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TMI Blog2017 (11) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... aw jute. There is no substantial transformation in the formation of jute yarn/twine to fabric or sacks. In our considered opinion the definition of “like article” under Rule 2 (d) of AD Rules, 1995 rightly covers the determination as done by the DA. The products under consideration need not be identical or homogenous with each other - there is no infirmity in defining the scope of product under consideration in the present investigation. It is not tenable to have a separate investigation for jute yarn, fabric and bag. Such type of action, apart from being impractical, will result in certain anomalous results as these products are closely interlinked in trade and usage. As such, to consider them together as jute products for the purpose of Anti-Dumping investigation is proper and justified. In any case, we note that the conclusion arrived at by the DA in the final finding specified different description of goods like yarn, bag, fabric and recommended different duty rates for imposition with justified reasons. Accordingly, we find no merit in the submissions of the appellants against the process adopted by the DA. Regarding the submission of the appellants that the DI is importing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts of jute products namely jute yarn/ twine (multiple folded/cabled and single), Hessian fabric and Jute sacking bags from Bangladesh and Nepal. Based on an application fled by Indian Jute Mills Association (IJMA), the DA initiated investigation in terms of Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. On completion of investigation, the DA recommended imposition of Anti-Dumping Duty of different quantum in respect of various jute products originating in or exported from Bangladesh or Nepal. Based on the recommendations of the DA, the Department of Revenue issued the above-mentioned customs notification imposing Anti-Dumping duty on these jute products. 2. Out of these 7 appeals, six appeals are challenging the findings of the DA recommending imposition of AD duty on jute products. Five of the appellants are exporters in Bangladesh. The sixth one is the association of Indian importers. The Domestic Industry (DI) also filed an appeal contesting certain aspects of the finding by the DA. 3. The learned Counsel for the appellants who are opposing the imposition of AD duty mainly fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to initiate investigation to be forwarded to known exporters of the article alleged to have been dumped. At that time, the DA shall also provide copy of the application made by the affected parties (DI) under Rule 5 (1). Post initiation all particulars were made known to all the aggrieved persons. On this ground there could be no grievance in these appeals. 7. Regarding satisfaction of the scope of DI, it is submitted that it is necessary for the DI to satisfy their status with reference to product and not under multiple product type. Reference was made to the provisions of Rule 2 (d) which defines like articles . All the three categories of jute products are rightly covered under the said scope and there is no infirmity in the final finding on this account. It is the discretion of the DA while determining the scope of DI, to include or exclude a particular entity when there were some imports by such entity. 8. On the appeal filed by the DI, the learned Counsel submitted that there is a delay of 42 days in filing this appeal. It is submitted that the appellant being an Association of Industry had taken some time to convene committee meeting and to take legal opinion on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the hearing. In the said note, he raised multiple issues contesting the final findings of the DA. It is clear that during the course of oral submissions before the Bench the learned Counsel only raised the issue of faulty initiation of the investigation by the DA and improper defining of the scope of DI during investigation. However, in the written submission various other points were also raised. 14. On the main issue which was only argued during oral submission by the learned Counsel, regarding the faulty initiation of Anti-Dumping investigation, we have considered the factual background, carefully. On receipt of a written application from IJMA for initiation of Anti-Dumping investigation for imposing anti-dumping duty on import of jute products originating in or exported from Bangladesh and Nepal, the DA examined the application. On the basis of sufficient prima facie evidence of dumping of the subject goods, the DA initiated investigation in terms of Rule 5 of AD Rules. A public notice dated 21/10/2015 was published in the Gazette of India, Extra ordinary, initiating Anti-Dumping investigation. 15. Regarding the product under consideration following are the findings of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly substitutable and hence, should be treated as like article under the AD Rules. Therefore, for the purpose of the present investigation, the subject goods produced by the petitioner companies in India are treated as like article to the subject goods being imported from the subject countries. 33. For the purpose of evaluating dumping margin, comparison of constructed normal value with ex-factory export price has been made amongst similar product types of Product under consideration. The same approach has been adopted for producers/exporters from Nepal as the basis on information made available in the questionnaire responses and on site data verification . 16. Against the above finding, the exporters and importers in their appeals, stated that the DA failed to identify the articles liable for AD duty in terms of Rule 4 (b). The term jute products comprises of more than one article and the DA has fallen in error in identifying three different products and clubbing them under the category of jute products. We, on careful examination of the facts of the case, note that the only source of these products is raw jute. There is no substantial transformation in the format ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said case, the standing of the DI has to be considered for the product as a whole and not articles or each type of product individually. We also refer to para 6 (i) of Annexure I of AD Rules, 1995. It is stipulated while arriving at margin of dumping the DA shall make a fair comparison between export price and the normal value. The comparison shall be made at the same level of trade. Due allowance has to be given for differences in physical characteristics or any other differences which will affect the price comparability. 19. We have examined the final findings on the above issue. The DA specifically dealt with the particular parameters, product type-wise and recommended AD duty accordingly. The same is clear from the findings recorded at paras 72 and 93 to 96 of the final finding. 20. Regarding the submission of the appellants that the DI is importing jute products we note that the DA examined the scope of DI and acted within his discretion in terms of Rule 2 (b) of the AD Rules. Even if some of the entities in DI were importing or related to importers of jute products, the DA is not prevented in considering those entities in DI while arriving at the overall scope of DI. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D Rules which states that the AD duty for non sample producers cannot exceed the weighted average margin of dumping established with reference to sample exporters. Proviso to Rule 18 (2) provides for disregarding any zero margin which are less than 2% of export price. We note that the DA has correctly examined this aspect and recorded his finding in para 72 (12). The weighed average of export price of Hessian fabric to India has been adopted for the purpose of evaluating dumping margin and injury margin for this product type, for the residual category producers/exporters. 23. Another point raised in the written note is whether adjustment for cash subsidiary granted by the Government of Bangladesh could be denied while arriving at ex-factory export price. We note that this aspect was specifically examined by the DA who recorded as below :- As regards claim on adjustment on export subsidy by the producers/exporters of Bangladesh, the Authority holds that this adjustment is not specifically provided under Article 2.4 of WTO provisions and that the Authority while reporting ex-factory export price in the disclosure statement had categorically stated that all adjustments as admi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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