Initiation of anti-dumping investigation concerning import of Chloroquine phosphate from China PR - 16/1/97-ADD - Anti Dumping Duty

Notification No. 16/1/97-ADD Dated 19-2-1998 Subject : Initiation of anti-dumping investigation concerning import of Chloroquine phosphate from China PR M/s. Tata Pharma Ltd. and IPCA Ltd. have filed a joint petition in accordance with the Customs Tariff (Amendment) Act, 1995 and Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 before the Designated Authority (hereinafter referred to as the Authority) alleging dumping of Chloroquine phosphate from the People s Republic of China (referred to as China PR hereinafter) and requested for anti-dumping investigations and levy of anti-dumping duties. 1. Standing : There are a number of producers of Chloroquine phosphate in India, two of whom have jointly filed the present petition. The petitioners account for a major proportion of the total domestic production in India and, therefore, satisfy the standing to file the present application behalf of the domestic industry. 2. Product Involved : The product involved in the present investigation is Chloroquine phosphate. Chloroquine phosphate is a pharmaceutical product and is used in anti-malarial formulations. Chloroquine phosphate is classified under Custom sub-heading No. 2939.21 of the Customs Tariff Act . The classification is, however, indicative only and in no way binding on scope of the present investigations. 3. Country(ies) involved : The petitioners have alleged dumping by the exporters from China PR. 4. Like Goods : The petitioners have alleged that goods produced by them have characteristics similar to the goods being imported from China PR and the two are being consumed interchangeably. Chloroquine phosphate produced by the domestic industry has, therefore, been treated as like article to the Chloroquine phosphate imported from China PR. 5. Dumping and Dumping Margin : (a) Normal Value. The petitioners have constructed cost of production of Chloroquine phosphate in China PR, based on the import prices of major raw materials and other information available with it. There is sufficient prima facie evidence with regard to normal value of Chloroquine phosphate in China PR. (b) Export Price. The petitioner has claimed the following export prices for the past three years : Year Volume (kgs.) Value(Rs. lacs) Rate Rs. per kg. 1994-95 34623 308.99 892 1995-96 176488 1301.38 732 1996-97 81213 623.98 768 As per DGCIS, the average price for 1996-97 (upto Feb., 1997) is ₹ 772/- per kg. The petitioners have claimed price adjustments in the on account of ocean freight, inland freight in China PR, insurance, and packing expenses. There is sufficient prima facie evidence with regard to export price of Chloroquine phosphate in China PR. There is sufficient prima facie evidence that the normal value of the product under consideration in China PR is significantly higher than the price at which it has been exported to India, indicating, prima facie, that the subject goods are being dumped by the exporters from China PR. 6. Injury : The various economic indicators relating to domestic industry such as production, sales market share, profit/loss etc. also collectively and cumulatively, prima facie, indicate that the domestic indutry has suffered injury. There is sufficient prima facie evidence that the imports of the product under consideration have casued injury to the domestic industry. 7. Initiation of Anti-dumping investigation : The Authority, therefore, initiates anti-dumping investigations into the existence, degree and effect of alleged dumping of the subject goods originating in or exported from the said courtry. 8. Period of investigation : The period of investigation for the purpose of the present investigations is 1st April, 1996 to 30th June, 1997. 9. Submission of information : The exporters in China PR and the importers in India known to be concerned are being addressed separately to submit relevant information in the form and manner prescribed and to make their views known to the Designated Authority, Ministry of Commerce, Anti Dumping Division, Udyog Bhavan, New Delhi-110011. Any other interested party may also make its submissions relevant to the investigation in the prescribed form and manner within the time limit set out below. 10. Time limit : Any information relating to the present investigations should be sent in writing so as to reach the Authority at the address mentioned above not later than forty days from the date of publication of this notification. The known exporters and importers, who are being addressed separately, are, however, required to submit the information within forty days from the date of letter addressed to them separately. 11. Inspection of Public File : In terms of Rule 6(7) , any interested party may inspect the public file containing non-confidential version of the evidence submitted by other interested parties. 12. In case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the Authority may record its findings on the basis of the facts available to it and make such recommendations to the Central Government as deemed fit.