Imports of 1-Phenyl-3-Methyl-5-Pyrazolone from China PR - Sl-93

INITIATION NOTIFICATION

Initiation of Sunset Review Investigation of Anti-dumping
duty on import of 1-Phenyl-3-Methyl-5-Pyrazolone
originating in or exported from China PR in 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, the Designated Authority (hereinafter referred to as Authority) recommended imposition of Anti-Dumping Duty on imports of 1-Phenyl-3-Methyl-5-Pyrazolone (hereinafter referred to as subject goods) originating in or exported from China PR (hereinafter referred to as subject country) vide final findings notification No.14/11/2004-DGAD dated 16th November 2005. Based on the findings of the Authority, definitive anti-dumping duties on the subject goods imported from subject country was imposed by the Department of Revenue vide Customs notification No.1/2006 dated 10th January 2006.

2. The Authority initiated sunset review investigations vide Notification No.15/5/2010-DGAD dated 1st July 2010. The Authority recommended continuation of imposition of definitive anti-dumping duties on imports from China PR vide notification No.15/5/2010-DGAD, dated 29th June, 2011 and the Department of Revenue imposed definitive anti-dumping duty vide notification No.80/2011-Customs, dated the 24th August, 2011 on all imports of subject goods originating in or exported from China PR.

3. Whereas, in view of the duly substantiated application filed and in accordance with Section 9 A (5) of the Act, read with Rule 23 of the Anti-dumping Rules, the Authority hereby initiates a Sunset review investigation to review the need for continued imposition of the duties in force in respect of the subject goods, originating in or exported from the subject country and to examine whether the expiry of such duty is likely to lead to continuation or recurrence of dumping and injury to the domestic industry.

Domestic Industry & Standing

4. The petition has been filed by M/s Prima Chemicals and M/s Polygon Chemicals. However, as of 1st April 2016 and henceforth, Polygon Chemicals has merged with Prima Chemicals.

5. As per the submission on record, the production of the applicant companies constitutes “a major proportion” of the domestic production and, therefore, the applicant companies constitute eligible domestic industry within the meaning of Rule 2 (b) of the Anti-Dumping Rules and the application satisfies the criteria of standing in terms of Rule 5 (3) of the Rules supra.

Product under consideration

6. The product under consideration is 1-Phenyl-3-Methyl-5-Pyrazolone. 1-Phenyl-3-Methyl-5-Pyrazolone is an organic compound which finds application as a dye intermediate. It is also used in Pharmaceuticals for production of Analgin.

7. 1-Phenyl-3-Methyl-5-Pyrazolone is classified under Customs sub heading no.2933 19 20 under Chapter 29 of the Customs Tariff Act, 1975. However, Customs classification is indicative only and in no way binding on the scope of the subject investigation.

8. This being a Sunset Review of the product on which Anti-Dumping Duty is already in force, the definition of the Product under consideration is the same as mentioned in the original investigation.

Countries involved

9. The present investigation is in respect of alleged dumping of the product under consideration from China PR.

Normal Value

10. The applicants have claimed that China PR should be treated as a nonmarket economy and determined normal value in accordance with Para 7 and 8 of Annexure I of the Rules. The applicant has claimed normal value for China PR on the basis of cost of production in India, duly adjusted. In terms of Para 8 in Annexure 1 to the Rules it is presumed that the producers of the subject goods in China PR are operating under nonmarket economy conditions. In view of the above non-market economy presumption and subject to rebuttal of the same by the responding exporters from china PR, normal value of the subject goods in China PR has been estimated in terms of Para 7 of Annexure 1 to the Rules.

Export Price

11. The Petitioners have submitted the IBIS transaction-wise import information to assess the volume and value of the subject import in India. Export price has been determined on the basis of weighted average of the import price. Export price has been adjusted for Ocean Freight, Marine Insurance, Commission, Port Expenses, Inland Freight and Bank Charges to arrive at the net export price.

Dumping Margin

12. The normal value has been compared with the export price at ex-factory level. There is sufficient prima facie evidence that the normal value of the subject goods in the subject country are higher than the ex-factory export price, indicating, that the subject goods are being dumped into the Indian market by the exporters from the subject country. The dumping margins are estimated to be above de minimis.

Period of Investigation (POI)

13. The Period of Investigation (POI) proposed by the applicant is from April 2015 to March 2016 (12 months) and the injury investigation period is for the periods, Apr’ 12-Mar’ 13, Apr’ 13-Mar’ 14, Apr’ 14- Mar’ 15 and the Period of Investigation.

Submission of information

14. The known exporters in the subject country, the Government of the subject country through their embassy in India, the importers and users in India known to be concerned with the product are being addressed separately to submit relevant information in the form and manner prescribed and to make their views known to the Authority at the following address:

The Designated Authority,
Directorate General of Anti-Dumping & Allied Duties,
Ministry of Commerce & Industry, Department of Commerce
4th Floor, Jeevantara Building,
5 Parliament Street, New Delhi-110001

15. Any other interested party may also make its submissions relevant to the investigation in the prescribed form and manner within the time limit set out below.

Time limit

16. Any information relating to the present investigation and any request for hearing should be sent in writing so as to reach the Authority at the address mentioned above not later than forty days (40 Days) from the date of publication of this Notification. If no information is received within the prescribed time limit or the information received is incomplete, the Authority may record its findings on the basis of the facts available on record in accordance with the Anti-Dumping Rules.

17. All the interested parties are hereby advised to intimate their interest (including the nature of interest) in the instant matter and file their questionnaire responses and offer their comments to the domestic industry’s application regarding the need to continue or otherwise the Antidumping measures within 40 days from the date of initiation of this investigation.

Submission of Information on Non-Confidential basis

18. In case confidentiality is claimed on any part of the questionnaire’s response/submissions, the same must be submitted in two separate sets (a) marked as Confidential (with title, index, number of pages, etc.) and (b) other set marked as Non Confidential (with title, index, number of pages, etc.). All the information supplied must be clearly marked as either “confidential” or “non-confidential” at the top of each page.

19. Information supplied without any confidential marking shall be treated as non-confidential and the Authority shall be at liberty to allow the other interested parties to inspect any such non-confidential information. Two (2) copies of the confidential version and five (05) copies of the non-confidential version must be submitted by all the interested parties.

20. For information claimed as confidential; the supplier of the information is required to provide a good cause statement along with the supplied information as to why such information cannot be disclosed and/or why summarization of such information is not possible.

21. The non-confidential version is required to be a replica of the confidential version with the confidential information preferably indexed or blanked out/summarized depending upon the information on which confidentiality is claimed. The non-confidential summary must be in sufficient detail to permit a reasonable understanding of the substance of the information furnished on confidential basis. However, in exceptional circumstances, parties submitting the confidential information may indicate that such information is not susceptible to summarization; a statement of reasons why summarization is not possible must be provided to the satisfaction of the Authority.

22. The Authority may accept or reject the request for confidentiality on examination of the nature of the information submitted. If the Authority is satisfied that the request for confidentiality is not warranted or the supplier of the information is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, it may disregard such information.

23. Any submission made without a meaningful non-confidential version thereof or without a good cause statement on the confidentiality claim may not be taken on record by the Authority. The Authority on being satisfied and accepting the need for confidentiality of the information provided; shall not disclose it to any party without specific authorization of the party providing such information.

Inspection of Public File

24. In terms of rule 6(7) any interested party may inspect the public file containing non-confidential versions of the evidence submitted by other interested parties.

Non-cooperation

25. In case any interested party refuses access to and otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the Authority may declare such interested party as non-cooperative and record its findings on the basis of the facts available to it and make such recommendations to the Central Government as deemed fit.

Sd/-
(A.K. Bhalla)
Additional Secretary & Designated Authority

No.15/3/2016-DGAD
Issued by:
Department of Commerce
Ministry of Commerce & Industry
(Directorate General of Anti-Dumping & Allied Duties)
New Delhi