Product description – Uncoated paper in reel form of 40-130 GSM, having klemm absorbency of at least 12 mm per 10 minutes, wet tensile strength of 6-12 N/15 mm, and gurley porosity of 10-40 sec / 100 ml, containing titanium dioxide or pigments as fillers. It is commonly known as decor paper.  

Exclusions from the product scope – Printed ready-to-use decor paper

HS Codes – 4805 9100 and 4802 2090

Uses – Used as a decorative laminate for wallpapers or lining closets and for decorating wooden materials, in printed or unprinted form.

Country involved – China PR

Applicant – ITC Limited

Date of initiation – 30^th September 2020

Period of investigation – 1^st January 2019 – 31^st March 2020

Injury period – 2016-2017, 2017-2018, 2018- 2019 and the period of investigation.

Margins and proposed duty –

Producer	Country	Dumping margin (Range)	Injury Margin (Range)	Proposed Duty (US$/MT)
Kingdecor (Zhejiang) Company Limited	China PR	0-10	10-20	116
Shandong Boxing Ouhua Special Paper Company Limited and Zibo OU-MU Special Paper Company Limited	China PR	0-10	10-20	110
Any other producer and exporter	China PR	30-40	50-60	542

Key findings –

1. The Authority has concluded that printed ready-to-use decor paper cannot be included in the scope of the product under consideration as the domestic industry did not seek imposition of anti-dumping duty on the same.
2. The Authority has noted that the petitioner had imported the product under consideration in the injury period but since it did not import the subject goods during the period of investigation, it is eligible to constitute the domestic industry.
3. The Authority has noted that Shree Krishna Paper Mills & Industries Limited has filed a support letter. However, as injury information has not been submitted by it, it cannot be considered a part of domestic industry.
4. The Authority has noted that sorted import data relied upon by the domestic industry can be shared in hard copy and the other interested parties can seek authorization from the Authority for seeking raw transactions by transactions data from DGCI&S.
5. The Authority has determined PCN wise dumping margin and injury margin. The weighted average dumping margin and injury margin is positive and significant.
6. The Authority has calculated PCN-wise price undercutting. Since the participating producers / exporters account for 80% of imports to India, the PCN-wise landed price has been calculated based on the responses. Although the price undercutting for some of the PCNs is negative, the Authority has noted that price undercutting is only one of the injury parameters and subject imports have created a strain on the prices of the domestic industry.
7. The subject imports have increased in absolute and relative terms over the injury period and command the majority of imports into India. Imports have suppressed the prices of the domestic industry. The market share of domestic industry and Indian industry as a whole has declined over the injury period while that of the subject imports has increased. The imports have adversely impacted the profitability parameters of the domestic industry, thereby causing material injury to the domestic industry. Further, the domestic industry is faced with accumulated inventories.
8. The Authority has noted that the domestic industry has not suffered injury due to capacity expansion undertaken in 2017-18 as EBIDTA, which is not impacted by depreciation or finance cost, has decreased over the injury period.
9. The Authority has noted that demand-supply gap is not a justification for dumping by the exporters. Imposition of anti-dumping duty will not affect the availability of subject goods in India as it does not restrict imports from the subject country in any way. Further, the product under consideration can be imported from other countries including Italy, Japan, Germany and Poland.