2002 (11) TMI 390 - AT - Customs

Summary

Issues:
1. Imposition of anti-dumping duty on imported Strontium Carbonate.
2. Contention regarding the quality difference between granular and powder forms of Strontium Carbonate.
3. Interchangeability of granular and powder forms of Strontium Carbonate.
4. Domestic industry's inability to supply Strontium Carbonate in granular form.
5. Determination of material injury to domestic industry.
6. Justification for the imposition of anti-dumping duty.

Analysis:
1. The judgment addresses the imposition of anti-dumping duty on imported Strontium Carbonate originating from China P.R. The duty was based on the Designated Authority's finding that the imports were causing material injury to the domestic industry.

2. The appellant, a manufacturer of glass TV shells, contested the duty, arguing that the quality of their final product is affected when using powder form Strontium Carbonate instead of the required granular form. They highlighted the technical issues that arise with using powder form, impacting the quality of the glass TV shells.

3. The Designated Authority maintained that granular and powder forms of Strontium Carbonate are interchangeable and considered them as like articles. However, the appellant emphasized the necessity of granular form for their manufacturing process to maintain product quality.

4. It was revealed that the domestic industry, represented by TCM Ltd., was unable to produce Strontium Carbonate in granular form, which the appellant required in large quantities. TCM Ltd. acknowledged their incapacity to supply granular form and stated that revoking the duty on granular form would not adversely affect them.

5. The judgment analyzed the provision for determining material injury under Rule 11 of the Customs Tariff Rules. It referenced a prior case to establish that if the imported article does not cause injury to the domestic industry, imposing anti-dumping duty is unwarranted. The Tribunal concluded that the imported Strontium Carbonate in granular form did not cause material injury to the domestic industry.

6. Ultimately, the Tribunal found that the imposition of anti-dumping duty on imported Strontium Carbonate in granular form was unjustified due to the lack of causal link between the imports and any injury suffered by the domestic industry. As a result, the appeal was allowed, and imports of Strontium Carbonate in granular form were exempted from the anti-dumping duty.

This detailed analysis showcases the complexities surrounding the imposition of anti-dumping duty and the importance of considering the specific requirements and quality concerns of industries in such cases.