Updates

Initiation of Sunset Review investigation imposed on the imports of Melamine originating in or exported from China PR (22.09.2020)

Product description –Melamine is a tasteless, odourless and non-toxic chemical used for making melamine formaldehyde which in turn is used for producing downstream products. Melamine formaldehyde resin used for laminates offers good hardness, resistance to scratch, stain, water and heat.

HS Codes – The HS code prescribed under the Customs Tariff Act, 1975 is 29336100.

Uses – Melamine is used in manufacturing of dinnerware, laminate flooring, dry erase boards, and insulation, in sound proofing material and in cleaning products. Melamine is reacted with formaldehyde and made into resins or moulding powder for making innumerable products of beauty and utility.

Countries involved –The present investigation is a sunset review investigation which has been initiated against China PR.

Applicants – Gujarat State Fertilizers and Chemicals Limited

Period of investigation – The period of investigation (POI) for the present investigation is 1st April 2019 to 31st March 2020 and the injury analysis has been done for 2016-17, 2017-18, and 2018-19.

Other investigations involving the product – Original finding recommending anti-dumping duties on imports from China was concluded in in 2004. Thereafter, duties have been extended in two subsequent sunset review as well. Post the second sunset review, a new shipper review  was also conducted.

Anti-dumping duties were also imposed against the imports of subject goods from European Union, Iran, Indonesia and Japan in 2012. However, the duties were not extended in the sunset review.

Fact of the present case – The Authority has found prima facie evidence of dumping and consequential injury to the domestic industry on account of volume effect i.e. significant imports, low production, capacity utilization, sales and market share and price effect due to positive and significant price undercutting and price underselling which has led to losses, cash losses and negative return on capital employed. Further, the Authority also examined likelihood of injury on account of significant dumped imports inspite of duties, third countries dumping, price attractiveness of the Indian market, injurious exports to other countries, capacity expansions, surplus capacities, duties imposed by other countries against the subject country and export orientation in the subject country also indicate a likelihood of dumping and consequential injury on cessation of the anti-dumping duty