DGTR issued Final Findings recommending extension of Anti Dumping Duties in Sunset Review investigation into imports of Fluoroelastomers (FKM) originating in or exported from China PR (19.10. 2020)

Product description – The product under consideration (PUC) in the present investigation is Fluoroelaslomers (FKM). Fluoroelastomers (FKM) is a class of synthetic rubber designed for very high temperature operation. With excellent over-all properties, Fluoroelastomers (FKM) is called the Rubber King. lt contains not-fully-fluorinated molecular structure, and its main and side chains contain strong electronegativity of Fluorine atoms. “Fluoroelastomers” are a family of fluoropolymer rubbers, not a single entity. It can be classified by their fluorine content, 66%, 68%, & 70% respectively. FKMs are broadly categorized in two sets – Copolymer and Terytlymer.

HS Codes – 3904

Uses – There are various applications of Fluoroerastomers (FKM) such as industrial use in hydraulic O-ring seals, check valve balls, electrical connectors, automotive use in shaft seals, fuel injector O-rings, and aerospace use in O-ring seals in fuels, lubricants & hydraulic system, manifold gaskets and fuel tank bladders.

Countries involved – China PR

Applicants – M/s Gujarat Fluorochemicals Ltd.

Date of imposition of duty – The current duties are valid till 27th October 2020. The present duty was recommended on 19th October, 2020 and is yet to be imposed by the Ministry of Finance.

Date of initiation – 7th February, 2020

Period of investigation – January 2019 to September 2019 (9 months)

Injury period – April 2016 – March 2017, April 2017 – March 2018, April 2018 – March 2019, and the POI (9 months).

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

Margins and proposed duty

Producer Dumping Margin Injury Margin Proposed Duty
Range Range (US$/Kg)
M/s.  Chenguang Fluoro and Silicone Elastomers Co.,Ltd. 20-40% 20-40% 3.85
M/s Zhonghao Chenguang Research Institute of Chemical Industry Co., Ltd. 0-20% 0-20% 1.30
M/s  Daikin Fluorochemicals (China) Co., Ltd through M/s AUL 0-20% 0-20% 1.04
M/s Inner Mongolia 3F Wanhao Fluorochemical Co/ Ltd 60-80% 60-80% 6.84

Key findings

  1. A product cannot be excluded from the scope of investigation merely on grounds of quality.
  2. The responding producers continue to dump the PUC into India.
  3. The ADD recommended after the original investigation was imposed during the POI of the present investigation. Hence, the imports from the subject country have declined in absolute and relative terms during the POI.
  4. Price undercutting is negative throughout the injury period and marginally positive in the POI.
  5. The landed price of subject imports is lower than the cost of production for the DI throughout the injury period. It is observed that there is a suppressing effect on the prices of the DI. There is also significant price underselling during the injury period and POI.
  6. The principal factor affecting the domestic prices is the dumped imports of the PUC from the subject country.
  7. The Chinese producers have significant unutilised capacities.
  8. In the event of cessation of ADD, the exporters in the subject country are likely to intensify export of dumped product to India, leading to intensified injury to the DI.