NOTIFICATION NO. 14/25/2002-DGAD DATE 01/11/2002
Anti-dumping investigation concerning imports of Vitamin C from USA and Canada-Preliminary Findings.The Government of India 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:
A. PROCEDURE i. The procedure described below has been followed with regard to the investigations:
ii. The Designated Authorit100y (hereinafter referred to as Authority), under the Rules, received written application from M/s. Ambalal Sarabhai Enterprises, alleging dumping of Vitamin -C originating in or exported from USA and Canada.
iii. The Authority, on the basis of sufficient evidence submitted by the Petitioner, decided to initiate investigations against imports of Vitamin C from the subject countries. The Authority notified the Embassies/Delegations of the subject countries about the receipt of dumping allegation before proceeding to initiate the investigations in accordance with sub rule 5(5) of the Rules;
iv. The Authority issued a public notice dated 14th August 2002 published in the Gazette of India, Extraordinary, initiating anti-dumping investigations concerning imports of Vitamin C, classified under sub-heading 2936 2700 of Schedule I of the Customs Tariff Act, 1975, originating in or exported from USA and Canada.
v The Authority forwarded a copy of the public notice to the known exporters (whose details were made available by the petitioner) and industry associations and gave them an opportunity to make their views known in writing in accordance with the rule 6(2);
vi. The Authority forwarded a copy of the public notice to the known importers of Vitamin C in India and advised them to make their views known in writing within forty days from the date of the letter.
vii. Request was made to the Central Board of Excise and Customs (CBEC) to arrange details of imports of Vitamin -C for the past three years, including the period of investigation.
viii. The Authority provided a copy of the petition to the known exporters and the Embassies/Delegation of the subject countries in accordance with rules 6(3) supra:
ix The Authority sent questionnaire, to elicit relevant information, to the following known exporters, in accordance with the rule 6(4);
USA· M/s. Roche Vitamins, Inc., USA
· M/s. Tech International, USA
· M/s. Jade World Trading, USA
CANADA· M/s. Laboratories Confab Inc. Canada
· M/s. Novopharm International. Canada.
· M/s. Pharnasclence Inc. Canada
· M/s. Pro-Amino International Inc. Canada.
· M/s. LIOH Inc. Canada.
· M/s. Pharmaboiotics Inc. Canada.
· M/s. Pharmetics. Canada
· M/s. Sabex Inc. Canada
· M/s Stanley Pharmaceuticals Ltd. Canada
· M/s Watford Chemicals Co. Canada Limited .Canada
· M/s Vita Health Company ( 1985) Ltd.,
X. The Embassies of the subject countries in New Delhi were 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, petition and questionnaire sent to the exporter was also sent to the Embassies/Delegations, along with a list of known exporters/producers;
XI. A questionnaire was sent to the following known importer/wholesale dealers of Vitamin-C in India calling for necessary information in accordance with rule 6(4):
· M/s Anglo French Drugs & Industries Ltd. Bangalore.
· M/s Amstrin Pharma Pvt Limited, Mumbai
· Aviat Chemicals Pvt. Limited, Mumbai
· Atra Pharmaceuticals Limited, Aurangabad
· BASF India Limited, Navi Mumbai
· Banner Pharmacap P Limited Gujarat
· Bezel Pharma Pvt. Limited, Mumbai
· Beassica Pharmaceuticals & Chemicals, Mumbai
· Chimanova Remedies limited, Hyderabad
· Heinz India Limited, Aligarh
· Liva Pharma Limited, NASIK
· CFL Pharmaceuticals Limited, GOA
· Dr. Reddy Laboratoris Limited, AP
· Emil Pharmaceuticals Industries , Thane
· ESPI Ind. & Chem. Pvt. Limited, Hyderabad
· Merck India Limited, Mumbai
· Glaxo Smithkline Pharma Limited, Mumbai
· Gandhi Pharmaceuticals, Chennai
· Ahinsha Laboratories P Limited, Shadnagar AP
· Remedies Pvt. Limited, Hosur Ap
· Remidex Pharma P Limited, Bangalore
· Sunray Pharma P Limited, Bhimavaram
· Meyer Organics Limited, Thane
· Medibios Laboratories P Limited, Thane
· Micro Nova Pharma Limited, Bangalore
· Nicolas Pharma Limited, MP
· Omni Protech Drugs Limited, Pune
· Pharma pak p Limited, Mumbai
· Safex International, Ahmedabad
· Softesure P Limited, Mumbai
· Saicure Pharmaceuticals P Limited, Ahmednagar
· Sain Medicaments P Limited, Hyderabad
· Sai Mirra Innopjarm P Limited, Chennai
· Swifi Chemicals Ltd. Mumbai
· Stand Pharma Ltd. Mumbai
· Teekay Menthol Pvt Ltd. Mumbai
· Vital Therapetuice Pvt Ltd. Secunderabad
· Venyl Indus Ltd. Velhe
· PFIZER Limited, Mumbai
XII Additional information regarding injury was sought from the petitioner, which was also received;
XIII The Authority kept available non-confidential version of the evidence presented by various interested parties in the form of a public file maintained by the Authority and kept open for inspection by the interested parties;
XIV The Authority, based on the information furnished by the petitioner , worked out optimum cost of production/cost to make and sell in India on the basis of Generally Accepted Accounting Principles (GAAP);
XV *** in this notification represents information furnished by the petitioner on confidential basis and so considered by the Authority under the Rules.
XVI The investigations covered the period of 1st April, 2001- 31st March, 2002 (12 months);
B PETITIONER’S VIEWS The petitioner has expressed the following views with regard to dumping of VitaminC and the injury to domestic industry as a consequence thereof:
(1) Dumping :
(a) Vitamin C is being dumped in India by the exporters from subject countries. Imports from these countries are not only substantial but also bench marking the price of the Vitamin C in Indian Market.
(b) The producers in USA, Canada have reduced their price in the Indian market.
(c) Vitamin C is shipped in India directly from USA, Canada as per information.
(d) The petitioner has provided price list of a company in USA as evidence of Normal Value in USA. The petitioner has stated that since Canada is in the same region/continent and there is no customs barrier between Canada and USA, the prices in the domestic market of Canada would not be different than the domestic market of USA. Petitioner states that giving undue benefit to the exporter, petitioner considered lowest price and in highest packing, which shows lowest price in all the grade mentioned in the price list.
(e) The petitioner has provided export quantities and prices on the basis of DGCI&S. The petitioner has claimed adjustments on account of landing charges, ocean freight, marine insurance, commission, Inland freight, port expenses.
(f) The petitioner on the basis of the above normal value and export price has claimed dumping margin as 98.72% and 118.40% for USA and Canada respectively.
(2) On injury and Causal Link:
The petitioner has suffered injury as would be seen from the following: -
(a) Vitamin –C is a drug: the price of which are Controlled under DPCO (Drugs Price Control Order) and the price control has been in force the year 1970 onwards.
(b) The margin of dumping from each of the subject countries is more than the limits prescribed. Quantum of imports from subject countries and other countries is available with the Designated Authority. Petitioner has claimed cumulative assessment of the effects of imports since the exports price from the subject countries directly compete with the price offered by the domestic industry in the Indian market. Petitioner has requested assessment of injury to the domestic industry cumulatively from all the subject countries.
(c) The production has increased marginally. However, sales of the domestic industry declined in Period of Investigation.
(d) They have also submitted that should the current trend of volume of imports from these countries continue, the domestic industry would collapse, as the landed price of imports from the subject countries is significantly below the selling price of the domestic industry.
(e) Vitamin –C average domestic realization of petitioner has declined during 2001-2002 compared to previous year.
(f) Sales volume of the domestic industry during 2000-2001 was 562.20 MT, which was reduced to 454.80 during the period of investigation. The average monthly sales volume of domestic industry declined in the period of investigation.
(g) Due to tremendous price under cutting by the dumped imports, the domestic industry is forced to sell the subject material at price below from the DPCO price.
(3) As in the case of most of the bulk drugs- Vitamin C also has several names and synonyms and hence a number of unscrupulous importers import the material under one name or other which may not be known to Customs Officials at various ports of countries. The Petitioners have requested the Authority to examine the scope and possibility of including all the names and synonyms of Vitamin C as it appears in ‘ The Merck Index ‘ an encuclopedia of Chemicals, Drugs and Biologicals published by Merck Research Laboratories;
C VIE W OF EXPORTERS, IMPORTERS AND OTHER INTERESTED PARTIES 3.0 Views of Exporters:
M/s Roche Scientific Co. (I) Pvt Ltd, Vitamins & Fine Chemicals Division, Mumbai
M/s. Roche, Mumbai have indicated that neither the exporter nor its affiliated have received communication regarding the petition and primary investigation for anti dumping duty on Vitamin ‘C’ of USA origin. They have requested the Authority to give at least one month extended period for contesting the case.
M/s Vita Health Products,150,Beghin Avenue, Winnipeg, Manitoba R 21 3w2
They have informed that they will not be completing the questionnaire as M/s. Vita Health Products Inc. has not exported Vitamin ‘C’ to India during the period of investigation. They have also indicated that M/s. Stanley Pharmaceuticals (owned by Vita Health Products since the year 2000) have not exported Vitamin ‘C’ to any origanisation in India.
M/s Tech International, Johnstown, OH 43031.
They have stated that Tech International is a manufacturer of Rubber Tubes and Tyres repairs. Tech products are widely used in tyre industry, passenger vehicles, trucks and buses. They have indicated that they are not in the business of Vitamin ‘C’ and its derivatives and have not exported Vitamin C in any form to India.
M/s. Watford Chemicals Co.Ltd.
The exporters have indicated that they have not exported Vitamin C to India directly or indirectly. They have stated that they have exported to North America and Europe only.
Canadian High Commission, New Delhi
They have stated that they have contacted exporters identified in the complaint and have confirmed that there were no exports of Vitamin ‘C’ made by Canadian exporters to India. The Canadian export statistics and World Trade Atlas, (a data bank on global exports and imports) shows nil exports during the period of investigation. In the circumstances, they have requested the Authority to terminate the investigation.
M/s Novopharm Limited, Ontario , Canada
They have stated that they did not manufacture Vitamin C and have not made any sale to India during the period of investigation;
Views of Importers/ Users:-
M/s Gandhi Parmaxeuticals, Chennai
M/s Bajaj Health Care, Mumbai
M/s The Chemists & Druggists Association , Bombay
M/s Kawarlal & Sons, Chennai,
(a) Domestic Industry is importing the final stage intermediate 2-Ketogluonic Acid from China and their cost of production is substantially lower than the producer in exporting countries.
(b) There is difference between the technologies adopted by the petitioner and by produced by the subject countries.
(c) The cost of production from 2-Ketogluonic Acid is much less. If the same cost of production is assumed for China Taipei, the normal value of Manufacturer in China Taipei can not be USD 11.66/Kg. This clearly shows that the data have been fabricated by the petitioners.
(d) Amoli Organics Limited is a new entrants in the market and having much lesser production share as stated in the petition. However, imports have not caused any injury to them as well as to us. This shows that they are inefficient and incapable due to which they are suffering injury. They have deliberately withheld information about other manufacturer of the product such as M/s. New - S - Chem Search Limited, M/s. Kerbs Biochemicals Limited, M/s. Cardinals Drugs Limited, M/s. Lachem Pharmaceuticals Limited. M/s. Tonira Pharma Limited, M/s. Lacure Pharmaceuticals Limited etc. to whom no injury is caused due to imports.
Authority’s Position
As regards to extension of time sought by M/s Roche it is noted that the company has failed to give sufficient reasons while seeking extension of time as envisaged in the Rules, hence no extension was allowed;
As regards to claims of nil export from subject country Canada, it is noted that substantial imports have been reported by DGCI & S, Calcutta. Evidence of Imports submitted by the Petitioners as reported by ‘Chemical Weekly’, Mumbai, show that there has been imports from Canada;
D EXAMINATION OF ISSUES RAISED4.0 The submissions made by the petitioner and other interested parties have been examined and issues with reference to the Rules and having a bearing on this case have been considered and dealt with at appropriate place in the notification.
E PRODUCT UNDER CONSIDERATION & SCOPE OF INVESTIGATION5.0 The Product under Consideration in the present investigation is Vitamin C originating in or exported from USA and Canada. Vitamin C is classified under the Customs sub-heading no. 2936.27 in the Customs Tariff Act, 1975. The classification is, however, indicative only and in no way binding on the scope of the present investigation.
F LIKE ARTICLES:6.0 Rule 2(d) of the Anti dumping Rules specifies that "Like Articles" means an Article, which is identical or alike in respects to the product under investigation or in the absence of such an Article, another article, having characteristics closely resembling those of the articles under examination
The petitioners have claimed that the Vitamin-C produced and sold by them and those imported from the subject countries have similar characteristics and should be treated as like articles. They have also claimed that there is no significant different in the technology adopted by petitioner and by the producers in these countries. Though, every manufacturer fine-tunes production process according to available facilities and necessities.
7. The Authority also finds that there is no argument disputing that Vitamin C produced by the domestic industry has characteristics closely resembling the imported material and is substitutable by Vitamin C imported from the subject countries both commercially and technically. Vitamin C produced by the domestic industry has been treated as Like Article to the product exported from USA and Canada within the meaning of Rule 2(d).
G DOMESTIC INDUSTRY8.1 The petition has been filed by M/s. Ambalal Sarabhai Enterprises Limited having its Registered Office at Wadi, Baroda-390007. There are two producers of Vitamin C in India. M/s. Amoli Organics Limited, is the other producer of the product. Earlier, M/s. Jayant Vitamin Limited had also created capacity from production of Vitamin-C, however, the company is closed.
8.2 Authority notes, M/s New S-hem Search Ltd, Vadodara & M/s Kerbs Bio Chemicas Ltd;, Hyderabad have started production after the period of investigation, whereas, other units like M/s Cardinals Drugs Ltd, M/s Tonira Pharma etc are reported making the product for export purposes. Further M/s Bajaj Health Care has not given any quantified data either about these companies or their own status of subject goods. The petitioner accounts for major proportion of the Indian production and represents the domestic industry, as required under the Rules.
H DUMPING9.0 NORMAL VALUE EXPORT PRICE AND DUMPING MARGIN AND EXAMINATION BY THE AUTHORITY IS DISCUSSED HEREUNDER.
Normal value
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 mark 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 alongwith 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 or origin".
9.2 The Authority sent questionnaires to all the known exporters and producers of Vitamin C in Subject Countries. However, none of the exporters from subject countries responded to the Authority and have not furnished any information in the form and manner prescribed by the Authority. The Authority, therefore, holds that none of the exporters from subject countries have co-operated with the Authority as envisaged under the rules. In the circumstances Normal Value has been based on the price information provided by the domestic industry and the best information available in respect of USA. For Canada normal value has been based on the price in same region/ continent. The Normal Value for USA has been determined at US $ *** per Kg and for Canada at US $ *** per Kg respectively.
Export Price:
9.3 None of the exporters from subject countries responded to the Authority and have not furnished any information. The Authority have therefore, determined export price on the basis of best available information. Vitamin C is classified under Customs sub-heading no. 2936.27. The export price has been determined on the basis of the information compiled by DGCI&S for the period of investigation.
The average export price has been adjusted for commissions, inland freight, overseas freight, packing & handling charges. The export price has been determined at US$ *** per Kg in respect of USA and at US $ *** per Kg in respect of Canada respectively.
9.4 Dumping Margin:
The Rules relating to comparison provides comparison of normal value and export price provides as follows:
"While arriving at margin of dumping Designated Authority shall make a fair comparison between the export price and the normal value. A comparison shall be made at the same level of trade, normally at ex-works level and in respect of sales made and as nearly possible the same time. Due allowance shall be made in each case on its merits, for differences which occur price comparability including differences in conditions and terms and sales, taxation, levels of trade quantities, physical characteristics and any other differences which are demonstrated to affect price comparability".
COUNTRY | D M as a % of Export price |
---|
USA | 97.80 |
CANADA | 112.26 |
10.0 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 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;
Rule (iii) of the Annexure II to the Rules requires that in case imports of a product from more than one country are being simultaneously subjected to anti-dumping investigation, The Authority will cumulatively assess the effect of such imports. Such assessment can be, however, made only if it is determined that:
a) the margin of dumping in relation to the imports from each country is more than two percent expressed as percentage of export price and the volume of the imports from each country is three percent of the import of the like article in India, and
b) the 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.
2. Substantial increase in import from the subject countries in absolute term:
The imports of Vitamin-C from the subject countries have increased in absolute terms. The Annexure-II (ii) of the Indian Anti-dumping rules provides as under: -
"While examining the volume of dumped imports, the said authority shall consider whether there has been a significant increase in the dumped imports, either in absolute terms…"
In the instant case, the imports of Vitamin-C from the subject countries have increased significantly in absolute terms, as may be seen from the table below:
Particulars | Unit | 1998-99 | 1999-00 | 2000-01 | 2001-02 |
---|
Imports | | | | | |
Imports-China* | MT | 405.54 | 227.73 | 290.67 | 130.97 |
Imports-Japan* | MT | 312.70 | 239.70 | 49.50 | 1.70 |
Imports EU and Russia* | MT | 267.20 | 631.60 | 43.54 | 16.84 |
Imports from -Countries attracting duty* | MT | 985.45 | 1099.03 | 383.70 | 149.51 |
USA | MT | 63.11 | 134.76 | 51.33 | 230.51 |
Canada | MT | 0.00 | 7.00 | 27.40 | 152.08 |
USA, Canada | MT | 63.11 | 141.76 | 78.72 | 382.58 |
Imports Other than above | MT | 9.36 | 41.78 | 18.00 | 76.31 |
Total Imports | MT | 1057.91 | 1282.57 | 480.43 | 608.41 |
* Countries already attracting Anti Dumping Duty. |
Total Domestic Production | MT | 269.28 | 237.25 | 544.88 | 456.30 |
Demand in the Country | MT | 1327.20 | 1519.82 | 1025.31 | 1064.71 |
Market share in Imports | | | | | |
Countries attracting duty | % | 93.15 | 85.69 | 79.87 | 24.57 |
USA | % | 5.97 | 10.51 | 10.68 | 37.89 |
Canada | % | 0 | 0.55 | 5.7 | 25.00 |
USA, Canada ( Total Imports) | % | 5.97 | 11.06 | 16.38 | 62.89 |
Imports from Other countries | % | 0.88 | 3.26 | 3.75 | 12.54 |
Total | % | 100.00 | 100.0 | 100.00 | 100.00 |
Import data As per DGCI&S
It may be seen from the above table that there is significant increase in imports of Vitamin-C in India from subject countries in the period of investigation.
3. Significant decline in export price:
More significant that the volume of imports is the price effect of imports. The exporters from the subject countries have reduced the prices significantly, as may be seen from the following table:
Rs. Per KG | 1998-99 | 1999-00 | 2000-01 | 2001-02 |
---|
USA | 280.64 | 271.80 | 263.60 | 244.77 |
CANADA | - | 261.97 | 268.01 | 219.06 |
It is evident from the above, average export price from subject countries have declined.
4. Production of the domestic industry:
The production of the domestic industry has increased over years till 2000-01, declined in the period of investigation. Further, the price at which the industry has been forced to sell the product is not remunerative price, hence causing injury to the domestic industry.
5. Sales volume of the petitioner (s)
Authority notes that the sales volume of the industry have declined over the period, the industry has been forced to reduce its prices significantly at the cost of its profitability in view of the dumped imports.
6. Selling price
The industry has been forced to reduce its selling prices as may be seen from the following table, in view of cheap imports in the market:
Year | Sales realization Rs.Per Kg. |
---|
1998-99 | 100 |
1999-2000 | 91.11 |
2000-2001 | 98.44 |
2001-2002 | 86.89 |
Note: Indexed figures
It is evident from the above that the selling price of the domestic industry have declined over the years. Selling price have increased marginally in 2000-01 over, 1999-00, however, the same declined again in the investigation period.
7. Price undercutting
The Authority notes that the dumped imports have forced the domestic industry to reduce its prices in spite of increase in the cost of production. The landed value of the imported material is significantly below the selling prices of the domestic industry, causing severe price undercutting in the Indian market.
8. Profitability
The Authority notes that the industry has been forced to keep its selling prices below its cost of production, resulting in continued financial losses to the domestic industry. The production of the domestic industry increased when compared to 1998-99, however, higher production did not help the domestic industry as the domestic industry is still making losses.
9. Price suppression/depression
The Authority notes that the landed value of the imported material is significant below the cost of production of the domestic industry causing price suppression and depression in the Indian market.
10. Conclusions:
a) The dumping margins from the subject countries are significant and volume of imports are more than de-minimus;
b) Imports from subject countries have increased significantly in absolute terms, as also relative to production and consumption in India;
c) The export price from the subject countries has declined significantly.
d) Selling price of the domestic industry have declined significantly.
e) The imports were causing severe price undercutting and prevented the domestic industry from effecting legitimate price increases;
f) The domestic industry has been forced to sell at prices significantly below cost of production.
It may thus be seen that the industry has suffered material injury.
K CAUSAL LINK: The Authority holds that the material injury to the domestic industry has been caused by imports from the subject countries that are major exporters of Vitamin C to India. The Authority notes that import prices from the subject countries have undercut the prices of the domestic product forcing the domestic industry to sell below its cost of production and non-injurious price which resultantly, the domestic industry was unable to recover. The material injury to the domestic industry was therefore caused by the dumped imports from the subject countries.
L Indian Industry’s Interest and other issues: The purpose of anti dumping duties, in general, is to eliminate dumping which is causing injury to the petitioner companies and to re-establish a situation of open and fair competition in the Indian market, which is in the general interest of the country.
It is recognised that 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 on the Indian market will not be reduced by the anti dumping measures, particularly if the levy of the anti dumping duty is restricted to an amount necessary to redress the injury to the petitioner companies. On the country, imposition of anti dumping measures would remove the unfair advantages gained by dumping practices, would prevent the decline of the petitioner company(ies) and help maintain availability of wider choice to the consumers of Vitamin-C. Imposition of anti dumping measures would not restrict imports from the subject countries in any way, and therefore, would not affect the availability of the product to the consumers.
To ascertain the extent of anti-dumping duty necessary to remove the injury to the petitioner companies, the Authority has relied upon non-Injurious selling price of Vitamin-C in India for the petitioner companies, by considering the optimum cost of production at optimum level of capacity utilization for the petitioner companies.
M. LANDED VALUE :- The landed value of imports is determined on the basis of export price of Vitamin C determined as detailed above in the para relating to dumping, after adding the prevailing level of customs duties and one per cent landing charges.
N. CONCLUSIONS: The Authority, after considering the foregoing, concludes that
(a) Vitamin-C (Ascorbic Acid) originating in or exported from USA, Canada and has been exported to India below normal value, resulting in dumping ;
(b) The Indian industry has suffered material injury ;
(c) The injury has been caused cumulatively by the imports from the subject countries.
It is considered necessary to impose anti dumping duty, provisionally, pending final determination, on all imports of Vitamin-C originating in or exported from USA and Canada pending further investigations
The Authority considered recommending the amount of Anti-Dumping Duty equal to the margin of dumping or less, which if levied, would remove the injury to domestic industry. The average landed price of the imports, for the purpose, was compared with the non-injurious selling price of the domestic industry, determined for the period of investigation. Wherever the difference was less than the dumping margin, a duty lower than the dumping margin is recommended. It is considered necessary to impose antidumping duty, provisionally, pending final determination on all imports of Vitamin C originating in or exported from USA and Canada pending further investigation.
Accordingly, the Authority has therefore, decided to recommend provisional Anti-dumping Duty be imposed, on all imports of Vitamin-C and most commonly used synonyms of Vitamin C like Ascorbic Acid, L-Xyloascorbic Acid, 3-Oxo-L-gulofuranolactone (enol form), L-3-Ketothreohexuronic Acid Lactone etc., as described under entry number" 867 of MERCK INDEX"( also referred as subject goods) falling under Custom Heading 2936 originating in or exported from USA and Canada. The Anti-Dumping duty shall be the difference between the amount mentioned in column (3) table below and the landed value of imports per Kg to be imposed from the date of Notification to be issued in this regard by the Central Government on all imports of subject goods falling under Chapter 29 of the Customs Tariff, originating in or exported from subject countries : -
Country | Exporters | Amount (US$ per Kg) |
---|
(1) | (2) | (3) |
---|
United States of America(USA) | -All exporters | 10.11 |
Canada | -All exporters | 10.11 |
Landed value of imports for the purpose shall be the assessable value as determined by the customs under the Customs Act, 1962 and all duties of customs except duties levied under Section 3, 3A, 8B and 9, 9A of the Customs Tariff Act, 1975.
O. FURTHER PROCEDURE The following procedure would be followed subsequent to notifying the preliminary findings:-
(a) The Authority invites comments on these finding from all interested parties and the same would be considered in the final findings:-
(b) Exporters, importers, petitioner and other interested parties known to be concerned are being addressed separately by the Authority, who may make known their views, within forty days from the date of the dispatch of the letter. Any other interested party may also make know its views within forty days from the date of publication of these findings.
(c) The Authority would provide opportunity to all interested parties for oral submissions to be rendered thereafter in writing.
(d) The Authority would conduct further verification to the extent deemed necessary.
(e) The Authority would disclose essential facts before announcing final findings.
Sd/-
(LV Saptharishi)
Designated Authority
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