Anti-dumping investigation concerning imports of Electrogalvanized Steel from Korea RP, Japan and Singapore

Anti-dumping investigation concerning imports of Electrogalvanized Steel from Korea RP, Japan and Singapore

MINISTRY OF COMMERCE AND INDUSTRY

(Department of Commerce)

(DIRECTORATE GENERAL OF TRADE REMEDIES)

INITIATION NOTIFICATION

New Delhi, the 28th June, 2021

(Case No. AD (OI)-07/2021)

Subject : Initiation of Anti-dumping investigation concerning imports of Electrogalvanized Steel from Korea RP, Japan and Singapore.

F. No. 6/7/2021-DGTR.—1. M/s. American Precoat Speciality Private Limited (hereinafter referred to as „the petitioner‟ or „the applicant‟) has filed an application before the Designated Authority (hereinafter also referred to as the Authority) in accordance with the Customs Tariff Act, 1975 as amended from time to time (hereinafter also referred to as the „Act‟) and Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped articles and Determination of injury) Rules, 1995 as amended from time to time (hereinafter referred to as the „Rules‟) for initiation of anti-dumping investigation concerning imports of „Electrogalvanized Steel‟ (hereinafter also referred to as the „subject goods‟ or „product under consideration‟) originating in or exported from Korea RP, Japan and Singapore (hereinafter also referred to as the „subject countries‟).

2. The Applicant has alleged that material retardation is being caused to the establishment of the domestic industry due to dumped imports of subject goods from the subject countries, and has requested for imposition of anti-dumping duty on the import of the subject goods from the subject countries.

imports of Electrogalvanized Steel

Product under consideration

3. The product under consideration („PUC‟) is „Flat rolled products of hot rolled or cold rolled steel continuously electrolytically plated or coated with zinc, with or without alloying elements‟. The product under consideration is commonly known as Electrogalvanized steel.

4. The product under consideration may be either of alloy or non-alloy steel, whether or not of prime or non-prime quality. The product under consideration may be in coils or not in coils form. The product under consideration includes all types of Electrogalvanized steel whether or not coated, passivated, pre-treated, pre-painted, colour coated, thin organic coated, chromated, phosphated, printed, whether or not corrugated or profiled, and whether or not having anti-fingerprint treatment.

5. The following are excluded from the scope of product under consideration:

  • i. Flat rolled steel products that are plated or coated with alloy of aluminium and zinc.
  • ii. Flat rolled steel products that are plated or coated with alloy of zinc and nickel with nickel being aimed at a minimum 11%.
  • iii. Hot-dip galvanized flat rolled steel products.
  • iv. Tin-mill flat rolled steel products.

6. The intended end use of the product under consideration is for protection from corrosion and is majorly used in the manufacturing of electronic appliances, auto applications, consumer electronics, furniture, HVAC, roofing and siding, ceiling grid, construction, office equipment etc.

7. The product under consideration is classified under HS Codes 7210, 7212, 7225 and 7226 of Schedule I of the Customs Tariff Act, 1975. However, imports of the product under consideration have also been made under HS Codes 7209 & 7211 of Schedule I of the Customs Tariff Act, 1975.

Like Article

8. The applicant has claimed that there are no differences in quality, output and performance of the subject goods imported into India from the subject countries and goods manufactured by the applicant. The subject goods produced by the applicant and those imported from the subject countries are comparable in all relevant parameters such as physical characteristics, manufacturing process, technology, functions, uses, etc. The domestically manufactured product and the imported product are being used interchangeably by Indian consumers.

9. The applicant has claimed that there are no known major differences in the production process employed by the applicant and the exporters from the subject countries. Therefore, for the purposes of the present investigation, the Authority treats the subject goods produced by the applicant in India as “like article” to the product under consideration being imported from the subject countries.

Domestic Industry and Standing

10. The Application has been filed by M/s American Precoat Speciality Private Limited as the domestic industry.

11. The applicant company has claimed that they are the sole producer of subject goods in India and a new entrant in the market having started commercial production of the subject goods in July 2019. Thus, as per the evidence available on record, the production of the applicant company constitutes 100% of Indian domestic production. The Authority, therefore, determines that the applicant company constitutes eligible domestic industry within the meaning of Rule 2 (b) of Anti-dumping Rules and the application satisfies the criteria of standing in terms of Rule 5 (3) of the Anti-dumping Rules.

Countries involved

12. The present investigation is in respect of dumping of the product under consideration from Korea RP, Japan and Singapore.

Basis of alleged dumping

a) Normal Value

13. The applicant has submitted that they do not have information regarding the cost of production and domestic selling price for subject goods in Korea RP, Japan & Singapore. The applicant has claimed that product under consideration is classified under multiple HS codes and therefore the applicant does not have accurate information regarding the export price of subject goods from  subject countries to an appropriate third country for determination of normal value. Therefore, the normal value for the subject countries has been estimated by considering prices of raw materials and conversion cost with reasonable profit on the basis of best available information provided by the applicant.

b) Export Price

14. The applicant has arrived at the export price at ex-factory level from the CIF import price obtained from DGCI&S import statistics after making certain adjustments. Adjustments have been claimed on account of ocean freight, insurance, inland freight, handling charges, commission/trader profit and bank charges to arrive at export price at ex-factory level.

Dumping Margin

15. The normal value and ex-factory export price have been compared which shows significant dumping from each of the subject countries. There is sufficient prima facie evidence that normal values of the subject goods in the subject countries are significantly higher than the ex-factory export price, indicating, prima facie, that the subject goods are being dumped into the Indian market by the exporters from the subject countries.

16. There is sufficient evidence of significant dumping margins to justify initiation of antidumping investigation.

Evidence of Injury and Causal Link

17. Information furnished by the applicant has been considered for assessment of injury to the domestic industry. The applicant has claimed that dumping of the product under consideration is materially retarding the establishment of the domestic industry. The production, sales, capacity utilization and market share of the domestic industry is quite low considering the demand for the product under consideration in the country and considering that the domestic industry commenced commercial production in July 2019. The applicant has claimed that their actual performance during the POI falls short of the projections expected in project report. Further, the prevalence of price undercutting during the entire injury period and POI especially when import prices of PUC are even lower than the raw material prices, prima facie establishes the causality of alleged dumped imports with applicant‟s subdued performance.

18. From the foregoing, the Authority prima facie finds sufficient evidence of dumping of the subject goods originating in or exported from the subject countries, injury to the domestic industry and causal link between the alleged dumping and injury sufficient to justify initiation of an anti-dumping investigation in terms of Rule 5 of the Anti-dumping Rules, to determine the existence, degree and effect of alleged dumping and to recommend the amount of antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry. ....................... Click here read more. 

Source: https://egazette.nic.in/WriteReadData/2021/227947.pdf

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