2013 (12) TMI 763 - AT - Customs

Levy of anti dumping duty - Inclusion of higher sizes of TCP, reliability of IBIS data, calculation on a weighted average basis, and injury analysis done by the D.A - Held that - D.A. has conducted a detailed investigation and has considered all aspects of the case based on data and evidence made available to him. He has also considered the submissions made by all the interested parties including the appellants. He has determined a dumping margin of 31.85% in respect of exporters from Chinese PR. He has also concluded that import of the subject goods from the subject countries have increased substantially. The D.A. has examined the relevant economic indicators, as well as the volume and price effects of the dumped imports The D.A. has done a meticulous analysis and has taken an overall view of the relevant economic factors and has finally arrived at his findings on dumping, injury and the causal link between the two. He has also considered that imposition of anti-dumping duty would not restrict imports nor would it affect the availability of the products to the consumers. Accordingly, he has recommended anti-dumping duty of 10% adv. on TCPs upto the size 130 imported from Chinese PR leading to the impugned customs notification - No reason to interfere with the impugned final findings and the impugned customs notification issued pursuant to the same - Decided against assessee.

Issues Involved:
1. Classification of different sizes of Tyre Curing Presses (TCP) as 'like articles'.
2. Determination of dumping margin and injury margin using the weighted average method.
3. Reliability of IBIS data.
4. Injury analysis and causal link between imports and injury to the domestic industry.

Detailed Analysis:

1. Classification of Different Sizes of TCP as 'Like Articles':
The appellants argued that TCPs of different sizes are highly customized and not interchangeable, thus should not be treated as 'like articles'. They cited examples from other anti-dumping investigations to support their claim. However, the Domestic Industry (D.I.) countered that all TCPs, regardless of size, constitute one article based on product parameters, manufacturing process, technology, functions, uses, pricing, distribution, marketing, and tariff classification. The D.A. considered TCPs of all sizes as one product but limited the anti-dumping duty to sizes up to 130 inches, based on the capability and actual production by the domestic industry. The Tribunal found this approach reasonable and fair.

2. Determination of Dumping Margin and Injury Margin Using Weighted Average Method:
The appellants contended that the D.A. should have calculated the dumping margin separately for each size of TCP and excluded sizes with negative margins. They argued that the weighted average method was inappropriate. The D.A. and D.I. defended the use of the weighted average method, stating it is a common practice in anti-dumping investigations and required by the A.D. Rules. The Tribunal upheld the D.A.'s methodology, noting that it ensures a fair comparison across all sizes and prevents practices like 'zeroing', which the WTO has ruled against.

3. Reliability of IBIS Data:
The appellants questioned the reliability of IBIS data, claiming it was erroneous and unreliable. The D.A. and D.I. supported the use of IBIS data, highlighting its routine adoption in various investigations as a third-party independent source. The Tribunal found no fault with the D.A.'s reliance on IBIS data, noting that it provided a comprehensive view of imports, unlike the limited data from appellants' members.

4. Injury Analysis and Causal Link Between Imports and Injury to the Domestic Industry:
The appellants argued that the D.A.'s injury analysis was flawed, as there was no material injury to the D.I. The D.A. and D.I. presented evidence of increased imports, price undercutting, and financial losses suffered by the domestic industry. The D.A. conducted a detailed investigation, considering various economic factors and concluding that the domestic industry faced significant injury due to dumped imports. The Tribunal agreed with the D.A.'s findings, noting the meticulous analysis and overall assessment of injury.

Conclusion:
The Tribunal dismissed the appeal, upholding the D.A.'s final findings and the impugned customs notification. The D.A.'s approach in classifying TCPs, determining dumping and injury margins, relying on IBIS data, and analyzing injury was found to be reasonable, fair, and in accordance with established practices and legal requirements.

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