Product description- The product under consideration is “Phenol”. Phenol is an aromatic compound. The chemical formula of this organic compound is C6H6O. Phenol is also known as Carbolic acid.

HS Codes- The product under consideration is classified under Chapter 29 of the Custom Tariff Act, 1975 under sub-heading 2907. The product under consideration is imported under 29071110 and 29071190.

Uses- The various uses of the product include Phenol Formaldehyde Resins, Laminates, Plywood, Particle Boards, Bisphenol-A, Alkyl Phenols, Pharmaceuticals, Diphenyl Oxide etc.

Country Involved- Saudi Arabia, Singapore, South Africa, South Korea. Taiwan. Thailand and United States of America.

Applicants-

1. Deepak Phenolics Limited (DPCL);
2. Hindustan Organic Chemicals Ltd (HOCL).

Period of investigation- 1^st January 2025 to 31^st December 2025 (12 months).

Injury period- 2022-23, 2023-24, 2024-25 and the period of investigation.

Normal Value– Prima Facie, the Authority has determined the normal value the normal value for South Africa, Saudi Arabia and United States of America has been constructed based on the best estimates of cost of production of the product under consideration with reasonable addition for profit. For Singapore, South Korea, Taiwan, and Thailand, ICIS prices are taken with relevant adjustments to arrive at ex-factory price.

Export Price– Prima Facie, the Authority has determined the export price considering the CIF price of the product under consideration as reported in DG System data. Adjustments have been made for ocean freight, marine insurance, handling charges, port expenses, commission, credit cost and inventory carrying cost.

Dumping Margin– The normal value and the export price have been compared at ex-factory level, which prima facie shows that the dumping margin is above the de-minimis level and is significant.

Facts of the present case- The present application was filed by Deepak Phenolics Limited (DPCL) and Hindustan Organic Chemicals Ltd (HOCL). The applicants have submitted that they were suffering material injury due to dumped imports from subject countries. The import price has not moved in line with the cost. As a result, the applicants have reduced their prices without proportionate decline in the cost. This has resulted in price depression. The applicants have not suffered volume injury because of the compulsions of the production process. The adverse effect of the dumped imports has been felt only on price parameters. The applicants have suffered steep decline in profits resulting into losses in the period of investigation. The applicants have suffered cash losses, negative return on capital employed. There is a demand and supply gap in the country with a scope for investment. However, the losses do not justify any investment in the business. The Authority, having been prima facie satisfied by the information provided, initiated the investigation vide Notification No. F. No. 6/12/2026-DGTR dated 19th March 2026.