Product description – The product under consideration in the present investigation is “Saccharin in all its forms”. “Saccharin is a non-nutritive sweetener and considered to be low calorie substitute for cane sugar. Primarily there are two types of Saccharin i.e. soluble and insoluble. In market parlance soluble saccharin is called sodium saccharin whereas insoluble saccharin is called saccharin or saccharin acid. Saccharin is produced in two physical forms, viz. granular and powder. Sodium saccharin in granular form is used in situations where saccharin will be dissolved, the powder form which has been grounded and spray dried is used in dry mixes and pharmaceuticals. It is slightly soluble in water. Insoluble form of saccharin is used in many pharmaceutical and medical applications. Saccharin is used in a variety of industry such as food and beverage, personal care products, table top sweeteners, electroplating brighteners, pharmaceuticals, etc. All forms of Saccharin have been within the scope.
HS Codes – The product is classified under Chapter 29 the Customs Tariff Act, 1975 under subheading 29251100.
Uses – Sodium saccharin in granular form is used in situations where saccharin will be dissolved, the powder form which has been grounded and spray dried is used in dry mixes and pharmaceuticals.
Countries involved – Thailand
Applicants – M/s Swati Petro Products Private Limited
Past investigations involving the product – A countervailing duty was imposed on imports of “Saccharin” from China vide Final finding F. No. 6/18/2018- DGAD dated 19th June 2019, which was notified by Notification No. 2/2019-Customs (CVD) dated 30th August 2019.
Date of Initiation – 17 March, 2022
Period of Investigation – April 2021 to March 2021
Injury Period – April 2018 to March 2019, April 2019 to March 2020, April 2020 to March 2021 and the period of investigation.
Extended Duty – The Extended Duty determined by the Designated Authority in the original investigation for China PR is extended now in case of Thailand and is the validity of the countervailing duty on the imports of Saccharin originating in or exported from Thailand would be co-terminus with the countervailing duty on the import of Saccharin originating in or exported from China PR.
|S. No.||Heading||Description of goods||Country of Origin/Export||Producer||Duty amount as % of CIF Value|
|1||29251100||Saccharin in all its form||Thailand||Any||20|
Key findings –
- There has been a change in pattern of trade in case of the PUI. It is seen that the imports from Thailand that were otherwise non-existent till 2018-19, started entering the domestic market for the first time in 2020-21. Correspondingly, after the imposition of countervailing duties on China on 30th August, 2019, the volume of imports from China started declining.
- The goods exported from Thailand are of Chinese origin which incorporated the subsidy provided by China PR in this product which has already been quantified in the original investigation.
- There is no other due cause or economic justification for the transhipment of the PUC from the PUI other than the avoidance of the payment of the countervailing duty in force on import of Saccharin originating in or exported from China PR.
- Imports of PUI from Thailand are entering at dumped prices.
- The import of PUl have undermined the remedial effect of existing CVD measure on the PUC imposed vide Custom Notification No. 02/2019- Cus(CVD) dated 30th August, 2019.
- The commercial gain due to evasion of countervailing duty on the PUC has benefitted the producers/exporters by exporting the PUI through Thailand.
- M/s Sandeep Organics Private Limited an importer from the investigation also stated that the imports from Thailand and Cambodia primarily look suspicious and there are strong chances of evasion of duty / misdeclaration which needs to be ascertained as the exporter is from a different country.