2000 (11) TMI 459 - AT - Customs

Summary

Issues Involved:
1. Imposition and computation of anti-dumping duty on Pure Terephthalic Acid (PTA) from Japan, Malaysia, Spain, and Taiwan.
2. Determination of non-injurious price and landed value.
3. Transparency in the investigation procedure by the Designated Authority.
4. Validity of the period of investigation and data used for determining imports.
5. Imposition of anti-dumping duty on exports from Spain and other countries.

Issue-wise Detailed Analysis:

1. Imposition and Computation of Anti-Dumping Duty:
M/s. Reliance Industries Ltd. filed an application seeking the imposition of anti-dumping duty on PTA from Japan, Malaysia, Spain, and Taiwan. The Designated Authority recommended anti-dumping duty on PTA from Spain but not from Japan and Malaysia, citing that imports from these countries were above the non-injurious price. M/s. Reliance Industries appealed for enhancement and imposition of duty on all countries mentioned, while M/s. Interquisa, Spain sought quashing of the duty on their exports.

2. Determination of Non-Injurious Price and Landed Value:
M/s. Reliance Industries contended that the non-injurious price was incorrectly determined lower than their cost of production, leading to an erroneous finding of no causal link between injury and imports from Japan and Malaysia. They argued that the landed value was inflated due to incorrect inclusion of certain costs. The Designated Authority explained that deductions were made for raw materials, utilities, sales tax, and income tax, with electricity costs based on actual costs rather than market tariff. The Tribunal upheld the Designated Authority's method but emphasized the need for greater transparency in disclosing cost elements excluded from the non-injurious price.

3. Transparency in Investigation Procedure:
The Tribunal noted that the Disclosure Statement by the Designated Authority lacked sufficient information, causing difficulties for the appellants. It stressed the importance of comprehensive and clear statements to ensure parties understand the basis of cost computations and can make informed submissions. The Tribunal urged the Designated Authority to improve transparency in its investigations.

4. Validity of Period of Investigation and Data Used:
M/s. Interquisa argued that no imports from Spain occurred during the period indicated in the application, and their imports during the investigation period were de-minimus. The Designated Authority justified the investigation period from April to December 1998, as large imports were anticipated. The Tribunal found the Designated Authority's decision appropriate, rejecting the forecast data in favor of actual import data from the Director General of Commercial Intelligence.

5. Imposition of Anti-Dumping Duty on Exports from Spain and Other Countries:
The Tribunal found errors in the computation of landed value due to the inclusion of SAD and handling charges, which inflated costs and affected injury margin findings. It directed the re-computation of landed value excluding these elements and imposed definitive anti-dumping duties in US $ terms. The injury margins were revised, leading to the imposition of duties on specific exporters from Japan and Spain.

Conclusion:
The Tribunal upheld the Designated Authority's determination of non-injurious price but directed corrections in the computation of landed value. It emphasized the need for transparency in the investigation process and imposed revised anti-dumping duties on PTA exports from Japan and Spain, disposing of both appeals accordingly.