9911796707
TMI Blog2006 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of Domestic Industry alleging dumping of Sodium Hydroxide commonly known as Caustic Soda originating in or exported from Chinese Taipei, Indonesia and European Union (excluding France), investigations were initiated into the alleged dumping in terms of Section 9A of Customs Tariff Act, 1975 read with Customs Tariff (Identification Assessment and Collection of Anti-dumping duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as Anti-dumping Rules). After following the prescribed procedure, preliminary findings were notified under Notification No. 14/39/2002-DGAD, dated 8-1-2003. Investigation was carried out for the period from 1st Jan. 2002 to 30-9-2002. The copy of the preliminary findings were forwarded to all interested parties. Public hearing was held on 22nd April, 2003. The written submissions received from interested parties were considered by the Designated Authority. Non-confidential version of the evidence presented by various interested parties were kept open for inspection by interested parties in the public file under Rule 6(7). In terms of Rule 16 of the Anti-dumping Rules, essential facts/basis considered for arrivin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. It was not considered that Chlorine gas serves as an input for several value added product such as Ethylene Di Chloride, Ammonium Chloride, Chloroform and other derivatives. The profitability of these products needs to be considered while fixing the non-injurious price of domestic industry. The global tender floated by M/s. NALCO is being used as proof of injury to entire domestic industry of caustic soda. 3.2. In para 117 of final findings, the Designated Authority has given a finding that the non-injurious price has been evaluated for the various domestic producers by appropriately considering the sale realization from the related products in order to eliminate inefficiency. The authority has normated and benchmarked the best practices on utilization of raw materials, utilities, etc. From these findings, it cannot be made out how the Chlorine and Caustic Soda has been treated by the Designated Authority. In para 105 of the final findings of the Designated Authority, it is mentioned that unit selling price has not declined in proportion to the cost of production, which led to the betterment in financial loss which still did not help much in improving the financial health of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l price was constructed by the Designated Authority from the figure published in Chlor-Alkali report. The domestic industry has obtained the figures for EU and Taiwan from Chlor-Alkali report whereas the figure for Indonesia was taken from other secondary source which was not disclosed. 4.2. The appellant (NALCO) has pleaded that NALCO tender was a triggering point for investigation. The bid except from Japan were higher than domestic bids. M/s. Nissho Iwai had offered a CF price of US$ 151 (Rs. 7,383.90) and offered a quantity of 30,000 DMT from Taiwan. Evaluation of this price inclusive of all taxes and duties net of CENVAT at sight works out to Rs. 10, 723.30 per DMT. The bid of indigenous parties i.e. M/s. Jayshree Chemicals and M/s. Tamilnadu Petroproducts Ltd. offered ex-work price of Rs. 9,200/- and Rs. 9,000/- per DMT which on evaluation works out to Rs. 11,595.86 and Rs. 12,179.07 per DMT. Largely imports under the tender during POI were between US$ 181 and US$ 151 per DMT whereas domestic price was Rs. 12,179/- on CF basis and hence there was no dumping. The export price of the bidders was more than domestic price. This position is for the period July to August, 2002 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulting in non-recovery of costs of production thereby, suffering financial losses. The domestic industry has suffered material injury from the dumped import as given by the DA in para 86 of his final finding. Therefore conclusion of the DA that there were significant injury to the domestic industry due to dumping has been correctly arrived at. Since the exporters have not cooperated and had not given the figures for domestic price, DA has correctly calculated these on the basis of prices published in the Chlor Alkali Magazine. Arguments on behalf of the designated authority : 6. On behalf of the designated authority, it was argued that in India chlorine is treated as by-product for cost allocation during manufacture of caustic soda. Chlorine is just like bagasse and molasses in sugar industry. They have taken the sale price of the chlorine for arriving at the cost of production of caustic soda on the basis of Cost Accounting Records (Caustic Soda) Rules, 1967 as per clause (b) of item VII of cost statement under the said Rules. The cost distribution between caustic soda and chlorine was done on reasonable and equitable basis. The normal price and injury margin were correctly de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling and general costs, and for profits, as determined in accordance with the rules made under sub-section (6) : Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transshipped through the country of export of such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin. 7.2 For determining the normal value, the authority had sent questionnaires to the exporters. However, adequate and complete response was not filed by the exporters from European Union (excluding France) and none of the exporters from Indonesia and Chinese Taipei responded to the questionnaires. Therefore the authority constructed the normal value of producers/exporters on the basis of data provided by the petitioners on the basis of the domestic sales price in the domestic market of European Union (excluding France) through secondary sources from leading I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrectly determined and the arguments raised by NALCO are not supported by the proper evidence. 7.5 It was argued by the appellants that the DA has taken Chlorine as by-product. In determining the cost of production of caustic soda the sale price of the Chlorine has been deducted. It was explained that this method adopted by the DA is contrary to the Cost Accounting (Records) of the Caustic Soda Rules, 1967. According to para 12 of Annexure 3 of the said Rules, it should be treated as co-product. Reliance was placed on this Tribunal s decision on Final Order Nos. 26-28/05-AD, dated 25-12-2005, in case of M/s. Alkali Manufacturers Association of India others v. DA and others. We find that in the case relied upon by the appellants, equal treatment was not given to the domestic producers and the exporters M/s. Hanwah Chemical Corporation. In case of M/s. Hanwah Chemical Corporation cost of production of caustic soda was being determined by them by taking the sale price of Chlorine into account. It was not accepted by the DA. He allocated cost between caustic soda and Chlorine at the point of separation of Chlorine and caustic soda on the basis of volume of production. Therefore in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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