority holds that the difference in quality does not make the goods non-substitutable or non-interchangeable and that does not exclude them from the scope of investigation.
8. LANDED VALUE
The landed value has been determined separately for powder and granular/prilled grade of Strontium Carbonate after adding applicable level of custom duties (except duties levied under Section 3, 3A, 8B. 9, 9A) and one percent towards landing charges for the purposes of preliminary determination pending final investigation.
It is seen, after considering the foregoing, that:
Name of the exporter/producer
Amount of Duty (US$/MT)
E. FURTHER PROCEDURE
The following procedure would be followed subsequent to notifying the preliminary findings:
(L V SAPTHARISHI),