DGTR issued Final Findings recommending continuation of Anti-Dumping Duties in Sunset Review investigation into imports of ‘Phenol’ originating in or exported from South Africa (22.12.2020)

Product description – The product under consideration is Phenol. The product is marketed in two forms- bulk (in loose) and packed. Bulk sales are normally in loose form, whereas packed consignments can be of much smaller container loads and generally packed in drums.

HS Codes – The product is classified under Customs Tariff heading no. 2907.11 and 2707.60 as per Indian Trade Classification.

Uses – It is used in Phenol Formaldehyde Resins, Laminates, Plywood, Particle Boards, Bisphenol-A, Alkyl Phenols, Pharmaceuticals, Diphenyl Oxide, etc.

Country involved – South Africa

Applicants – M/s. Deepak Phenolics Ltd., M/s. Hindustan Organics Chemicals Ltd. and M/s. SI Group India Pvt. Ltd

Date of imposition of duty – The current duties are valid till 9th January, 2021. The present duty was recommended on 22nd December 2020 and is yet to be imposed by the Ministry of Finance.

Date of initiation – 27th December, 2019

Period of investigation – 1st April to 30th September, 2019 (6 months)

Injury period – 1st April 2016 – 31st March 2017, 1st April 2017 – 31st March 2018, 1st April 2018 – 31st March, 2019 and the period of investigation.

Date of levy of provisional duty (if any, with Customs Notification No.) – N/A

Margins and proposed duty –

Producer Dumping margin Range (%) Injury Margin Range (%) Proposed Duty (US$/MT)
South Africa 80-100 0-10 18.16

Key findings –

  1. The performance of the domestic industry suffered significant deterioration during the period of investigation. The imports are undercutting the prices of the domestic industry and price underselling is positive.
  2. The imports from subject countries are suppressing and depressing the prices of the domestic industry.
  3. The domestic industry has suffered continued material injury and imports are likely to enter the Indian market at dumped prices in the event of expiry of the existing anti-dumping duty.
  4. The dumping margin and injury margin is positive in respect of imports of the product under consideration from the subject countries, thus resulting in continued dumping of subject goods and consequent injury.
  5. The producers/exporters in the subject countries hold surplus production capacities, unutilized and freely disposable capacities and are highly export oriented. The surplus capacities can be diverted to India in the event of cessation of anti-dumping duty as India is a major export destination. The exporters are also expanding their already surplus capacities.  
  6. There is likelihood of recurrence of injury to the domestic industry, in the event of cessation of anti-dumping duty.