2011 (8) TMI 745 - AT - Customs

Anti Dumping Duty on import of carbon black - determination of injury - dumping margin - appeal by an association of exporters - held that - concerned exporters on whose products the anti-dumping duty has been imposed are not in appeal before us. The appeal has been filed by an association representing the importer tyre manufacturers in India. To a query from the Bench, the learned Advocate Shri S. Seetharaman clarifies that this is not an appeal by proxy on behalf of the exporters. In the absence of challenge by the exporters to various determinations made by the D.A., it can be safely concluded that the exporters are not aggrieved by the final findings. The challenge by the appellants that the injury analysis and finding on the causal link is defective is far from convincing. The D.A. has taken all pains to examine all relevant factors and has come to a finding on the strength of data made available to him, which he has separately analyzed to come to a finding on the existence of dumping, the injury to the D.I. and causality between the two. - imposition of anti dumping duty upheld.

Summary

Issues Involved:
1. Sufficiency of evidence supporting the petition by the Domestic Industry (D.I.).
2. Defective computation of normal value by the Designated Authority (D.A.).
3. Incorrect determination of material injury and threat to material injury.
4. Consideration of post-investigation period data for determining injury and threat.
5. No adverse impact on the D.I. regarding specified economic factors.
6. Lack of causal link between dumped imports and injury to the D.I.
7. Confidentiality of information disclosure.

Detailed Analysis:

1. Sufficiency of Evidence Supporting the Petition by the Domestic Industry (D.I.):
The appellants argued that the petition by the D.I. lacked sufficient evidence. However, the Tribunal noted that initiation of an anti-dumping investigation requires only a prima facie satisfaction of the authority. The evidence required for initiation need not be as comprehensive as that required for the final imposition of anti-dumping duty. The D.I. had submitted a detailed petition containing evidence regarding dumping, injury, and causal link, which was deemed sufficient for the initiation of the investigation.

2. Defective Computation of Normal Value by the Designated Authority (D.A.):
The appellants challenged the D.A.'s computation of the normal value. However, it was pointed out that importers are not entitled to challenge the normal value determination, a stance supported by the Tribunal's decision in AIIGMA v. Designated Authority. The evidence regarding normal value furnished on the basis of constructed cost was considered appropriate since the D.I. could not be expected to have data regarding the cost of production of foreign exporters.

3. Incorrect Determination of Material Injury and Threat to Material Injury:
The appellants contended that the injury analysis was flawed due to non-disclosure of information regarding product types included and excluded. The D.A. justified the determination of injury and threat by stating that there was a gradual deterioration of the condition of the domestic industry during the POI, warranting a quarterly analysis of the indices. The D.A. examined indices for the quarter after the POI to ascertain injury, which is permissible under the law.

4. Consideration of Post-Investigation Period Data for Determining Injury and Threat:
The appellants argued against the consideration of data for the first quarter after the POI and the exclusion of data for the second quarter. The Tribunal found that the rules do not prohibit the consideration of injury data beyond the POI. The D.A. justified looking at data beyond the POI due to the gradual deterioration of the D.I.'s condition during the POI, warranting a quarterly analysis. The data for the second quarter was post-initiation and unquantified, thus not reliable for the investigation.

5. No Adverse Impact on the D.I. Regarding Specified Economic Factors:
The D.A. considered various economic parameters and found that the imports increased significantly both in absolute terms and relative to production in India, causing price undercutting and preventing the D.I. from increasing its prices to cover the increased cost of production. The profit and return on investment also declined significantly during the POI. The Tribunal concluded that the D.A. adequately considered these factors in its findings.

6. Lack of Causal Link Between Dumped Imports and Injury to the D.I.:
The appellants claimed there was no causal link between dumped imports and injury to the D.I. The D.A. examined other known factors and concluded that the injury to the D.I. was caused by the dumped imports. The Tribunal found that the D.A. had taken all necessary steps to examine relevant factors and data to establish the causal link.

7. Confidentiality of Information Disclosure:
The appellants raised concerns about the disclosure of confidential information. The D.A. and the Tribunal clarified that no confidential figures were disclosed, and the annual reports of the companies could not be relied upon entirely for the anti-dumping investigation. The D.A. fulfilled the obligation regarding public hearings and disclosure statements before making final findings, ensuring transparency.

Conclusion:
The Tribunal concluded that the D.A. conducted a detailed investigation and due examination regarding the existence of dumping, injury, and causal link. The appeal by the association representing the importer tyre manufacturers in India lacked substance, and the final findings and the Customs Notification imposing anti-dumping duty were upheld. The appeal was dismissed, and the stay petition and miscellaneous application for early hearing were disposed of.