Examination by Authority
1. The Authority notes that in the present case there is only a single production process that has yielded the subject goods albeit in various qualities. The prime qualities have yielded a positive sales value and the non prime or secondary qualities of the same product /grade have had a relatively lower sales realisation as compared with the sales value of the prime grade material. As already noted, the raw materials and other inputs that go into the production process remain the same for the output and are inseparable. There are also no set or firm distinctions or standard gradation norms between the various qualities or ‘choices’of these individual grades of the subject goods which have been identified in the response either physically or technically. The cost of raw materials and other inputs cannot vary from the start to the end of the production process because the products that emerge are not different. The production process is a single process that has not yielded independent products.
2. The Authority notes that the demarcation of ‘choices’ for sales made in the domestic market in EU has been made by the exporter without elaborating on the specific physical or technical attributes differentiating these ‘choices’ in their response to the questionnaire. At the time of verification, the exporter has made available to the Authority on a confidential basis, an 'Album of Defects' wherein the definition/description of defects, the possible causes and detection thereof have been identified in the Spanish language. The Authority notes that these defects cannot be set apart from each other on the basis of any firm or standard norms. The Authority notes that for each of the grades sold, the cost of production of each quality (categorised as quality 1, quality 2, quality 3 and quality 4) has been separately provided. The combined cost of production of all qualities for each grade has also been given. It is seen that the cost of raw material and other inputs vary significantly between the choices/qualities of each grade.
3. Adjustments claimed in Appendix 5 (sales price structure for domestic sales in EU):- For 304 group, the exporter had claimed adjustments/deductions on account of handling (before fob) and on account of overseas freight (after fob) from the domestic sales. Similarly, for 316 group and 430 group, the exporter had claimed adjustments on account of handling (before fob) and overseas freight (after fob) for the domestic sales. As far as adjustments claimed in Appendix 5 (sales price structure for domestic sales in EU) are concerned, it is seen that the system of gradation in ‘choices’ has been followed with regard to adjustments claimed for each choice of material without assigning any reasons whatsoever. However, the adjustments claimed for each choice of material under all groups is the same on account of freight and handling. The back up papers for commission, handling, insurance (copy of insurance policy) and ocean freight were made available for domestic and export sales. The exporters made available ten invoices for each month of the period of investigations at the time of verification ( i.e. collectively a total of 90 invoices). It was pointed out at the time of the verification conducted by the Designated Authority that the domestic shipment has been effected in three modes. These are, by trucks, by vessels in full container loads and by ships in partial loads. The domestic freight has been indicated under the column overseas freight because of the fact that shipments to a number of countries in the EU takes place through ships/vessels. The total tons transported during the year 2000 by each of these modes and the average cost for each mode were verified with reference to the consolidated shipping statement and sample invoices.
(a) 304 group- In the 304 Group, the selling prices for 1st, 2nd, 3rd and 4th choice material are *** E/kg, *** E/kg, *** E/kg and *** E/kg respectively. The average selling price for 304 group (all qualities) is E ***/kg. For grade 304 the Authority has considered the claims of the exporter on account of handling at E ***/kg and overseas freight at E ***/kg bringing the total costs before and after fob to *** E/kg for all choices.
(b) 316 group- In the 316 Group, the selling prices for 1st, 2nd, 3rd and 4th choice material are *** E/kg, ***E/kg, ***E/kg and *** E/kg respectively. The average selling price for 316 group (all qualities) is E ***/kg. For 316 Group the claims of the exporter on account of handling at E ***/kg and overseas freight at *** E/kg has been considered by the Authority bringing the total costs before and after fob to *** E/kg for all choices.
(c) 430 group- In the 430 Group, the selling prices for 1st, 2nd and 4th choice material are *** E/kg, *** E/kg and *** E/kg respectively. The average selling price for 430 group (all qualities) is E ***/kg. For grade 430 the Authority has considered the claims of the exporter on account of handling at *** E/kg and overseas freight at *** E/kg bringing the total costs before and after fob to *** E/kg for all choices (1st, 2nd and 4th choice only).
4. After considering adjustments as given above, the domestic selling price at ex-factory level for each choice of material in the said grades sold in the EU are as given below:
E/kg
| Grade | 1st choice | 2nd choice | 3rd choice | 4th choice |
|---|
| 304 | *** | *** | *** | *** |
| 316 | *** | *** | *** | *** |
| 430 | *** | *** | – | *** |
5. The quantities sold in the domestic market are as given below:
| Grade | 1st choice | 2nd choice | 3rd choice | 4th choice |
|---|
| 304 | *** | *** | *** | *** |
| 316 | *** | *** | *** | *** |
| 430 | *** | *** | --- | *** |
Based on the quantities sold in the domestic market of EU as given above and the individual ex-factory selling prices of the different qualities/choices after considering adjustments claimed, the Authority has determined a weighted average ex-factory normal value of ***E/kg or USD ***/kg for the 304 grade, ***E/kg or USD ***/kg for the 316 grade and ***E/kg or USD ***/kg for the 430 grade at an average exchange rate of USD.90=1E. The Authority notes that these values are above their respective costs of production of E ***/kg for 304 family, E ***/kg for 316 family and E ***/kg for 430 family. The Authority also notes that the loss-making transactions in the 304, 316 and 430 grades constitute only 5.58%, 8.09% and 14.38% of the total quantities sold in the domestic market in the said grades.
(B) M/s ALZ, nv, Belgium:-
1. The exporter has made the following submissions in their response to the questionnaire and subsequently:-
(a) They have stressed the importance of the difference of the product mix sold in India compared to the product mix sold in the domestic market and other export market. During the POI 95.5% of the ALZ sales in India are second choice material and only 4.5% of the sales are prime first choice material. On the home market of ALZ 3.3% of ALZ sales are second choice while 96.7% of the sales are prime first choice material. On the export market besides India 5.4% of the ALZ sales are second choice while 94.6% of the sales are prime first choice material.
(b) ALZ has coded second choice merchandise in its own system. ALZ classifies material that is rejected during quality control because of a bad surface as second choice material. Even for second choice material, the chemical composition of the material should not differ from the standard.
(c) The Authority’s position in the matter has been given under Para I (A) (I ) of the preliminary findings and at para C3 of these findings.
(d) In the Profit and Loss Account in the Annual Report for the year 2000, the consolidated profit for the year 2000 is ***EUR against a consolidated loss of ***EUR for the year 1999. The Annual Income Statement at 31st December 2000 of ALZ reflected in the Annual Accounts 2000 shows the profit for the period (in thousand EUR) at ***.
(e) The exporter has furnished information on sales in the home market in Appendix 1 and information regarding sale of the subject goods in the domestic market, exports to India and exports to other countries in Appendix 3. The information has been furnished for different grades sold in the period of investigation which are as follows:-
| Grade | Qty (kg) | Value (eur) |
|---|
| Cr | *** | *** |
| Cr Ni | *** | *** |
| CrNiMo | *** | *** |
ALZ has grouped all the grades in the above three families of grades. The composite description of the grades correspond to the following individual grades sold in the home market:-
| | ALZ-Code (4 digits) | Standard ASTM |
|---|
| Cr (ferritic) | 4000 | S41003 |
| | 4300 | 430 |
| Cr-Ni grades (austenitic) | 3010 | 301 |
| | 3041 | 304L |
| | 3045 | 304 |
| | 3210 | 321 |
| Cr-Ni-Mo Grades (austenitic) | 3161 | 316L |
| | 3164 | 316Ti |
| | 3166 | 316 |
| | 3167 | 316L |
2. ALZ's books and records are kept in accordance with Belgium's accounting and book keeping regulations as per the General Bookkeeping and Accounting Law of July 17, 1975 and the Royal Decree of October 8, 1976. ALZ's physical year is from January 1 through December 31. Since 1999, ALZ has kept its books, all other internal documentation, and official financial documents in Euro (as opposed to Belgian Francs). ALZ's year-end financial statements are audited annually.
ALZ's cost accounting system is totally integrated into its general financial accounting system. The cost accounting system is based on two key systems which were developed by ALZ. In one system, all bookings are done by cost center and cost code (i.e. type of cost). The other system records and follows the complete stainless steel production process coil by coil and records all the processes that a coil undergoes, from the casting in the melt shop until the packing of the material. Every slab that is produced in the melt shop immediately receives a coil number, which is a number that is used to track the costs of a coil throughout its production process.
Normal Value:-
Cost of Production:-
The Factory Cost and Profit of Domestic Sales Exports was reported by the exporter as per Appendix 9 of the questionnaire. At the time of verification, the break-up of costs of various grades as reported in different fields in the coil card system was checked to arrive at individual costs for each grade sold. The Analytical Income Statement was reconciled with the profit and loss account as given in the Annual Accounts of the company for the year 2000. The break-up of costs and the analytical income statement are a part of the verification report.
Examination by the Authority:-
(a) S41003, 430 (Cr ferritic)- The total production of this grade in 2000 was ***kg. The raw material cost was E *** and the cost per unit was E ***/kg. The raw material cost was derived from the related fields in the coil card system. Direct labour and utilities include the sum of fields reporting, conversion cost, hot rolled variable cost, cold rolled fixed cost, pickling and annealing fixed cost, skinpass variable cost, finish i.e., cutting and slitting variable cost and other costs viz., coil preparing line. The sum of direct labour and utilities cost works out to E*** or E ***/kg. The manufacturing overheads and depreciation cost were also derived from the related fields in the coil card system and includes the sum of fields reporting fixed overhead for melt shop, fixed cost for hot rolled coils, variable cold rolled cost, variable annealing and pickling cost and fixed skin pass cost. The sum of manufacturing overheads and depreciation cost works out to E *** or E ***/kg. The financing and interest cost is E ***/kg and the average packing cost is E ***/kg. The selling and administration cost works out to E ***/kg. The ex-factory cost is E ***/kg and the ex-factory unit selling price is E***/kg or USD ***/kg.
(b) Grade 304 (Cr Ni)- The total production of this grade in 2000 was ***kg. The raw material cost was E *** and the cost per unit was E ***/kg. The raw material cost was derived from the related fields in the coil card system. Direct labour and utilities include the sum of fields reporting, conversion cost, hot rolled variable cost, cold rolled fixed cost, pickling and annealing fixed cost, skinpass variable cost, finish i.e., cutting and slitting variable cost and other costs viz., coil preparing line. The sum of direct labour and utilities cost works out to E ***or E ***/kg. The manufacturing overheads and depreciation cost were also derived from the related fields in the coil card system and includes the sum of fields reporting fixed overhead for melt shop, fixed cost for hot rolled coils, variable cold rolled cost, variable annealing and pickling cost and fixed skin pass cost. The sum of manufacturing overheads and depreciation cost works out to E *** or E ***/kg. The financing and interest cost is E ***/kg and the average packing cost is E ***/kg. The selling and administration cost works out to E ***/kg. The ex-factory cost is E ***/kg and the ex-factory unit selling price is ***E/kg or USD ***/kg.
(c) Grade 316 (Ni Cr Mo)- The total production of this grade in 2000 was ***kg. The raw material cost was E ***and the cost per unit was E ***/kg. The raw material cost was derived from the related fields in the coil card system. Direct labour and utilities include the sum of fields reporting, conversion cost, hot rolled variable cost, cold rolled fixed cost, pickling and annealing fixed cost, skinpass variable cost, finish i.e., cutting and slitting variable cost and other costs viz., coil preparing line. The sum of direct labour and utilities cost works out to E ***or E ***/kg. The manufacturing overheads and depreciation cost were also derived from the related fields in the coil card system and includes the sum of fields reporting fixed overhead for melt shop, fixed cost for hot rolled coils, variable cold rolled cost, variable annealing and pickling cost and fixed skin pass cost. The sum of manufacturing overheads and depreciation cost works out to E *** or E ***/kg. The financing and interest cost is E ***/kg and the average packing cost is E ***/kg. The selling and administration cost works out to E ***/kg. The ex-factory cost is E ***/kg and the ex-factory unit selling price is ***E/kg or USD ***/kg.
Adjustments claimed for Domestic Sales in Appendix-5 :-
(a) S41003, 430 (Cr ferritic)-
As stated in Appendix 1, the exporter has sold ***kg of Cr grade in the domestic market of a value of E ***. The average invoice value is E ***/kg or USD ***/kg.
In the Sales price structure for domestic sales (Appendix 5), the exporter has claimed adjustments on account of commission, packing, overall transport and overall insurance.. The exporter has calculated an average cost for packaging which works out to E ***/kg and has been stated as such in Appendix 9 (Factory Cost and Profit of Domestic Sales). Each transport invoice is booked and on each invoice the packing list number is stated. The skid numbers are available corresponding to this packing list number. Based on the gross weight the invoiced costs are allocated to each individual skid. The transport charge is ***/kg. There is no insurance charge. The total costs on account of adjustments claimed is E ***/kg. The selling price is E ***/kg. After allowing adjustments on account of the above mentioned charges, the ex-factory domestic selling price for ferritic grades is ***E/kg or USD ***/kg at an average exchange rate of 1E=USD .90.
The ex-factory cost is E ***/kg and the ex-factory unit selling price is E***/kg The Authority notes that loss making transactions account for 91.41% of the total quantity sold. As per Rule 2 Annexure 1 of the Anti-Dumping Rules, 'Sales of the like product in the domestic market of the exporting country or sales to a third country at prices below per unit (fixed and variable) costs of production plus administrative, selling and general costs may be treated as not being in the ordinary course of trade by reason of price. The designated authority may disregard these sales, in determining normal value, provided it has determined that-
(i) such sales are made with in a reasonable period of time (not less than six months) in substantial quantities, i.e. when the weighted average selling price of the article is below the weighted average per unit costs or when the volume of the sales below per unit costs represents not less than twenty per cent of the volume in transactions under consideration, and
(ii) such sales are at prices, which do not provide for the recovery of all costs within a reasonable period of time. The said prices will be considered to provide for recovery of costs within a reasonable period of time if they are above weighted average per unit costs for the period of investigation, even though they might have been below per unit costs at the time of sale."
The normal value is therefore the net sales realisation of the profit making transactions which is E ***/kg or USD ***/kg.
(b) Grade 304 (Cr Ni)-
As stated in Appendix 1, the exporter has sold ***of CRNI grade in the domestic market of a value of E ***. The average invoice value is E ***/kg or USD ***/kg.
For sales of this grade, the exporter has claimed adjustments on account of packing, overall transport, overall insurance and bonus. The exporter has calculated an average cost for packaging which works out to E ***/kg. The transport charge is ***/kg and the insurance cost is ***/kg. The bonus cost claimed is ***/kg bringing the total costs on account of adjustments claimed to E ***/kg. The selling price is E ***/kg. After allowing adjustments on account of the above mentioned charges, the ex-factory domestic selling price for Cr Ni grade is ***E/kg or USD ***/kg at an average exchange rate of 1E=USD .90.
The ex-factory cost is E ***/kg and the ex-factory unit selling price is ***E/kg The Authority notes that loss making transactions account for 19.77% of the total quantity sold i.e., the volume of the sales below per unit costs are less than twenty per cent of the volume in transactions under consideration. The ex-factory normal value is therefore E ***/kg or USD ***/kg.
(c) Grade 316 (Ni Cr Mo)-
As stated in Appendix 1, the exporter has sold ***kg of CRNIMO grade in the domestic market of a value of E ***. The average invoice value is E ***/kg or USD ***/kg.
For sales of this grade, the exporter has claimed adjustments on account of packing, overall transport, and overall insurance. The exporter has calculated an average cost for packaging which works out to E ***/kg. The transport charge is ***/kg and the insurance cost is ***/kg. The total costs on account of adjustments claimed is E ***/kg. The selling price is E ***/kg. After allowing adjustments on account of the above mentioned charges, the ex-factory domestic selling price for Cr Ni MO grades is ***E/kg or USD ***/kg at an average exchange rate of 1E=USD .90.
The ex-factory cost is E ***/kg and the ex-factory unit selling price is ***E/kg The Authority notes that loss making transactions account for 2.11% of the total quantity sold i.e., the volume of the sales below per unit costs are less than twenty per cent of the volume in transactions under consideration. The ex-factory normal value is therefore E ***/kg or USD ***/kg.
(C) Assessment of Non-cooperative Producers/Exporters from EU:-
The Authority observes that other producers/exporters from EU have not responded to the questionnaire in the prescribed format and have not furnished information relating to normal value, export price, and dumping margin. The Authority therefore considers such producers/exporters to be non-cooperative and has proceeded on best available information.
For the co-operative exporter from Spain, the Authority has determined a weighted average ex-factory normal value of ***E/kg or USD ***/kg for the 304 grade, ***E/kg or USD ***/kg for the 316 grade and *** E/kg or USD ***/kg for the 430 grade at an average exchange rate of E 1=90 USD. The Authority has noted that these values are above their respective costs of production of E***/kg for 304 family, E***/kg for 316 family and E***/kg for 430 family. The Authority also notes that the loss-making transactions in the 304, 316 and 430 grades constitute only 5.58%, 8.09% and 14.38% of the total quantities sold in the domestic market in the said grades. Therefore, for non-cooperative exporters, the Authority has adopted the ex-factory normal value of E ***/kg or USD ***/kg for all groups/series.
(D) M/s Kawasaki Steel Corporation, Japan:-
(a) Cost of Production:-
The exporter has furnished the non-consolidated statement of income for the years ended March 31, 2001 and 2000. It is seen that in 2001 they have made an ordinary profit of ***millions of yen. In the cost of production, the allocation and apportionment of expenditure for the period of investigation (gradewise) was submitted by the exporter.
1. In respect of the allocation and apportionment of expenditure necessary to arrive the cost of production, the worksheet enumerating the required calculations was submitted for each of the grades in question. The respective worksheet was reconciled with the data submitted as per the Exporter's questionnaire.
2. The costing for each of the grades is based on the standard costs of each grade calculated to which at the end of the financial period variance cost is arrived and accounted for, finally to arrive at the actual cost of production for each of the grades.
Regarding Accounting and Financial reporting practices, the exporter has furnished information on allocation of cost from larger cost categories, stock valuation, depreciation methods and useful life of fixed assets, etc. The details of its cost accounting system are provided in Exhibit - D2 of volume 1 of the questionnaire response. As noted in Exhibit-D2, because Kawasaki has a standard cost accounting system, the cost production data supplied in reply is based on the standard costs plus an allocation of variances.
Information on Factory Cost and profit of domestic and export sales to India has been furnished in the relevant appendices. Data has also been furnished under Formats A, B, CI, CII, D E & F.
Normal Value:-
(b) Sales in the home market (Appendix 1):-
The exporter has furnished information on sales in the home market in Appendix 1 and information regarding sale of the subject goods (exports to India, domestic market sales and exports to other countries) in Appendix 3. The information has been furnished for different grades sold in the period of investigation which are as follows:-
| Grade | USD/MT (POI-Total) | Qty (kg) |
|---|
| 409L | *** | *** |
| 436LT | *** | *** |
| 420J1 | Nil | Nil |
| 420J2 | *** | *** |
| Ferritic Type (409, 410, 420 and similar) | *** | *** |
| Ferritic Type 430 and similar) | *** | *** |
| Other Ferritic | *** | *** |
| Ferritic Type Super Oxidation resistant steel | *** | *** |
| Austenitic Type (304 and Similar) | *** | *** |
| Other Austenitic | *** | *** |
The exporter has stated that consumption tax incurred for sales to consumers is tax tentatively collected by companies from consumers before being paid to the Government. The prevailing rate of consumption tax is 5%. Payment for purchase excluding consumption tax is accounted in the ledger and consumption tax amount is separately accounted.
(c) Adjustments claimed on domestic sales:-
M/s Kawasaki has furnished transaction wise information on inland freight, insurance and storage costs for domestic sales for each grade. Kawasaki has a contract for inland freight insurance by ship transportation. Copies of the costs incurred for inland freight in the domestic market were made available. It was explained that the cost difference is not caused by grade, but by types of transportation and distance to destinations. The insurance costs has been calculated as per a formula and the copy of the insurance contract has been provided. Kawasaki has furnished the location of warehouses of the transportation company and the warehousing expense at Nagoya and Yokahama.
409L- In the Sales price structure for domestic sales (Appendix 5), the exporter has claimed adjustments on account of inland freight, insurance, and storage. The selling price is USD ***/MT for 409L. The average inland freight for sales of R409L is USD ***/MT. The insurance costs is USD ***/MT and the storage costs is ***/MT. After allowing adjustments on account of the said charges and discounts/commissions of USD ***/MT the price at ex-factory level is USD ***/MT.
436LT- The selling price is USD ***/MT for 436LT. The average inland freight for sales of 436LT is USD ***/MT. The insurance costs is USD ***/MT and the storage costs is ***/MT. After allowing adjustments on account of the said charges and discounts/commissions of USD ***/MT the price at ex-factory level is USD ***/MT.
420J2- The selling price is USD ***/MT for 420J2. The average inland freight for sales of 420J2 is USD ***/MT. The storage costs is ***/MT. After allowing adjustments on account of the said charges and discounts/commissions of USD ***/MT the price at ex-factory level is USD ***/MT.
420J1- There are no domestic sales of this grade in the Japanese market. However, the said grade has been exported to India during the period of investigation. The cost of production of 420J1 is Y ***/MT as claimed by the exporter in Appendix 8. The constructed normal value after addition of notional profit of ***% is therefore USD ***/MT.
After allowing adjustments on account of the above mentioned charges, the ex-factory domestic selling price for various grades sold are as follows:-
| Grade | Ex-factory price (USD/MT) |
|---|
| 409L | *** |
| 436LT | *** |
| 420J2 | *** |
| 420J1 | *** |
(E) Assessment of Non-cooperating Producers/Exporters from Japan:-
The Authority observes that other producers/exporters from Japan have not responded to the questionnaire in the prescribed format and have not furnished information relating to normal value, export price, and dumping margin. The Authority therefore considers such producers/exporters to be non-cooperative and has proceeded on best available information. After allowing adjustments as claimed by the co-operative exporter from Japan, the ex-factory weighted average domestic selling price for various grades sold in the 400 series in USD/MT are as follows:-
| Grade | Ex-factory price (USD/MT) |
|---|
| 409L | *** |
| 436LT | *** |
| 420J2 | *** |
| 420J1 | *** |
Therefore, for non-cooperative exporters, the Authority has adopted the ex-factory normal value of USD ***/MT for all groups/series.
(F) Canada:-
The Authority notes that no producer/exporter from Canada has responded to the questionnaire in the prescribed format and have not furnished information relating to normal value and export price. There is therefore no information from concerned exporters regarding the normal value of the subject goods prevailing in the domestic market in Canada. The Authority therefore considers all such exporters to be non-cooperative and has proceeded on best available information.
In the circumstances the Authority has been constrained to determine the normal value which has been derived considering the fact that the NAFTA is also working towards the free movement of goods and member countries have tariff (and not quantitative) barriers between them. The petitioners have submitted an extract of customs tariffs prevailing in Canada from where it is seen that the MFN rate on customs heading 7219 is 4%. The constructed normal value determined for USA is USD ***/MT based on the response of the exporter from USA. After considering the MFN rate the normal value in Canada has been considered to be USD ***/MT.
(G) M/s North American Stainless, USA:-
The exporter has sold second quality coils in the domestic market and has furnished information on such sales in Appendix 1 and 3. The information has been furnished for Grade 304 (304L , 304DQ, 304DDQ) sold in the period of investigation. A quantity of ***lbs or *** kg of a value of USD***was sold at a unit value of USD ***/lbs or USD ***/kg.. As already noted, information on price structures and sales arrangements in Appendices 4,5 and 6 have not been furnished. Discounts/commissions (if any), and charges before and after fob on account of various costs in order to arrive at the domestic and export price at the ex-factory level are not known. The cost of production shown in Appendix 9 for domestic sales does not state the per unit ex-factory cost. The exporter however has shown losses incurred on domestic sales. An amount of ***(USD) has been stated as the cost of domestic sales. Considering the quantity of *** lbs or *** kg sold in the domestic market, the per unit cost of production works to USD ***/lbs or USD ***/kg. The domestic selling price per unit is therefore less than the cost of production. As per Annexure I of the Anti-Dumping Rules, the Designated Authority may disregard the sales of the like article in the domestic market of the exporting country in determining normal value when the weighted average selling price of the article is below the weighted average per unit costs. Accordingly, after adding a reasonable return @ ***% on the cost of production submitted by the company for the period of investigation, the constructed normal value has been worked out which is USD ***/lbs or USD ***/kg for the purpose of these final findings.
(H) Other Producers/Exporters from USA:-
The Authority observes that other producers/exporters from USA have not responded to the questionnaire in the prescribed format and have not furnished information relating to normal value, export price, and dumping margin. The Authority therefore considers such producers/exporters to be non-cooperative and has proceeded on best available information.
Therefore, for non-cooperative exporters, the Authority has adopted the ex-factory normal value of USD ***/lbs or USD ***/kg for the purpose of these final findings for all groups/series.
(2) Export Price
(A) M/s Acerinox S.A., Spain:-
The exporter had furnished information pertaining to sales of the subject goods viz. exports to India, domestic market sales and exports to other countries as per Appendix 3. The information has been furnished for Aisi 304 Group, Aisi 310 S Group, Aisi 316 Group and Aisi 430 Group. It is seen that the information has been furnished for all qualities, 1 quality, 2 quality, 3 quality, and 4 quality in respect of sales made in each of these grades. The factory costs and profit furnished in Appendix 8,9 and 10 has also been furnished for all grades combined and for qualities 1 to 4 individually. In Appendix 5 (sales price structure for domestic sales, EU) adjustments have been claimed on account of charges before and after fob.
Examination by Authority
1.The Authority notes that the demarcation of ‘choices’ has been made by the exporter without elaborating on the specific physical or technical attributes differentiating these ‘choices’. The Authority notes that for each of the grades exported to India, the cost of production of each quality (categorised as quality 1, quality 2, quality 3 and quality 4) has been separately provided. The combined cost of production of all qualities for each grade has also been given. It is seen that the cost of raw material and other inputs vary significantly between the choices/qualities of each grade.
2.As far as adjustments claimed in Appendix 4 (sales price structure for exports to India are concerned, it is seen that the system of gradation in ‘choices’ has been followed with regard to adjustments claimed for each choice of material without assigning any reasons whatsoever at the time of preliminary findings. The Authority noted that the commission amount and overseas freight varied between the different choices/qualities of each grade although the same had been shown in terms of E/kg. The exporter has since clarified that the choices have different prices and cost allocations. Expenses on freight, insurance, commission and handling are not dependent on 'choices' but on weight and value. For the purpose of arriving at an uniform cost for each charge, the Authority has considered the average charge per unit on account of each cost/adjustment claimed after considering the total cost of each charge for all the qualities put together and the total value thereagainst.
3. (a) 304 Group- In the 304 Group, the selling prices shown for 1st, 2nd, 3rd and 4th choice material are ***E/kg, ***E/kg, ***E/kg and ***E/kg respectively. The average export price for 304 group (all qualities) is E***/kg. The Authority has considered the total cost on account of commission paid for 304 group (all choices) and arrived at a uniform commission amount of ***E/kg. The Authority has similarly worked out the overseas freight amount at ***E/kg. The cost on account of handling is ***E/kg and ***E/kg on account of overseas insurance. The total cost before and after fob (for 304 group inclusive of all 'choices') on adjustments claimed is therefore ***E/kg.
(b) 316 Group- For 316 Group, the selling prices shown for 1st, 2nd, 3rd and 4th choice material are ***E/kg, ***E/kg, ***E/kg and ***E/kg respectively. The average export price for 316 group (all qualities) is E ***/kg. The Authority has considered the total cost on account of commission paid for 316 group (all choices) and arrived at a uniform commission amount of ***E/kg. The Authority has similarly worked out the overseas freight amount at ***E/kg. The cost on account of handling is ***E/kg and ***E/kg on account of overseas insurance. The total cost before and after fob (for 316 group inclusive of all 'choices') on adjustments claimed is therefore ***E/kg.
(c) 430 Group- For 430 Group, the selling prices shown for 1st, 2nd, 3rd and 4th choice material are ***E/kg, ***E/kg, ***E/kg and ***E/kg respectively. The average export price for 430 group (all qualities) is E ***/kg The Authority has considered the total cost on account of commission paid for 430 group (all choices) and arrived at a uniform commission amount of ***E/kg. The Authority has similarly worked out the overseas freight amount at *** E/kg. The cost on account of handling is *** E/kg and *** E/kg on account of overseas insurance. The total cost before and after fob (for 430 group inclusive of all 'choices') on adjustments claimed is therefore ***E/kg.
4. After considering adjustments as given above, the export price at ex-factory level for each choice of material in the said grades exported to India are as given below:
E/kg
| Grade | Ist choice | 2nd choice | 3rd choice | 4th choice |
|---|
| 304 | *** | *** | *** | *** |
| 316 | *** | *** | *** | *** |
| 430 | *** | *** | *** | *** |
5. The export quantities to India are as given below:-
| Grade | 1st choice | 2nd choice | 3rd choice | 4th choice |
|---|
| 304 | *** | *** | *** | *** |
| 316 | *** | *** | *** | *** |
| 430 | *** | *** | *** | *** |
Based on the quantities exported to India as given above and the individual ex-factory export prices of the different qualities after considering adjustments claimed, the Authority has determined a weighted average ex-factory export price of E *** /kg or USD ***/kg for the 304 grade, E *** /kg or USD ***/kg for the 316 grade and E ***/kg or USD *** /kg for the 430 grade.
The Authority notes that the exporter had indicated an average exchange rate of 1E x .90 = 1USD in its response to the exporters questionnaire. In Appendix 4(Sales price structure for Exports to India) the selling (export) price shown is in terms of E/kg. The Authority had adopted this exchange rate for the purpose of arriving at the export price in terms of USD/kg at the time of the preliminary findings. At the time of verification the exporter had provided export invoices for the grades sold by them to India during the period of investigation. The Authority compared these invoices with the transaction wise details furnished in Appendix 2 which shows the cif value sold to India in terms of USD and Euro and noted that the value in US dollars was less than the value in Euro.
In response to the query regarding the exchange rate raised by the Authority, the exporter vide their letter dated 3/9/2002 has clarified that during the period of investigation the average rate was 1Euro=0.9089USD. In Appendix 4,5 & 6 of the response, while indicating the exchange rate, it has been shown as "1E x 0.90=1US$". It should have been shown as "1E x 0.90=US$". Thus 1000 Euros would be equal to US$ 900."
(B) M/s ALZ, nv, Belgium:-
In Appendix 3 the exporter has furnished the following information regarding exports made to India:-
| Grade | Oty (kg) | Value (eur/kg) |
|---|
| Cr | *** | *** |
| CrNi | *** | *** |
| CrNiMo | *** | *** |
Adjustments claimed for Export Sales in Appendix-4 :-
(a) S41003, 430 (Cr ferritic)- In the Sales price structure for export sales (Appendix 4), the exporter has claimed adjustments on account of commission, packing, and overall transport. The exporter has calculated an average cost for packaging which works out to E ***/kg. At the end of the production process the material that is ultimately sold receives a package number, and for each invoice issued on a sale there is an accompanying packing list with all the package numbers. Thus, the link between sales and production is maintained. The Authority has examined each individual charge against each invoice (as stated in Appendix 2) and worked out the weighted average cost of the different adjustments claimed per kg. The weighted average transport charge from Genk to port is E ***/kg and the weighted average ocean freight is E ***/kg. The commission charge works out to E ***/kg. In Appendix 2 the insurance charge has been shown against the relevant invoices of exports sales of CR group and the weighted average insurance charge works out to E ***/kg. The total costs on account of adjustments claimed is E ***/kg. The unit selling price is E ***/kg. After allowing adjustments on account of the above mentioned charges, the ex-factory export price for Cr grade is E ***/kg or USD ***/kg at an average exchange rate of .90USD=1E.
(b) Grade 304 (Cr Ni)-
For sales of this grade, the exporter has claimed adjustments on account of commission, packing, overall transport and overall insurance. The exporter has calculated an average cost for packaging which works out to E ***/kg. The Authority has examined each individual charge against each invoice (as stated in Appendix 2) and worked out the weighted average cost of the different adjustments claimed per kg. The weighted average transport charge from Genk to port is ***/kg and the weighted average ocean freight is E ***/kg. The weighted average insurance cost is ***/kg. The commission amount is E ***/kg. The total costs on account of adjustments claimed is E ***/kg. The unit selling price is E ***/kg. After allowing adjustments on account of the above mentioned charges, the ex-factory export price for Cr Ni grade is ***E/kg or USD ***/kg at an average exchange rate of .90USD=1E.
(c)Grade 316 (Ni Cr Mo)-
For sales of this grade, the exporter has claimed adjustments on account of commission, packing, overall transport, and overall insurance. The exporter has calculated an average cost for packaging which works out to E ***/kg. The Authority has examined each individual charge against each invoice (as stated in Appendix 2) and worked out the weighted average cost of the different adjustments claimed per kg. The weighted average transport charge from Genk to port works out to E ***/kg and the weighted average ocean freight is E ***/kg. The weighted average insurance cost is ***/kg and the commission amount is ***/kg. The total costs on account of adjustments claimed is E ***/kg. The unit selling price is E ***/kg. After allowing adjustments on account of the above mentioned charges, the ex-factory export price for Cr Ni MO grades is E ***/kg or USD ***/kg at an average exchange rate of .90USD=1E.
(C) Assessment of Non-cooperating Producers/Exporters from EU:-
The Authority observes that other producers/exporters from EU have not responded to the questionnaire in the prescribed format and have not furnished information relating to normal value, export price, and dumping margin. The Authority has relied upon best available information on record in the absence of co-operation from other exporters/producers in the EU.
The ex-factory export price for all non-cooperative exporters for all groups/series from the EU is assessed as USD ***/kg.
(D) M/s Kawasaki Steel Corporation, Japan:-
In Appendix 3 the exporter has furnished the following information regarding exports made to India:-
| Grade | Qty (kg) | Value (USD/MT) |
|---|
| 409L | *** | *** |
| 436LT | *** | *** |
| 420J1 | *** | *** |
| 420J2 | *** | *** |
The exporter has stated that consumption tax levied on steel products is reimbursed when such steel products are exported. However, this is not an incentive given on export sales but implementation of the policy of Consumption Tax Act of Japan. The revised appendix 2 as per the questionnaire format has been submitted by the company. M/s Kawasaki has furnished transaction wise information on inland freight, and insurance costs for export sales for each grade. In the revised Sales price structure for exports to India (Appendix 4), the exporter has claimed adjustments on account of inland freight, insurance, handling, overseas insurance and others. Copies of the costs incurred for inland freight in the domestic and export market were made available. It was explained that the cost difference is not caused by grade, but by types of transportation and distance to destinations. Kawasaki's inland insurance for exports sales has been given which includes a copy of contract of insurance. Ocean freight charges are decided and agreed upon between trading companies and shipping companies.
409L- In the Sales price structure for exports to India (Appendix 4), the selling price for 409L is USD ***/MT. The average inland freight for export sales of 409L is USD ***/MT. The insurance is USD ***/MT and handling charges is USD ***/MT. Overseas freight is USD ***/MT and overseas insurance is USD ***/MT. The charges on account of others is USD ***/MT. The total costs on account of these adjustments is USD ***/MT. After allowing adjustments on account of the said charges the price at ex-factory level is USD ***/MT.
436LT- The selling price for 436LT is USD ***/MT. The average inland freight for export sales of 436LT is USD ***/MT. The insurance is USD ***/MT and handling charges is USD ***/MT. Overseas freight is USD ***/MT. The charges on account of others is USD ***/MT. The total costs on account of these adjustments is USD ***/MT.After allowing adjustments on account of the said charges the price at ex-factory level is USD ***/MT
420J1- The selling price for 420J1 is USD ***/MT. The average inland freight for export sales of 420J1 is USD ***/MT. The insurance is USD ***/MT and handling charges is USD ***/MT. Overseas freight is USD ***/MT and overseas insurance is USD ***/MT. The charges on account of others is USD ***/MT. The total costs on account of these adjustments is USD ***/MT. After allowing adjustments on account of the said charges the price at ex-factory level is USD ***/MT.
420J2- The selling price for 420J1 is USD ***/MT. The average inland freight for export sales of 420J2 is USD ***/MT. The insurance is USD ***/MT and handling charges is USD ***/MT. Overseas freight is USD ***/MT and overseas insurance is USD ***/MT. The charges on account of others is USD ***/MT. The total costs on account of these adjustments is USD ***/MT. After allowing adjustments on account of the said charges the price at ex-factory level is USD ***/MT.
After allowing adjustments on account of the above mentioned charges, the ex-factory export price for various grades sold are as follows:-
| Grade | Ex-factory price (USD/MT) |
|---|
| 409L | *** |
| 436LT | *** |
| 420J1 | *** |
| 420J2 | *** |
(E) Assessment of Non-cooperating Producers/Exporters from Japan:-
The Authority observes that other producers/exporters from Japan have not responded to the questionnaire in the prescribed format and have not furnished information relating to normal value, export price, and dumping margin. The Authority has relied upon best available information on record in the absence of co-operation from other exporters/producers in the EU.
The ex-factory export price for all non-cooperative exporters for all groups/series from Japan is assessed as USD ***/kg.
(F) M/S North American Stainless
In the costs and profits of exports to India (Appendix 8) the total costs of exports to India is stated to be USD ***. Considering the quantity of *** lbs or *** kg exported to India, the per unit cost works out to ***/lbs or USD ***/kg. The exporter has shown losses incurred on export sales. Second quality coils have been exported to India to India and information on quantities of the subject goods exported to India has been furnished in Appendix 3. From the information submitted, it is seen that a quantity of *** lbs or ***kg was exported of a value of USD ***. The per unit export price works out to USD ***/lbs or USD ***/kg. final
The exporter has not furnished any information on costs incurred before and after fob as per Appendix 4 of the questionnaire. The Authority has therefore relied upon best available information as available in the petition. After considering ocean freight at USD ***/kg, insurance @***%, transportation costs at USD ***/kg, the ex-factory export price works out to USD ***/kg which is adopted for the purpose of these final.
(G) Assessment of Non-cooperating exporters Exporters/Producers from USA:-
The Authority has relied upon DGCIS data in the absence of information from all other producers/exporters in the USA. The total quantity exported during Apr-Dec 2000 is 4,071,709 kg of a value of Rs ***bringing the cif value to Rs ***/kg or USD ***/kg at an average exchange rate of Rs 45.62=1USD during the POI.
The exporters have not furnished any information on costs incurred before and after fob as per Appendix 4 of the questionnaire. The Authority has therefore relied upon best available information as available in the petition. After considering ocean freight at USD ***/kg, insurance @***%, transportation costs at USD ***/kg, the ex-factory export price works out to USD ***/kg for all groups/series which is adopted for the purpose of these final findings.
(H) Canada
The Authority has relied upon DGCIS data in the absence of information from the producers/exporters in Canada. The total quantity exported during Apr-Dec 2000 is 1,032,102 kg of a value of Rs ***bringing the cif value to Rs ***/kg or USD ***/kg at an average exchange rate of Rs 45.62=1USD during the POI.
The exporters in Canada have not furnished any information on costs incurred before and after fob as per Appendix 4 of the questionnaire. The Authority has therefore relied upon best available information as available in the petition. After considering ocean freight at USD ***/kg, insurance @***%, transportation costs at USD ***/kg, the ex-factory export price works out to USD ***/kg for all groups/series which is adopted for the purpose of these final findings.
(3) Dumping Margin:-
The Authority has followed the consistent policy of adopting the principles governing the determination of Normal Value, Export Price and Margin of Dumping as laid down in Annexure I of the anti-dumping rules. Based on the ex-factory normal values and ex-factory export prices as indicated above, the Authority assessed the dumping margins in case of all exporters from EU, Japan, Canada and USA as given in the table below:-
| Grade /Group | Producer/Exporter | Dumping Margin (%) |
|---|
| | | Normal Value (USD/kg) | Export Price
(USD/kg) | DM |
|---|
| European Union |
| 300 series | (1) M/s Acerinox S.A., Spain | | | |
| 304 | | *** | *** | 21.53% |
| 316 | | *** | *** | 42.14% |
300 series
(wt. average) | | *** | *** | 23.25% |
| | (2) ALZ nv, Belgium | | | |
| 304 | | *** | *** | 46.77% |
| 316 | | *** | *** | 30.40% |
300 series
(wt. Average) | | *** | *** | 42.54% |
| 300 series | (3) All other exporters | *** | *** | 46.77% |
| 400 series | (1) M/s Acerinox S.A., Spain | | | |
| 430 | | *** | *** | 20.93% |
| 430 | (2) M/s ALZ nv, Belgium | *** | *** | 265% |
| 400 series | (3) All other exporters/producers | *** | *** | 265% |
| All other groups/series | (3) All exporters/producers | | | 265% |
| Japan |
| 400 series | (1) M/s Kawasaki Steel Corporation | | | |
| 409L | | *** | *** | 32.22% |
| 436LT | | *** | *** | 30.56% |
| 420J1 | | *** | *** | -12.96% (de-minimis) |
| 420J2 | | *** | *** | 5.05% |
| 400 series (Wt average) | | *** | *** | 30.81% |
| | (2) M/s Kawasaki Steel Corporation and M/s Kawasaki Steel Corp in conjunction with Kawasho Corp, Sumitomo, Corp and Nikko Boeki Kaisha Ltd. etc | | | |
| 409L | | *** | *** | 54.47% |
| 436LT | | *** | *** | 48.75% |
| 420J1 | | *** | *** | 1.77%
(De-minimis) |
| 420J2 | | *** | *** | 24.01% |
| 400 series (Wt average) | | *** | *** | 51.77% |
| 400 series | (2) All other exporters | *** | *** | 171.9% |
| All other groups/series | (3) All exporters/producers | | | 171.9% |
| Canada |
| All groups/series | All exporters/producers | *** | *** | 75.41% |
| USA |
| 300 series | (1) M/s North American Stainless | *** | *** | 70.24% |
| 300 series | (2) All other exporters/producers | *** | *** | 136.78% |
| All other groups/Series | (3) All exporters/producers | | | 136.78% |
G. INJURY:-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 article…" 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 increase, which otherwise would have occurred, to a significant degree.
Annexure II(iii) under Rule 11 supra further provides that in case where imports of a product from more than one country are being simultaneously subjected to anti-dumping investigations, the Designated Authority will cumulatively assess the effect of such imports, only when it determines that the margin of dumping established in relation to the imports from each country is more than two per cent expressed as a percentage of export price and the volume of the imports from each country is three per cent of the imports of the like article or where the export of the individual countries is less than three per cent , the imports cumulatively account for more than seven per cent of the imports of the like article, and cumulative assessment of the effect of imports is appropriate in light of the conditions of competition between the imported article and the like domestic article.
The Authority notes that the margin of dumping and quantum of imports from the subject countries are more than the limits prescribed in Rule 11 Supra.
For the examination of the impact of imports on the domestic industry in India, the Authority has considered such further indices having a bearing on the state of the industry as production, capacity utilisation, quantum of sales, stock, profitability, net sales realisation, the magnitude and margin of dumping etc. in accordance wire Annexure II (iv) of the rules supra.
(a) Quantum of Imports
As per DGCIS
Quantity (kg)
| Country | 1998-99 | 1999-2000 | POI (Apr-Dec 2000) |
|---|
| EU | 11,027,022 | 18,449,128 | 11,727,895 |
| Japan | 2,672,356 | 1,548,542 | 2,329,007 |
| Canada | 1,787,349 | 1,486,733 | 1,032,102 |
| USA | 2,757,693 | 4,513,508 | 4,071,709 |
| Sub Countries | 18,244,420 | 25,997,911 | 19,160,713 (annl. 25,547,617) |
| Other Sources | 8,428,020 | 9,797,331 | 3,304,587 |
| Total Imports | 26,672,440 | 35,795,242 | 22,465,300 (annl. 29,953,733) |
The total imports of CR Flat Products increased by 134% in 99-2000 over that of 98-99. The increase in the total imports of the subject goods from the subject countries was 142.49% in 99-2000 over the level of 1998-99. The DGCIS has provided transaction wise import data for the period of investigation. It is observed that although the quantum of total imports (annualised) came down during the period of investigation, the imports from the subject countries increased as compared to the level of 1998-99.
The share of the imports from the subject countries as a percent of the total imports has gone up from 68.40% in the year 1998-99 to 72.63% in 1999-2000 to 85.29% during the period of investigation. The share of imports as a share of total imports have therefore shown a rising trend.
(b) Production and Capacity Utilisation:-
The production capacity, actual production and capacity utilisation of the petitioners was as follows: -
| Petitioners | Year | Installed
Capacity (MT) | Production
(MT) | Capacity Utilisation % |
|---|
| Jindal Strips | 1998-99 | 30000 | 10104 | 33.68% |
| | 1999-2000 | 30000 | 24388 | 81.29% |
| | | 200 | 300 | | 7608.48 | 15938 | 841 | |
| | POI (Apr-Dec 2000) | 22500 | 25220 | 112.13% |
| | | 200 | 300 | 400 | 8891 | 11806 | 4532 | |
It has been claimed by the domestic industry that they had made substantial investments in expansion of their capacities during the period of investigation. It was stated that their production capacity was increased from 30,000MT per annum to 60,000MT in September 1999 and further to 90,000 MT in September 2000. Since the expansion of capacities was not reflected in the official documents submitted to the Authority, further information was called for from the domestic industry to substantiate their claim that they had started the commercial production from the expanded capacities in September 1999 and September 2000. The petitioner submitted certain documents including the project report, copies of certain invoices in support of their claim that the additional capacities became operational on the specified dates. The Authority has carefully examined the contentions of the petitioners and also the documents available on record. It is clear that the petitioner has not been able to furnish any conclusive documentary proof that they had begun commercial production from the expanded capacities during the stated periods. The balance sheets of the concerned periods also do not show the increased capacities. At the same time, there are sufficient indications on the basis of the invoices and the production trends that some quantities of the product under consideration would have been the produced from the expanded capacities. In view of the facts and circumstances of this case, the Authority is of the view that capacity utilization in this specific case cannot be considered as a relevant factor for injury analysis.
(b) Sales and Market Share:-
The quantum of sales made by the petitioners and the value thereof were as follows:-
| Year | Volume (MT) | Price (Rs/MT) |
|---|
| 1998-99 | 10018.14 | *** |
| 1999-2000 | 22691.36 | *** |
| POI | 25237.91 | *** |
Sales (MT)
| Series | 1999-2000 | POI |
|---|
| 200 | 7246.05 | 9258.48 |
| 300 | 14733.54 | 11736.06 |
| 400 | 622.04 | 4243.37 |
| Total | 22691.36 | 25237.91 |
As regards sales price the apparent improvement has been attributed to the increase in the cost of the major raw materials. The average LME prices of nickel have gone up from USD 4639/MT in Jan-March’99 to USD 8382/Mt in the POI. The apparent increase in the sales price is not real and not adding to the net sales realisation of the petitioner. The increase does not cover the direct increase in the raw material prices. Overall sales quantity have shown marginal improvement.
The demand of CR Flat products of stainless steel was approximately 36,690 MT, 58,486 MT and 47,703 MT in 98-99, 99-2000 and the POI respectively. The annualized demand for the POI is 63,604 MT. The share of total imports in demand was 72.69%, 61.20% and 47.09% in 98-99, 99-2000 and the POI respectively. The share of dumped imports from the subject countries in demand was 49.72%, 44.45% and 40.16% in 98-99, 99-2000 and the POI respectively. The share of the domestic industry was 27.30 %, 38.79 % and 52.90% in 98-99, 99-2000 and POI respectively.
(d) Price undercutting and price depression
The landed prices of the imported material as per DGCIS data are below the non-injurious price of the domestic industry .
Rs/MT
| Year | Sales Realisation of Dom.
Industry | Landed Price of Imports |
|---|
| | | EU | Japan | Canada | USA |
|---|
| 1998-99 | *** | *** | *** | *** | *** |
| 1999-2000 | *** | *** | *** | *** | *** |
| POI | *** | *** | *** | *** | *** |
(d) Profitability:-
The domestic industry has been forced to reduce its selling prices below its cost of production, resulting in substantial financial losses. The petitioner has incurred losses of Rs 2269.61 lacs in 1999-2000 and Rs 5403.64 lacs in the POI. The injury to the domestic industry is evident from the per unit profit/loss made by the industry from sales in the domestic markets, as shown below:-
| Rs/kg | 97-98 | 98-99 | 99-2000 | POI |
|---|
| Jindal Strips | | | | |
| COP (Rs. /MT) | | | | |
| All series | --- | --- | *** | *** |
| 200 series | --- | --- | *** | *** |
| 300 series | --- | --- | *** | *** |
| 400 series | --- | --- | *** | *** |
Selling Price
(Rs/MT) net of excise | | | | |
| All series | *** | *** | *** | *** |
| 200 series | --- | --- | *** | *** |
| 300 series | --- | --- | *** | *** |
| 400 series | --- | --- | *** | *** |
| P/L (Rs. /MT) | | | | |
| All series | --- | --- | (***) | (***) |
| 200 series | --- | --- | (***) | (***) |
| 300 series | --- | --- | (***) | (***) |
| 400 series | --- | --- | (***) | (***) |
It can be seen from the table above that while cost of production has increased, the sales realisation has not increased proportionately. The domestic industry is suffering serious injury in the form of direct losses per unit of sale. In the instant case, it is the price effect of dumping which is extremely significant as compared to the volume effect. It is the price factor alone which has led to extensive injury to the domestic injury. It is extremely damaging to the interests of the domestic industry to continue to suffer losses despite substantial investments in capacity enhancement and technology upgradation.
(e) Closing Stocks (MT)
The closing stocks of the petitioners were as given in the table below:-
| Closing Stocks (MT) | 98-99 | 99-2000 | POI |
|---|
| | 756 | 1732 | 1943 |
The petitioners closing stocks have increased.
(g)Loss of potential sales:-
Due to the continued dumped imports from the subject countries the domestic industry has also lost potential sales.
(h)Price Erosion:-
The domestic industry had to reduce its prices which led to loss of revenue due to the dumped imports from the subject countries. The petitioner in order to match declining prices of the article from the subject countries have either loss sales or in order to retain customer base have been forced to sell at suppressed prices. This is evidenced by the price realisation of the petitioner for the period 1998-99, 1999-2000 and POI.
(i)Evidence of lost contracts:-
The complainant domestic industry tried its best to hold on to the customers. Yet the fact that huge quantities of dumped imports arrived into India during POI is adequate evidence that it lost potential customers.
(j)Employment:-
The manpower strength which was 295 in 1998-99 is 417 in the period of investigation.
(k) Actual and potential negative effect on cash flows:-
Considering the direct cash losses in the CR division,the domestic industry is having difficulties in cash management.
(l) Wages:-
There was no impact on wages as it is not feasible under the existing laws/situation to vary the wages in line with the financial performance of the company.
(m) Growth:-
The domestic industry has been making all attempts to out in additional funds to increase its capacities but it is becoming increasing difficult to sustain or service such investments in view of the poor financial performance due to dumping.
(n) Return on Investment (Capital Employed):-
Due to severe underselling by the subject countries, the domestic industry is incurring heavy losses and, therefore, there is no question of any positive Return of Investment.
H. CONCLUSION ON INJURY7. In view of the foregoing the Authority confirms the conclusions on injury at Para O of the Provisional Findings and reiterates that:-
(a) cold rolled flat products of stainless steel described under para B originating in or exported from the subject countries/territory have been exported to India below normal value, resulting in dumping;
(b) the domestic industry has suffered injury;
(c) injury has been caused by imports from the subject countries/territory.
I. CAUSAL LINK8. It is clear from the data available with the Authority that the imports of subject goods from other than subject countries are either de minimis or not exported at dumped prices. Further, the demand of the subject goods in the country is more or less stable and contraction of demand is not a factor of injury to the domestic industry. The Authority notes that dumped imports account for 40.16% of demand. The share of the imports from the subject countries/territory as a percent of the total imports has gone up from 68.40% in the year 1998-99 to 72.63% in 1999-2000 to 85.29% during the period of investigation. The volume effect of dumped imports is thus established. In examining the price effect, the Authority notes that the low priced imports from the subject countries/territory has forced the petitioner to sell at suppressed prices and incur losses on the sale of the subject goods during the period of investigation. Dumped imports of subject goods has prevented the domestic industry from realizing a reasonable remunerative selling price in the domestic market. The domestic industry in its attempts to match the dumped import prices was forced to sell below its non-injurious price which resultantly, the domestic industry was unable to recover. No other factors other than dumping have been brought to the notice of the Designated Authority which could have been considered as a factor causing injury to the domestic industry. The causal link between material injury to the domestic industry and the dumped imports is, therefore, clearly established. The Authority therefore holds that the material injury to the domestic industry was caused by the dumped imports from the subject countries/territory.
J. Anti-Dumping duty imposed:-The Authority has carefully evaluated the injury caused to the domestic industry on account of dumping of Cold Rolled Flat Products of Stainless Steel and has recommended the amount of anti-dumping duty equivalent to the dumping margin or less, which if levied, would remove injury to the domestic industry.
K. FINAL FINDINGS:-9. The Authority after considering the foregoing, concludes that:
(a) Cold Rolled Flat Products of Stainless Steel originating in or exported from EU, Japan, USA and Canada has been exported to India below normal value, resulting in dumping;
(b) the domestic industry has suffered injury;
(c) injury suffered by the domestic industry is on account of the dumped imports from the subject countries/territory.
10. It was decided to recommend the amount of anti-dumping duty equal to the margin of dumping or less, which if levied, would remove the injury to the domestic industry. The landed price of imports was also compared with the non-injurious price of the domestic industry, determined for the period of investigation. The weighted average landed values for the 200, 300 and 400 series was compared with the NIP determined for the domestic industry for the said series. Accordingly, it is proposed that provisional anti-dumping duties be imposed, from the date of notification to be issued in this regard by the Central Government, on Cold rolled Flat Products of stainless steel, of a width of 600mm or more, whether further processed or not of all grades/series classified under Customs sub-heading nos. 7219.31, 7219.32, 7219.33, 7219.34, 7219.35 and 7219.90 of Chapter 72 of the Customs Tariff Act, 1975. The anti-dumping duty shall be the difference between the amount mentioned in Col.4. and the landed value of imports.
Country/Territory
1. | Group/Series
2. | Producer/Exporter
3. | Amount (USD/MT)
4. |
|---|
| European Union | 300 series | | |
| | | (1) M/s Acerinox S.A., Spain | 2431 |
| | | (2) ALZ nv, Belgium | 2431 |
| | | (3) All other exporters | 2431 |
| | 400 series | | |
| | | (1) M/s Acerinox S.A., Spain | 1470 |
| | | (2) M/s ALZ nv, Belgium | 1470 |
| | | (3) All other exporters/producers | 1470 |
| | All other groups /series 200 series | (3) All exporters/producers | 1899 |
| Japan | 400 series | | |
| | | 1) M/s Kawasaki Steel Corporation and M/s Kawasaki Steel Corp in conjunction with Kawasho Corp, Sumitomo Corp and Nikko Boeki Kaisha Ltd. etc | 1470 |
| | | (2) All other exporters | 1470 |
| | All other groups/Series
200 series
300 series | (3) All exporters/producers |
1899
2431 |
| Canada | All groups/series
200 series
300 series
400 series | All exporters/producers |
1899
2431
1470 |
| USA | 300 series | | |
| | | (1) M/s North American Stainless | 2431 |
| | | (2) All other exporters/producers | 2431 |
| | All other groups/Series
200 series
400 series | (3) All exporters/producers |
1899
1470 |
11. Landed value of imports for the purpose shall be the assessable value as determined by Customs under the Customs Act, 1962 and all duties of customs except duties levied under Sections 3, 3A, 8B, 9 and 9A of the Customs Tariff Act, 1975.
12. Subject to the above, the Authority confirms the preliminary findings dated 29th November, 2001.
13. An appeal against this order shall lie before the Customs, Excise and Gold (Control) Appellate Tribunal in accordance with the Act, supra.
Sd/-
(LV Saptharishi), Designated Authority
Notification No. 24/1/2001-DGAD dated the 13th November, 2002CR Flat Products of SS
– Corrigendum to Final Findings Notif. dt. Oct. 19, 02
Subject: Anti-dumping investigation concerning import of Cold Rolled Flat products of stainless Steel originating in or exported from European Union Japan, Canada and USA.
No. 24/1/2001-DGAD.-The Designated Authority, having regard to the Customs 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, hereby makes the following clarification in the Final Findings notified vide notification No. 24/1/2001-GDAD dated 19th october, 2002.
Para 10 of the Final Finding shall read as follows:
10 “It was decided to recommend the amount of anti-dumping duty equal to the margin of dumping or less, which if levied would remove the injury to the domestic industry the landed price of imports was also compared with the non-injurious price of domestic industry determined for the period of investigation. The The weighted average landed values or the 200, 300 and 400 series was compared with the NIP determined for the domestic industry for the said series. Accordingly, it is proposed that definitive anti-dumping duties be imposed on Cold Rolled Flat Products of stainless steel of a width of 600 mm of more whether further processed or not of all grades/series classified under Customs sub-heading Nos. 7219.31, 7219.32, 7219.33, 7219.34, 7219.35 and 7219.90 of Chapter 72 of the Customs Tariff Act, 1975. The anti-dumping duty shall be the difference between the amount mentioned in Col. 4 and the landed value of imports.”
The table in para 10 remains unchanged.
Sd/-
L.V. Saptharishi,
Designated Authority
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