Product description – Polyvinyl Chloride (PVC) Suspension Resins with Residual Vinyl Chloride Monomer (RVCM) content above 2 PPM.

Product exclusions –

1. PVC Suspension Resins with Residual VCM upto 2 PPM
2.  Cross-linked Poly Vinyl Chloride
3. Chlorinated Poly Vinyl Chloride (CPVC)
4. Vinyl Chloride Vinyl Acetate Copolymer (VC-Vac)
5. Poly Vinyl Chloride Paste Resins
6. Poly Vinyl Chloride Blending Resins
7. PVC Resins manufactured through bulk mass polymerization, micro-suspension polymerization or emulsion polymerisation process.

HS Code – 39041020

Uses – It is used manufacturing various products like pipes and fittings, flexible hoses, films/sheets, bottles, profiles, wire and cables, footwears etc.

Applicants – Chemplast Cuddalore Vinyls Limited and DCW Limited

Date of Initiation – 16^th September 2022

Most recent period – 1^st January 2022 – 30^th June 2022

Investigation Period – 1^st April 2019 – 30^th June 2022

Quotas recommended –  

Quarter	1st	2nd	3rd	4th
Total PUC*	54,203	54,920	55,646	56,382
Imports from China	20,494	20,765	21,039	21,317
Imports from Taiwan	15,100	15,299	15,502	15,707
Imports from USA	9,690	9,818	9,948	10,079
Imports from Russia	8,920	9,038	9,157	9,279

Key Findings-

1. The investigation authority has the discretion to define the product under consideration. There is no restrictions on adopting a narrow definition of the product under consideration.
2. The domestic industry may not produce identical product to the product under consideration but may be a producer of directly competitive product.
3. The applicants produce PVC Suspension Resins with RVCM content upto 2 PPM which is a directly competitive product to the product under consideration. This is evident from the fact that the two are used interchangeably by the consumers, in the same manner and for the same purpose.
4. Plexconcil is an association formed to promote exports from India and does not fall within the definition of “interested party” as per Rule 2(d).
5. In order to determine the RVCM content in the product, the Authority has relied upon the standards established in the country of origin, specification sheets of the producers or on the basis of the product actually supplied by the exporters. Accordingly, the quota has been determined for China, Russia, Taiwan and USA.
6. Since there is mismatch in the data provided by the exporters and that given in the DG Systems data, the Authority has based its examination upon the DG Systems data.
7. The import volume has doubled in the most recent period as compared to 2019-20 to 2020-21. The surge in imports is so significant that even though the imports of like article declined, the overall imports of PVC Suspension Resins have increase.
8. The surge in imports is due to unforeseen development which includes increase in petrochemical prices (including VCM) due to Russia-Ukraine Conflict leading to increase in cost of production of PVC Suspension Resins manufactured through ethylene route. While the domestic industry manufactures PVC Suspension Resins through ethylene route, the producers in China manufacture the product under consideration through carbide/coal route.
9. While coal is available to producers in China domestically at prices below the international market price, the producers in India were impacted by increase in global freight rates as they are dependent upon imports of VCM for manufacturing the product.
10. The surge in imports is also due to disparity in consumption and production of PVC Suspension Resins in China. While the producers in China are situated in the western part which did not face as many lockdowns, the consumers of the product are situated in the eastern part which faced multiple lockdowns due to COVID-19. This led to decline in demand without proportionate decline in production leading to exportable surplus.
11. The domestic industry has suffered serious injury and there is a threat of further serious injury as the volume of imports has increased significantly which are undercutting the prices of the domestic industry, Chinese exporters hold significant surplus capacities, the prices of domestic industry have declined leading to decline in profitability.