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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-01042024-253484
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 90]
NEW DELHI, SATURDAY, MARCH 30, 2024/CHAITRA 10, 1946
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
INITIATION NOTIFICATION
New Delhi, the 29th March, 2024
(Case No. AD(OI)- 06/2024)
Subject: Initiation of an anti-dumping investigation concerning the imports of ‘Azo Pigment' from China PR.
F. No. 6/06/2024-DGTR.— 1. Sudarshan Chemical Limited (hereinafter referred to as the "applicant") has
filed an application before the Designated Authority (hereinafter referred to as the "Authority") in accordance with the
Customs Tariff Act, 1975 as amended from time to time (hereinafter referred 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 initiation of an anti-
dumping investigation concerning imports of "Azo Pigment" (hereafter referred to as the 'subject goods' or the
'product under consideration'), originating in or exported from China PR (hereafter referred to as the 'subject
country').
2. The applicant has alleged that material injury is being caused to the domestic industry due to the dumped
imports from the subject country and has requested for imposition of anti-dumping duty on the imports of the
subject goods, originating in or exported from the subject country.
A. Product under consideration (PUC)
3. The product under consideration in the present investigation is 'Azo Pigment'. The product under
consideration belongs to a class of synthetic organic pigments, which is widely used in various industries,
including paints, inks, plastics, textiles, and cosmetics.
4. The product under consideration is traded in three different colours such as Yellow Pigment, Red Pigment
and Orange Pigment. Every colour has different grades, and each grade has different chemical concentrations
and properties and therefore, has different end use application. The product under consideration is used for
providing colour effects to various applications and is widely used in various industries.
5. The product under consideration has a dedicated customs classification under Chapter 32 under HS code
32041711, 32041720 & 32041731. However, the product under consideration is also being imported under
other sub-heading 32041719, 32041739, 32041740, 32041759, 32041769 and 32041790. The customs
classification is only indicative and in no way binding on the scope of the subject investigation.
B. Product control number (PCN)
6. The applicant has proposed the below Product Control Number (PCNs) for making a fair comparison of the
imported product with like article produced by the applicant.
+---+---------------+---------------------------------------------+-------+
| SN| PCN Parameters| Proposed PCN | PCN Code|
+===+===============+=============================================+=======+
| 1 | COLOR | d. Orange | O/R/Y |
| | | e. Red | |
| | | f. Yellow | |
+---+---------------+---------------------------------------------+-------+
| 2 | COLOR INDEX | d. PO 13, PO 34, PO5, PO 36 etc. | XX |
| | | e. PR 57:1, PR 53:1, PR 48:1, PR 48:2, etc. | |
| | | f. PY 13, PY 174, PY 191, PY 74 etc. | |
+---+---------------+---------------------------------------------+-------+
7. The parties to the investigation can provide their comments on the proposed product under
consideration/PCN methodology for the purpose of this investigation, if any, within thirty (30) days from the
date of initiation of the investigation. The interested parties are required to substantiate their comments with
relevant evidences.
C. Like article
8. The applicant has claimed that the product produced by the applicant is identical to the imported product.
Product produced by the applicant is comparable to the imported goods from the subject country in terms of
technical specifications, manufacturing process & technology, functions & uses, pricing, distribution &
marketing and tariff classification of the goods. The two are technically and commercially substitutable and
should be treated as like article under the Rules. Therefore, for the purpose of the present investigation, the
product produced by the applicant is being treated as like article to the product under consideration imported
from the subject country.
D. Subject country
9. The subject country in the present investigation is China PR.
E. Period of investigation (POI)
10. The period of investigation (POI) for the present investigation is 1st October 2022 – 30th September 2023 (a
period of 12 months). The injury period for the investigation will cover the periods 2020-21, 2021-22, 2022-
23 and the period of investigation.
F. Domestic Industry and Standing
11. The application has been filed by the M/s Sudarshan Chemical Industries Limited. Anupam Colours Private
Limited, Hercules Pigments Private Limited, Kwalichem Private Limited, Micas Organic Limited, Unity Dye
Chem Private Limited, Vijay Chemical Industries and Voxco Pigments and Chemicals Private Limited have
supported the application. In addition, Pigments Manufactures Association of India has also supported the
application.
12. On the basis of the information available, the production of the Sudarshan Chemical Industries Limited
accounts for a major proportion in the domestic production of like article in India. Further, the applicant has
stated that it has not imported the product under consideration from the subject country and is not related to
any exporters in the subject country nor to any importers in India.
13. In view of the above, the Authority notes that the applicant constitutes "domestic industry" within the
meaning of Rule 2(b) of the Rules and the application satisfy the criteria of standing in terms of Rule 5(3) of
the Rules.
G. Normal Value
14. The applicant has claimed that in terms of Article 15(a)(i) of China's Accession Protocol, the normal value
for Chinese producers may be determined based on costs or domestic selling prices prevailing in China, only
if the responding Chinese producers demonstrate that their cost and price information are based on market
driven principles and allow for fair comparison in terms of Para 1 to 6 of Annexure I to ADD Rules, failing
which, normal value for Chinese producers must be determined based on para 7 and 8 of Annexure to the
rules.
15. The applicant has claimed that the product under consideration is imported into India from Germany and
Korea. The import volume of Korea RP is above de-minimis level. Therefore, the applicant has determined
normal value on the basis of import price from Korea RP. The interested parties may offer their comments on
the normal value methodology proposed by the applicant.
16. However, for the purpose of initiation, and in accordance with para 7 of annexure 1 of the rules, the
Authority has considered the normal value on the basis of the price paid or payable in India. The Authority
has considered the cost of production of the domestic industry as adjusted with reasonable addition for profit
for the purpose of determining normal value.
H. Export Price
17. The applicant has computed the export price of the product under consideration by considering the CIF price
of the subject goods as reported in the secondary source data. the Price adjustments have been made on
account of ocean freight, marine insurance, commission, inland freight, port expenses, and bank charges to
arrive at ex-factory export price. Export price claimed by the applicant is prima facie considered for the
purpose of initiation of the investigation.
I. Dumping margin
18. Considering the normal value and the export price as determined above, the dumping margin has been
determined. It is noted that the dumping margin is significant and above the de minimis level. Thus, there is
sufficient prima facie evidence that the normal value for the product under consideration is higher than the
price at which it is exported from the subject country indicating that the product originating or exported from
the subject country is being dumped in the Indian market by the exporters.
J. Injury and causal link.
19. The information furnished by the applicant has been considered for the assessment of injury to the domestic
industry. The applicant has furnished prima facie evidence regarding the injury as a result of the alleged
dumping, resulting in a significant decline in the profitability of the domestic industry. The applicant has
claimed that despite no demand supply gap, the volume of subject imports has increased. To hold its market
share, the applicant has sacrificed on their profitability, resulting in decline in profits, cash profits, PBIT, and
returns on investments. There is sufficient prima facie evidence of material injury being caused to the
domestic industry by the dumped imports of the subject goods from the subject country to justify the
initiation of the anti-dumping investigation.
K. Initiation of anti-dumping investigation.
20. On the basis of the duly substantiated written application by the applicant, and having satisfied itself, on the
basis of prima facie evidence submitted by the domestic industry, about the dumping of the product under
consideration originating in or exported from the subject country, injury to the domestic industry and causal
link between such alleged dumping and injury, and in accordance with Section 9A of the Act read with Rule
5 of the Rules, the Authority, hereby, initiates an investigation to determine the existence, degree and effect
of any alleged dumping in respect of the product under consideration originating in or exported from the
subject country and to recommend the amount of anti-dumping duty, which if levied, would be adequate to
remove the injury to the domestic industry.
L. Procedure
21. Principles as given in Rule 6 of the Rules will be followed for the present investigation.
M. Submission of information
22. All communication should be sent to the Designated Authority via email at email addresses dd15-
[email protected] and [email protected] with a copy to [email protected] and [email protected]. It must be
ensured that the narrative part of the submission is in searchable PDF/MS Word format and data files are in
MS Excel format.
23. The known producers/exporters in the subject country, the government of the subject country through its
embassy in India, and the importers and users in India who are known to be associated with the subject goods
are being informed separately to enable them to file all the relevant information within the time limits
mentioned in this notification. All such information must be filed in the form and manner as prescribed by
this initiation notification, the AD Rules, 1995 and the applicable trade notices issued by the Authority.
24. Any other interested party may also make a submission relevant to the present investigation in the form and
manner as prescribed by this initiation notification, the AD Rules, 1995 and the applicable trade notices
issued by the Authority within the time limit mentioned in this initiation notification.
25. Any party making any confidential submission before the Authority is required to make a non-confidential
version of the same available to the other interested parties.
26. Interested parties are further advised to keep a regular watch on the official website of the Designated
Authority http://www.dgtr.gov.in/ for any updated information with respect to this investigation.
N. Time limit
27. Any information relating to the present investigation should be sent to the Designated Authority via email at
email address [email protected] and [email protected] with a copy to [email protected] and adv13-
[email protected] within 30 days from the date on which it was sent by the Designated Authority or transmitted to
the appropriate diplomatic representative of the exporting country as per Rule 6(4) of the AD Rules. If no
information is received within the stipulated time limit or the information received is incomplete, the
Authority may record its findings on the basis of the facts available on record and in accordance with the AD
Rules, 1995.
28. All the interested parties are hereby advised to register themselves in the subject investigation and file their
questionnaire responses within the above time limit as stipulated in this notification.
29. Where an interested party seeks additional time for filing of submissions, it must demonstrate sufficient cause
for such extension in terms of Rule 6 (4) of the AD Rules, 1995 and such request must come within the time
stipulated in this notification.
O. Submission of information on confidential basis
30. Where any party to the present investigation makes confidential submissions or provides information on a
confidential basis before the Authority, it is required to simultaneously submit a non-confidential version of
such information in terms of Rule 7(2) of the AD Rules and in accordance with the relevant trade notices
issued by the Authority in this regard.
31. Such submissions must be clearly marked as "confidential" or "non-confidential" at the top of each page. Any
submission which has been made to the Authority without such markings shall be treated as "non-
confidential" information by the Authority, and the Authority shall be at liberty to allow other interested
parties to inspect such submissions.
32. The non-confidential version of the information filed by the interested parties should essentially be a replica
of the confidential version with the confidential information preferably indexed or blanked out (where
indexation is not possible) and such information must be appropriately and adequately summarized
depending upon the information on which confidentiality is claimed.
33. The non-confidential summary must be in sufficient detail to permit a reasonable understanding of the
substance of the information furnished on a confidential basis. However, in exceptional circumstances, the
party submitting the confidential information may indicate that such information is not susceptible to a
summary, and a statement of reasons containing a sufficient and adequate explanation in terms of Rule 7 of
the AD Rules, 1995 and appropriate trade notices issued by the Authority, as to why such summarization is
not possible, must be provided to the satisfaction of the Authority. The other interested parties can offer their
comments on the confidentially claimed within 7 days of receiving the non-confidential version of the
document.
34. Any submission made without a meaningful non-confidential version thereof or without a sufficient and
adequate cause statement in terms of Rule 7 of the AD Rules, 1995 and appropriate trade notices issued by
the Authority, on the confidentiality claim shall not be taken on record by the Authority.
P. Inspection of public file
35. A list of registered interested parties will be uploaded on the DGTR's website along with the request therein
to all of them to email the non-confidential version of their submissions to all other interested parties.
Q. Non-cooperation
36. In case any interested party refuses access to and otherwise does not provide necessary information within a
reasonable period or within the time stipulated by the Authority in this initiation notification, or significantly
impedes the investigation, the Authority may declare such interested party as non-cooperative and record its
findings on the basis of the facts available to it and make such recommendations to the Central Government
as deemed fit.
ANANT SWARUP, Designated Authority
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