Product description – The investigation concerns imports of the following Rubber Chemicals, namely:
- 2,2,4-trimethyl-1,2-dihydroquinoline or TDQ
- N-(cyclohexylthio) pthalimide or PVI
- N-cyclohexyl-2-benzothiazolesulfenamide or CBS.
HS Codes – 3812
- TDQ – It is used to provide long-term protection to rubber vulcanizates against oxidative ageing at ambient as well as elevated temperatures and also offers protection against degradation caused by ozone under static as well as dynamic conditions.
- PVI – It is used to produce the desired scorch delay depending on the type of rubber, loadings of reinforcing fillers, selection of accelerator type and dosage, sulphur dosage etc. used in the compounding formulations.
- CBS – It is used for scorch safety during rubber compound processing operations and improves the storage life of processed rubber stocks.
Countries Involved – China PR, European Union and Russia in respect of imports of TDQ, China PR in respect of imports of PVI and China PR and European Union in respect of imports of CBS.
Applicant – NOCIL Limited
Period of Investigation – October 2019 – September 2020 (12 months)
Injury Period – 2017-18, 2018-19, 2019 –2020 and the period of investigation
Past investigations involving the product – The products under investigation have been subject to multiple anti-dumping investigations in the past. Duties were first imposed on TDQ from Chinese Taipei and EU in 2005, which continued to be imposed on EU till 2016. Duties were also imposed on TDQ, PVI and CBS from China PR in 2007 which continued till 2018.
Facts of the present case – The present application was filed pursuant to significant imports of certain rubber chemicals viz., TDQ from China PR, European Union and Russia, and PVI from China PR, and CBS from China PR and European Union. The Applicant demonstrated that injury to the domestic industry is due to dumping of the subject goods. The subject imports have had an adverse impact on the domestic industry resulting in a decline in production, capacity utilisation, domestic sales volumes, market share, profitability, cash flow and return on capital employed. Import prices were underselling, undercutting, depressing and suppressing the prices of the domestic industry. The DGTR has found sufficient prima facie evidence of dumping, injury to the domestic industry and causal link between such alleged dumping and injury, warranting initiation of investigation.