2000 (10) TMI 208 - AT - Customs

Anti-dumping duty on High Impact Polystyrene - and phrases - Like article - Anti-dumping duty

Issues:
1. Challenge to imposition of anti-dumping duty on High Impact Polystyrene (HIPS) exported from Hong Kong.
2. Classification of the appellant as an exporter or manufacturer.
3. Determination of "like article" under the Anti-Dumping Rules.
4. Fixation of normal value by the Designated Authority.
5. Consideration of all relevant aspects in the imposition of anti-dumping duty.
6. Currency for levying anti-dumping duty.

Issue 1: Challenge to imposition of anti-dumping duty on HIPS exported from Hong Kong:
The Government of India imposed anti-dumping duty on HIPS imported from Hong Kong, including the Environmental Stress Crack Resistant grade (ESCR grade). The appellant, Dow Chemical Pacific Ltd., challenged this notification, arguing that the ESCR grade HIPS exported by them is not a like article manufactured in India and that no injury was caused to Indian manufacturers. They also contested the method used by the Designated Authority to determine the normal price and the consideration of all relevant matters in imposing the duty.

Issue 2: Classification of the appellant as an exporter or manufacturer:
The Designated Authority initially treated Dow Chemical Pacific Ltd. as a trader/exporter and not a producer of Polystyrene. However, the appellant claimed to manufacture HIPS in Hong Kong and export it to various countries, including India. Contradictory stands were taken by the appellant regarding the disclosure of details related to the actual cost of manufacture, leading to doubts about their cooperation with the investigation.

Issue 3: Determination of "like article" under the Anti-Dumping Rules:
The appellant argued that the ESCR grade HIPS exported by them from Hong Kong was not a like article in relation to the Polystyrene manufactured in India. However, reports from domestic manufacturers indicated that the characteristics of the ESCR grade HIPS exported by the appellant closely resembled or were identical to the articles under investigation in India, as required by the Anti-Dumping Rules.

Issue 4: Fixation of normal value by the Designated Authority:
The appellant contested the fixation of normal value by the Designated Authority, particularly regarding the consideration of comparable prices and the exclusion of export prices to Pakistan. The tribunal upheld the Authority's decision, emphasizing that normal value determination should not solely rely on prices to a third country without evidence of actual production costs.

Issue 5: Consideration of all relevant aspects in the imposition of anti-dumping duty:
The Designated Authority's investigation over eighteen months revealed an increase in exports from Hong Kong to India after the imposition of anti-dumping duty on goods from other countries. The tribunal supported the Authority's findings of dumping and injury to the Indian industry, concluding that the Central Government correctly acted on these conclusions.

Issue 6: Currency for levying anti-dumping duty:
The tribunal directed the Government of India to issue a corrigendum notification fixing the anti-dumping duty in US dollars to prevent nullification due to fluctuations in exchange rates, ensuring the effectiveness of the duty.

In conclusion, the tribunal dismissed the appeal, subject to the modification of the anti-dumping duty notification to be in US dollars, emphasizing the importance of considering all relevant factors in anti-dumping investigations and duties.

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