Product Description- The product under consideration is Melamine.

HS Codes – The product is classified under Chapter 29 of the Customs Tariff Act, 1975 and is imported under 29336100.

Countries involved- China PR

Applicant – Gujarat State Fertilisers and Chemicals Limited (GSFC)

Period of investigation – 1st April 2024 to 31st March 2025.

Injury period – 2021-22, 2022-23, 2023-24 and the period of investigation

Margins and recommended Duties:

Key findings:

1. The product under consideration is “Melamine”. The difference in feedstock or production route does not by itself make the products different. The product produced by the domestic industry is a like article to the imported product.
2. The application has been filed by Gujarat State Fertilisers and Chemicals Limited, the sole producer of the like article in India, accounting for 100% of the Indian production.
3. In view of the large number of participating producers/exporters, the Authority resorted to sampling under Rule 17(3).
4. After the expiry of anti-dumping duty on imports from China PR in 2021, imports from China PR sharply increased, while imports from other countries declined. The share of China PR in total imports increased from 83% to 97%.
5. While demand increased by 31% over the injury period, the domestic sales of the domestic industry declined by 21% and its market share declined consistently. The market share of subject imports increased over the injury period.
6. The landed price of subject imports declined by 49% over the injury period, while the cost of sales of the domestic industry declined by only 2%. The domestic industry was forced to reduce its selling price by 54%, below its cost of sales.
7. The domestic industry was profitable in 2021-22, but its profits turned into losses in 2022-23 and it continued to suffer losses in 2023-24 and the period of investigation, with negative return on capital employed. Cash profits, though marginally positive in the period of investigation, remained insufficient to sustain operations.
8. The contention that duty should not be recommended because the Central Government did not impose duties on earlier recommendations was rejected, as each investigation is independent and determined on its own facts. Customs Notification No. 12/2026 and the QCOs on plywood and panel products were held to have no bearing on the determination of dumping, injury and causal link.
9. The Authority held that the directions of the Hon’ble Gauhati High Court in WP(C) No. 6568/2017 on disclosure of normal value, export price and non-injurious price related to notifications which have since lapsed, and do not apply to the present fresh investigation. The non-injurious price has been disclosed in the range of US$ 1,100–1,200 per MT.
10. The impact of the recommended duties on plywood, veneer, laminates and pigments is less than 2%.
11. Even at the residual duty of US$ 403 per MT, the impact is 0.26% on commercial plywood, 0.05% on veneer, 0.48% on laminates and 0.83% on pigments.
12. The data furnished by the participating users, namely Century Plyboards, Merino and Greenlam, shows an impact of 0–1% on their laminates.
13. Except Pristine Melamine LLP, which is registered as an MSME, none of the participating users are MSMEs.
14. Imports for exports are not subject to anti-dumping duty. Further, melamine is traded in the global market at significantly higher prices than in the Indian market, enabling the downstream industry to compete with global producers who consume melamine at fair prices.
15. Anti-dumping duty does not restrict imports. When duties on China PR were in force, significant volumes were imported from the European Union, Japan, Qatar and the UAE, and these third-country imports declined drastically after the expiry of the duties.
16. The existence of a demand-supply gap does not justify dumping. Despite duties in place in past, the demand for the product increased. 
17. While the impact on melamine formaldehyde resin and glazing powder is higher, resin producers are in a position to pass on the increase in cost.
18. Melamine is generally first converted into melamine formaldehyde resin before it is used in downstream products, and against melamine demand of about 1,50,000 MT, imports of melamine formaldehyde resin are only about 5,000 MT. The impact at the level of the final products, therefore, remains low. The imposition of anti-dumping duty is not against public interest.