Product Under Investigation – The Mid-Term review request is for exclusion of “Glass Fibre Rovings used for production of Wind Grade Fabrics for Wind Mill Blades” from scope of anti-dumping duty.
HS Codes – This product is classified under HS Code 70191200.
Country involved – China PR.
Applicant – M/s Arvind PD Composites Private Limited.
Date of initiation – 4th October, 2019
Grounds for Review –
- Domestic Industry does not produce Glass Fibre Roving required to produce PUI.
- The glass rovings produced by the Domestic Industry have failed various fabric laminate tests carried out by wind mill blade manufacturers and international laboratories.
- Domestic Industry’s production capacities and sourcing pattern has changed due to closure of manufacturing facility.
- The Applicant is suffering due to non-availability of required input materials from the domestic market and have to import at higher costs.
Key findings –
- The fact that one or more consumer has not used the product or have found unsuitable does not imply that the same should be excluded when there are large number of consumers.
- A possible rejection of the product in 2015 because of failing to meet specifications cannot become a basis for exclusion now. The Authority noted that the wind grade fabric or a wind blade may fail for several reasons and the applicant has not established that the failure is solely because of the rovings. Further, the domestic industry is producing and selling and wind grade in Indian and international market.
- There are no standard specifications for the wind grade rovings and it changes from customer to customer. The rovings manufactured by the domestic industry meets the requisite specifications of the wind blade manufacturers.
- A lack of capacity to meet the demand cannot be a ground for exclusion of a product type.
- The relevant criteria for exclusion would be inability to produce and supply the goods and not inability of a particular customer to successfully use the product supplied by domestic industry.
- If the domestic industry produced and supplied a product conforming to standards, it cannot be held that the domestic industry has not produced and sold the product required by the consumers.
Recommendation – The domestic industry manufactures the like product to the Glass Fibre Roving required for the production of Glass Fabrics for Windmill Blades and it would not be appropriate to exclude the same from the scope of the product under consideration.