(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 28th June, 2021
Case No. (SSR – 09/2021)
Subject: Initiation of Sunset Review Investigation concerning imports of “Jute Products” originating in or exported from Bangladesh and Nepal.
F. No. 7/9/2021-DGTR.—
1. Indian Jute Mills Association [IJMA] (hereinafter referred to as the ‗applicant‘ or ‗applicant association‘) has filed an application before the Designated Authority (hereinafter referred to as the ―Authority‖) on behalf of the domestic industry, in accordance with the Customs Tariff Act, 1975 as amended from time to time (hereinafter referred to as the ―Act‖) and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for determination of injury) Rules, 1995 as amended from time to time (hereinafter referred to as the ―Rules‖) for Sunset Review Investigation concerning imports of ―Jute Products‖ (hereinafter referred to as ―subject goods‖ or specifically as ―product under consideration‖ or ―PUC‖), originating in or exported from Bangladesh and Nepal (hereinafter referred to as the ―subject countries‖).
2. The Applicant has alleged likelihood of continuation or recurrence of dumping of subject goods, originating in or exported from the subject countries and consequent injury to the Domestic Industry and have requested for sunset review and continuation of the Anti-dumping duty.
A. Background
3. The original investigation concerning imports of the subject goods from Bangladesh and Nepal was initiated by the Authority vide Notification No. 14/19/2015-DGAD, dated 21.10.2015. Definitive Anti- dumping duties were recommended vide Notification No. 14/19/2015-DGAD, dated 20.10.2016 and was imposed vide Customs Notification No. 01/2017-Customs (ADD), dated 05.01.2017, and amended further by Customs Notification No. 11/2017-Customs (ADD), dated 03.04.2017. Subsequently, an anti-circumvention investigation was initiated vide Notification No. 7/3/2018-DGAD, dated 20.03.2018 concerning imports of ‗Jute Sacking Cloth‘, (a penultimate stage of ―Jute Sacking Bag‖) from Bangladesh. The authority vide Notification No. 7/3/2018-DGAD, dated 19.03.2019 recommended extension of the existing anti-dumping duty imposed on Sacking Bags vide the above notifications, and was imposed vide Customs Notification No.24/2019-Customs (ADD), dated 18.06.2019.
B. Produce Under Consideration
4. The product under consideration in the original investigation was considered as: “26. The product under consideration in the present investigation is “Jute Products” comprising of Jute Yarn/twine (multiple folded/cabled and single), Hessian Fabrics and Jute Sacking bags as mentioned in the initiation notification No. 14/19/2015-DGAD dated 21.05.2015.”
5. The Authority subsequently in an anti-circumvention investigation included ―Jute sacking cloth‖ in the product scope as mentioned in Initiation Notification No. 7/3/2018-DGAD dated 20.03.2018 –
6. Accordingly, keeping in view the notification dated 21.05.2015 and 20.03.2018 the product scope in the present sunset review (SSR) investigation is considered as ―Jute Yarn/twine (multiple folded/cabled and single), Hessian Fabrics, Jute Sacking cloth and Jute Sacking bags”.
7. As, the present investigation is a Sunset Review investigation, the product under consideration remains the same as defined in the original investigation and as modified in the anti-circumvention investigation.
C. Like article
8. The applicant has claimed that the subject goods produced by the domestic industry are identical to the goods imported from subject countries. The applicant has further claimed that there is no difference in the technology and production process employed by the applicant companies and foreign producers. The goods supplied by the domestic industry are comparable to the goods imported from subject countries in terms of characteristics such as physical & technical characteristics, manufacturing process & technology, functions & uses, product specifications, pricing, distribution & marketing, and tariff classification of the goods. The two are technically and commercially substitutable and are used by consumers interchangeably. The subject goods produced by the applicant companies are being treated as ‗Like Article‘ to the subject goods being imported from the subject countries.
D. Domestic Industry and Standing
9. The application has been filed by Indian Jute Mills Association (IJMA). M/s Bowreah Jute Mills Pvt. Ltd., M/s Caledonian Jute & Industries Ltd., M/s Cheviot Company Ltd., M/s Gloster Ltd., M/s Hoogly Infrastructure Pvt. Ltd., and M/s Ludlow Jute & Specialties Ltd. (referred to as ―applicant companies‖ herein) have provided requisite information for the purpose of the present investigations.
10. The application has been supported by Alliance Mills (Lessees) Ltd., Bally Jute Company Ltd., Budge Budge Co. Ltd., Mahadeo Jute & Industries Ltd., RDB Textiles Ltd., Shaktigarh Textile and Industries Ltd., Jagatdal Jute & Industries Ltd., Kamarhatty Co. Ltd., The Naihati Jute Mills Co. Ltd., Reliance Jute Mills (International) Ltd., Aditya Translink Pvt. Ltd., Ambica Jute Mills, Anglo India Jute & Textile Industries Pvt. Ltd., Auckland International Ltd., The Angus Company Ltd., Barnagore Jute Factory Plc., Birla Corporation Ltd., Dalhousie Jute Company, Delta Limited, The Empire Jute Company Ltd., The Ganges Manufacturing Co., Ltd., The Hooghly Mills Company Ltd., Vijai Shree Pvt. Ltd., Calcutta Jute Manufacturing Co. Ltd., Shree Gouri Shankar Jute Mills Ltd., Kanknarrah Company Ltd., Northbrook Jute Company Ltd., RDB Textiles Ltd., Shaktigarh Textile and Industries Ltd., Sunbeam Vanijya Pvt. Ltd., Agarpara Jute Mills Ltd., Tepcon International (India) Ltd., and Trend Vyapaar Ltd.
11. The applicants have neither imported the subject goods from the subject countries nor are related to any exporter or producer of subject goods in the subject countries or any importer of the Product under Consideration in India. While M/s Cheviot Company Ltd. has imported Jute yarn from Bangladesh. However, the same is for their SEZ unit.
12. In view of the above and after due examination, the Authority notes that the Applicant companies constitutes eligible domestic industry in terms of Rule 2 (b), and the application satisfies the criteria of standing.
E. Likelihood of Continuation or recurrence of Dumping
i. Normal Value for Bangladesh
13. The Applicant has claimed normal value in Bangladesh on the basis of price offers for the product, separately for different types of the product. The applicant has identified the product type involved, the price offered, terms & conditions of sale, and the nature of the price offers made. The claim is prima facie found appropriate for the purpose of initiation.
ii. Normal Value for Nepal
14. The Applicant has claimed that efforts were made to get evidence of price of the product concerned in the domestic market of Nepal or an evidence of price from Nepal to third country which is not available in public domain. In the absence of any publicly available information, the applicant has claimed normal value in Nepal on the basis of cost of production in Nepal, considering facts available. The claim is found prima facie appropriate for the present purpose.
iii. Export Price
15. Export price has been computed as per the information available from the DGCI&S transaction wise data. Since these are CIF export price, adjustments have been made for freight, insurance, port expenses, bank charges, inland freight expenses, and commission, to arrive at ex-factory export price.
iv. Dumping Margin
16. Considering the normal value and export price determined as above, dumping margin has been determined. Which in case of Bangladesh is above de minimis but below de minimis in case of Nepal. The comparisons done presently on an average basis are not realistic due to various product code numbers involved in the product. India being a significant market for both Bangladesh and Nepal, the likelihood of dumping would also be undertaken on product code number basis during the investigation for the subject countries.
F. Likelihood of continuation or recurrence of Injury
17. The Applicant has claimed that while its performance has not further deteriorated and ADD in force has contained its injury, it remains vulnerable to an intensified injury in the event of cessation of antidumping duty. The claim of the applicant in case of Bangladesh is based on significant volume of imports despite imposition of duties, existence of a large number of producers of the product in Bangladesh, exports to India at present by a limited number of exporters (because of existing ADD), likelihood of exports by a number of other exporters who are not exporting at present due to existing duties, exports to India by minor alteration to the product after imposition of ADD, surplus capacities with producers in Bangladesh, abundance of raw jute in Bangladesh, potential increase in production in future despite stable demand, positive price undercutting in the event of cessation of ADD, efforts of Bangladesh Government to enhance exports, vulnerability of the Domestic Industry, price attractiveness of the Indian market, past history of persistent exports through use of export benefits rate modification system. In case of Nepal, the claim of the applicant is based on the fact that India is an extremely significant market, making Nepalese producers highly dependent on it. The imports from Nepal also depict, positive price undercutting. There is thus prima facie evidence of likelihood of dumping from subject countries and consequent injury to the domestic industry in the event of cessation of antidumping duty. ……………………. Click here.