NOTIFICATION NO. 14/20/2003-DGAD DATE 29/10/2003

Initiation of anti-dumping investigations concerning imports of Nylon Tyre Cord Fabric(NTCF) originating in or exported from China PR.
The Association of Synthetic Fibre Industry (ASFI) has filed a petition on behalf of the members ofthe Association before the Designated Authority (hereinafter referred to as the Authority) in accordancewith the Customs Tariff (Amendment) Act, 1995 and Customs Tariff (Identification, Assessment andCollection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 allegingdumping of Nylon Tyre Cord Fabric (NTCF) originating in or exported from China PR and has requestedfor initiation of anti-dumping investigations and levy of anti-dumping duties.

1. Product Involved: The product under investigation in the present case is Nylon Tyre Cord Fabric(NTCF) originating in or exported from Peoples Republic of China. The subject good is a fabric of nylon,meant largely for tyre cord. NTCF finds application in different kinds of automotive tyres such as bus &truck tyres, two wheeler tyres, cycle tyres, Light commercial Vehicles tyres, Animals Driven vehicles etc.Nylon Tyre Cord fabric is produced using different deniers of yarn. The fabric is used for reinforcement oftyres. The product is sold as "Grey fabric" and also " Dipped fabric". The Indian Tyre Industry is buyingboth Grey and dipped fabric. Irrespective of the categorization, tariff classification of NTCF is common toboth. All types of NTCF are within the scope of the product under consideration and are classified underChapter 59, Custom subheading no. 5902.10.00 of the Custom Tariff Act. The classification is howeverindicative only and in no way binding on the scope of the present investigations.

2. Domestic Industry Standins: The Association of Synthetic Fibre industries (ASFI) New Delhi hasfiled the petition on behalf of M/s SRF Limited, Chennai, M/s NRC Limited Mumbai, M/s Century EnkaLimited Pune, and M/s Nirlon Ltd Mumbai who are the producers of NTCF in India and who are themembers of the association.

3. Country (ies) Involved: The country involved in the present investigations is the Peoples Republicof China, (hereinafter referred to as China PR).

4. Like Goods: The petitioner has claimed that goods produced by it are Like Articles to the goodsoriginating in or exported from China PR. In view of the same, it is stated that the subject goods (in variousgrades) produced by the domestic industry and imported from China PR are comparable in terms ofessential product characteristic such as physical and chemical characteristic, manufacturing process andtechnology, function and uses, products specifications, pricing, distribution and marketing and tariffclassification of goods. Both are technically and commercially substitutable. Good produced by thepetitioner are being treated as Like Articles to the goods imported from the subject country within themeaning of the Rules.

5. Dumping and Dumping Margin:

Normal Value: The petitioners have claimed normal value in China on the basis of the constructed costof production assessed separately for grey NTCF and dipped NTCF.

The Authority notes that China PR is stated in the petition to be a non-market economy. While, for thepurpose of initiation, the normal value in this country has been considered based on the constructed costof production of the subject goods in the said country, the Authority proposes to examine the. claim of thepetitioner in the light of para (7) and (8) of Annexure II of the Anti-Dumping Rules as amended.Export price: The petitioners have claimed export price based on transactionwise data as per Customsports provided by International Business Information Services. Considering tile normal value and exportprice the dumping margins for Grey and Dipped NTCF are significantly higher than the de-minimis limit.There is sufficient evidence that the normal value of the product under consideration in China PR issignificantly higher than the price at which it has been exported to India, indicating, prima facie, that thesubject goods are being dumped by the exporters from China PR.

6. Injury and Causal Link: The various economic indicators relating to domestic industry collectivelyand cumulatively, prima facie indicates that the domestic industry has suffered injury. There is sufficientprima facie evidence that the imports of the product under consideration have caused material injury to thedomestic industry.

7. Initiation of Anti-Dumping Investigation: In view of the foregoing paragraphs, the DesignatedAuthority initiates anti-dumping investigations to determine the existence, degree and effect of allegeddumping of the subject goods originating in or exported from the subject country.

8. Period of Investigation: The period of investigation for the purpose of the present investigationsis 15th April, 2002 to 3 0 June 2003 (15 months).

9. Submission of Information: The exporters in the subject country and the importers in India knownto be concerned are being addressed separately to submit relevant information in the form and mannerprescribed and to make their views known to the Designated Authority, Ministry of Commerce, DirectorateGeneral of Anti-Dumping, Udyog Bhavan, New Delhi - 110011. Any other interested party may also make itssubmissions relevant to the investigation in the prescribed form and manner within the time limit set out below.

10. Time Limit: Any information relating to the present investigations should be sent in writing so as toreach the Authority at the address mentioned above not later than forty days from the date of publication ofthis 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 letter addressed to them separately. Itmay kindly be noted that no requests whatsoever shall be entertained for extension of the above statedtime limit for submission of the required information.

11. Anti-dumping investigations being a time bound exercise, the Designated Authority may record itsfindings on the basis of facts available on record in accordance with the Rules supra, if no response isreceived within the time stipulated or the information is incomplete in any respect.

12. Inspection of Public File: In terms of Rule 6(7), any interested party may inspect the public filecontaining non-confidential version of the evidence submitted by other interested parties.

13. In case where an interested party refuses access to, or otherwise does not provide necessaryinformation within a reasonable period, or significantly impedes the investigation, the Authority may recordits findings on the basis of the facts available to it and make such recommendations to the CentralGovernment as deemed fit.

Sd/-
(L.V Saptharishi)
Designated Authority

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