Product description – The product under consideration is Acetone imported from Korea RP, Saudi Arabia and Taiwan. It is also known as Dimethyl Ketone.
HS Codes – The product is classified under “Organic Chemicals” in Chapter 29 of the Customs Tariff Act, 1975 and under 29141100 as per Indian Trade Classification.
Uses – It is used in numerous organic synthesis either as solvent or as an intermediate. It is used in manufacture of bulk pharmaceuticals, agro-chemicals, dyestuffs, certain explosives and downstream chemicals. Acetone is specifically used in manufacture of Isophorone, Diacetone, Alcohol, Methyl Methacrylate and Bisphenol A. Besides this, it is used in the manufacture of certain rubber chemicals or Oxy Acethylene Cellulose Acetate.
Country involved – Korea RP, Saudi Arabia and Taiwan
Applicants – Deepak Phenolics Ltd., Hindustan Organics Chemicals Ltd. and SI Group India Pvt. Ltd.
Date of initiation – 07.08.2019
Period of investigation – 1st April 2018 to 31st March 2019 (12 months)
Injury period – April 2015 – March 2016, April 2016 – March 2017, April 2017 – March 2018, POI and Post POI (1st April 2019 to 30th September 2019(6 months)).
Dumping margin, Injury Margin & Proposed Duty – The following exporter specific dumping margin, injury margin and proposed duty has been determined by the Designated Authority:
|Sl. No.||Country||Producer||Dumping margin Range||Injury Margin Range||Proposed Duty (US$/MT)|
|1.||Taiwan||M/s Formosa Chemicals||0-10||Negative||86.10|
|2.||Taiwan||M/s Taiwan Prosperity||0-10||Negative||205.05|
|4.||Korea RP||M/s Kumho||0-10||Negative||79.75|
|5.||Korea RP||M/s LG Chem||Negative||Negative||79.75|
|6.||Korea RP||Any other||79.75|
|7.||Saudi Arabia||M/s Saudi Kayan Petrochemical Company||180-200||20-40||132.98|
|8.||Saudi Arabia||M/s Rabigh Refining||Negative||Negative||203.85|
|9.||Saudi Arabia||Any other||203.85|
Key findings –
- Domestic producers importing subject goods under duty free scheme, as well as for seed marketing purposes before the new plant is entirely operational are eligible to be included as domestic industry as the same has no impact on domestic market or prices.
- There is continued dumping of the subject goods from subject countries and the imports are likely to enter the Indian market at dumped prices in the event of revocation of duties.
- There is significant price undercutting by the imports of subject goods from the subject countries and also have a depressing effect.
- The domestic industry is suffering financial losses due to the price effects.
- The increase market share of the Domestic Industry is only because of existence of an anti-dumping duty.
- Imports have though reduced but continue into India at appreciable volume despite the levy of Anti-dumping duties.
- There is a likelihood of continuation of dumping and injury to the domestic industry in case the anti-dumping duty in force is allowed to cease at this stage.
- In the event of cessation of anti-dumping duty, the dumping and injury to the domestic industry will continue.
- The Authority, keeping in mind that the prices of Acetone are high due to the ongoing situation, considered it appropriate to recommend a price triggering mechanism so that the AD duty is invoked only when the price of import is lower than the established trigger price and recommended 508 $/MT (CIF) as a trigger price. In case the CIF import price of the subject goods from the subject countries is below this trigger price, then anti-dumping duty would have to be paid.