Dated the 28th April, 2006
Subject: Anti-dumping investigations concerning imports of Pencillin-G from China PR into India – Termination of investigation.
No. 14/12/2005-DGAD - Having regard to the Customs Tariff Act, 1975 and the Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, thereof:
1. The procedure given below has been followed with regard to the investigations:
i. The Designated Authority (hereinafter referred to as Authority), under the above Rules, received an application from M/s. Southern Petro Chemical Industries Corporation alleging dumping of Pencillin-G from China PR (hereinafter referred to as subject country)
ii. The preliminary scrutiny of the application revealed certain deficiencies, which were subsequently rectified by the applicant. The application was thereafter considered as properly documented.
iii. The Authority on the basis of sufficient evidence submitted by the application decided to initiate investigations against alleged dumping of imports of Penicillin-G from China PR. The Authority notified the Embassy of the subject country about the receipt of dumping allegation before proceeding to initiate investigations in accordance with sub-rule 5(5) of the Rules.
iv. The Authority issued a Public Notice dated 16th January, 2006, published in the Gazette of India Extraordinary initiating Anti-dumping investigations concerning imports of Penicillin-G classified under sub-heading 2941.10 of Schedule I of the Customs Tariff Act, 1975 originating in or exported from subject country.
v. The Authority forwarded a copy of the Public Notice to the known exporters, whose details were made available by the applicant, and gave them an opportunity to make their views known in writing within forty days from the date of the letter.
vi. The Authority forwarded a copy of the Public Notice to the known importers, whose details were made available by the applicant, and advised them to make their views known in writing within forty days from the date of the letter.
vii. Request was made to Director General Commercial Intelligence and Statistics (DGCI&S) and Central Board of Excise and Customs (CBEC) to arrange details of imports of subject goods from subject country.
viii. The Authority provided copies of the non-confidential application to the known exporters and the Embassy of the subject country in accordance with Rule 6(3) supra.
ix. The Embassy of the subject country was informed about the initiation of the investigation in accordance with Rule 6(2) with a request to advise the exporters/producers from their country to respond to the questionnaire within the prescribed time. A copy of the letter, non-confidential application, and questionnaire sent to the exporters was also sent to the concerned Embassy along with the name and addresses of the exporters.
x. The exporters questionnaire along with market economy questionnaire was sent to all the known exporters/producers from China PR and Bureau of Foreign Trade (BOFT), Ministry of Commerce, China PR. The following exporters filed the responses during the extended period, which was granted on the request of the Chamber of Commerce, China PR.
(a) M/s. Harbin Pharmaceutical Group Co., Ltd.,
(b) M/s. Lukang Pharmaceutical Import & Export Corporation,
(c) M/s. Shandong Lukang Pharmaceutical Co., Ltd.,
(d) M/s. Henan Zin Ziang Huazing Pharmaceutical Factory,
(e) M/s. North China Pharmaceutical Group Corporation Import & Export Co., Ltd.,
(f) M/s. NCPC Beta Company Ltd.,
xi. A questionnaire was sent to the following known importers of subject goods in India calling for necessary information in accordance with Rule 6(4): Response was filed by M/s. Asiatic Drugs & Pharmaceuticals Pvt. Ltd.
xii. The Authority made available the non-confidential version of the evidence presented by various parties in the form of a public file kept open for inspection by the interested parties.
xiii. Investigation was carried out for the period starting from 1st October 2004 to 30th September 2005 (12 months) i.e. the period of investigation (POI).
xiv. The Authority held a public hearing on 20th April 2006 to hear the interested parties orally, which was attended by applicant, representatives of the importers, exporters and other interested parties. The parties attending the public hearing were requested the Authority to examine the request of the domestic industry for termination of investigation under Rule 14 of AD Rules.
(B) PRODUCT UNDER CONSIDERATION
2. The product under consideration is “Pencillin-G” (herein after referred to as the subject goods) which is being dumped in the Indian market by the exporters from China PR(hereinafter referred to as subject country). Pencillin is not a single compound but a group of closely related compounds, all with the same basic ring-like structure (a beta-lactam) derived from two amino acids (valine and cysteine) via a tripeptide intermediate. Pencillin is a β-lactam antibiotic used in the treatment of bacterial infection caused by susceptible, usually Gram-positive, organisms. The name "pencillin" can either refer to several variants of pencillin available, or to the group of antibiotics derived from the pencillin. The subject goods are classified within Customs subheading 2941.10 and Indian Trade Classification based on Harmonized system. The Custom classification is indicative only and not binding on the scope of investigation.
(C) DOMESTIC INDUSTRY
3. Application has been filed by M/s Southern Petro Chemical Industries Corporation on behalf of the domestic industry and there were three more producers of Pencillin-G in India. M/s J.K. Pharma has closed the plant, M/s Alembic Limited, varorada has suspended the production in September 2004 and M/s Torrent Biotech Limited has also suspended the production in September 2005. As per the evidence available before the Authority, applicant has the standing to file the case for anti dumping investigation on behalf of domestic industry as per Rule 2(b) and Rule 5(3)(a) of Anti Dumping Rules.
(D) LIKE ARTICLE
4. The applicant has claimed that the goods produced by them are “like articles” to the goods originating in or exported from the subject country. Pencillin-G produced by the domestic industry and imports from China PR are comparable, technically and commercially substitutable in terms of characteristics such as physical and chemical characteristics, manufacturing process and technology, functions and uses, product specifications, pricing, distribution and marketing of the goods. Therefore, for the purpose of investigation the Pencillin-G produced by the applicant is being treated as like articles of Pencillin-G (hereinafter referred to as subject goods) imported from subject country within the meaning of the AD Rules.
(E) REQUEST FOR WITHDRAWAL OF INVESTIGATIONS
5. The applicant domestic industry vide their letter dated 2nd March,2006 has requested the Designated Authority to treat the application filed by them for Anti-dumping investigations against Pcnicillin-G originating in or exported from China PR as withdrawn and terminate the investigation.
6. Therefore, in view of the request of the domestic industry under Rule 14(a) of AD Rules, the Designated Authority hereby terminates this investigation which was initiated vide notification No. No. 14/12/2005-DGAD dated 16th January, 2006 concerning imports of Penicillin-G originating in or exported from China PR.