Product description- The product under consideration is “Acrylonitrile Butadiene Rubber” or “NBR”, specifically excluding Latex NBR, Powder NBR and Carboxylated NBR. Liquid NBR was excluded in the final findings since the same is not produced by the domestic industry.
NBR is a synthetic rubber, a copolymer of ACN and BD. The product is used in the manufacture of various rubber articles where resistance to oil, abrasion and heat applications are involved, such as oil seals, hoses, automotive products, gaskets, rice dehusking rolls, printers, fabrics, oilfield products, etc. NBR is produced in a number of different forms, differentiated in terms of mooney viscosity and acrylonitrile content.
HS Code- 40025900
Uses- NBR is used in the manufacture of various rubber articles where resistance to oil, abrasion and heat applications are involved, such as oil seals, hoses, automotive products, gaskets, rice de-husking rolls, printers, fabrics, oilfield products, etc.
Country Involved – China PR, European Union (EU), Japan, and Russia.
Date of Initiation- 26th May, 2020.
Period of Investigation– 1st July 2019 – 31st March 2020 (9 months).
Injury Period- 1st April 2016 – 31st March 2017, 1st April 2017 – 31st March 2018, 1st April 2018 – 30th June 2019 and the Period of Investigation.
Final Findings- 12th May,2021.
Dumping Margin, Injury margin and reference amount:
The Authority found it appropriate to impose a reference form of duty.
|Country||Producer||Dumping Margin Range||Injury Margin Range||Reference Amount (US$/MT)|
|EU||Arlanexo Emulsion Rubber France S.A.S.||110-120||0-10||2,086.78|
|Other producers/ exporters from EU||160-170||10-20|
|Japan||JSR Corporation||70-80||Negative||Not Applicable.|
|Other producers/ exporters from Japan||120-130||10-20||2,086.78|
|Russia||JSC Krasnoyarsk Synthetic Rubber Plant||50-60||20-30||2,086.78|
|Other producers/ exporters from Russia||60-70||30-40||2,086.78|
|China||All producers/exporters from China PR||40-50||20-30||2,086.78|
- Specific grade of an exporter cannot be treated as a PCN. The exporter did not suggest any PCN which could be universally applied. Even in past investigations on this product, no PCN was prescribed. None of the exporters except one found grade wise comparison necessary in the present case. The Authority did not find a PCN wise analysis appropriate in the case.
- Liquid NBR is excluded for the scope of the PUC as it is not been manufactured by the domestic industry.
- It is a consistent practice of the Authority to enhance the POI at the time of initiation to include most recent data. The Applicant substantiated the need for a 6-month POI stating that the price of PUC declined after June 2019 and as a result the performance of the domestic industry declined significantly during the period. It would not be appropriate to fix an investigation period when here is no allegation of dumping causing injury. After examining the facts, the Authority found a 9-month POI appropriate.
- For the 15-month injury period interval and 9-month POI, the use of “annualised” data is as per the practice followed by the Authority.
- There is no bar on the number of times a duty can be imposed or extended on a given product.
- The argument that the NBR produced by the petitioner is unsubstantiated. Difference in quality does not imply that a product is not like article.
- The interested parties have not demonstrated how the prices of NBR have impacted the consumers. None of the users provided the impact of the ADD on them. Even if the ADD has an impact on the price of NBR, fair competition in India will not be impacted by it.
- Demand-supply gap does not justify dumping of a product in the country especially when it is causing injury to the domestic industry.
- The argument that the ADD would impact NBR-PVC manufacturers, OEM suppliers, and rice roller manufacturers were rejected.
- The NV for all producers in China were calculated based on price actually paid or payable in India, duly adjusted, and including reasonable profit margin.
- Arlanxeo Emulsion Rubber France S.A.S., JSR Corporation, and Zeon Corporation had exported to India through unrelated non-cooperative exporters.
- There is no discrimination of exporters in subject countries as per Article 9.2 of the ADA.
- Decline in NBR prices is far steeper than decline in cost of production and cost on account of raw materials.
- The Authority examined a number of other factors allegedly causing injury to the domestic industry and found them irrelevant or not showing any impact or having insignificant impact.
- The overall performance of the domestic industry was at better state till April 2018-June 2019 but during POI period it dropped significantly.
- The domestic industry is unable to retain its prices in the market due to dumped imports in the country.
- The Domestic Industry has suffered material injury.
- In non-attribution analysis, only factors other than dumped imports need to be analysed. Hence, dumping from Korea is not required to be segregated. There exists a causal link between the dumping of the subject goods from the subject countries and injury to the domestic industry.
- The Authority recommended benchmark/reference form of ADD.