Final Finding issued in Anti-Dumping investigation concerning imports of “Rubber Chemical PX-13” from China PR, Korea RP and USA (26.07.2021)

Product Description – The product under consideration is “Rubber Chemicals PX-13” (hereinafter also referred to as PX-13) also known as 6PPD, Antioxidant 6PPD, Kumanox 13, Santoflex 6PPD, Sirantox 6PPD, Vulkanox 4020, Antioxidant 4020, Dussantox 6PPD, Antage 6C, N-1,3-Dimethylbutyl)-N’-Phenyl-P-Phenylenediamine, etc.

HS Codes – The product is classified under the Chapter 38 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) under the tariff custom classification 3812. However, there are also imports for the product under consideration under the Chapter 29 of the First Schedule.

Uses – PX-13 is an alkyl-aryl-PPD antidegradant most widely used in the tyre and non-tyre sector of the rubber industry. PX-13 offers excellent resistance to rubber vulcanizates against degradative forces such as ozone (static as well as dynamic), flex-cracking and fatigue, oxidative heat ageing, metal-ion catalyzed oxidative ageing, UV light and weathering. It is used as antioxidants in treating natural rubber, synthetic rubber (SBR, Butadiene Rubber, Nitrile Rubber, Carboxylated Rubber) and other synthetic rubber-based compounds used for manufacture of various rubber products to achieve the desired life cycle of the rubber product.

Country Involved – China PR, Korea RP and USA.

Applicant – M/s NOCIL Limited.

Date of initiation – 27th May, 2020.

Period of Investigation – 1st April 2019 to 31st March 2020 (12 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.

Final Findings – 26th July, 2021.

Dumping Margin, Injury margin and proposed duty:

Country Producer Dumping Margin Range Injury Margin Range Proposed Duty (US $/ MT)
China PR Sennics Co., Ltd. Shandong 30-40 20-30 591.36
China PR Sennics Co., Ltd. Tai‘an 30-40 20-30 591.36
China PR All other producers/exporters 50-60 40-50 924.47
Korea RP Kumho Petrochemical Co. Ltd. 20-30 20-30 489.56
Korea RP All other producers/exporters 40-50 20-30 612.18
USA Lanxess Corporation 10-20 (10-20) No duty recommended
USA All other producers/exporters 10-20 (10-20) No duty recommended

Key Findings-

  1. The Applicant constitutes domestic industry under Rule 2(b) of the Rules and considers that the application satisfied the criteria of standing in terms of Rule 5(3) of the Rules.
  2. The product produced by the domestic industry is like article to product under consideration imported from the subject countries.
  3. The very issue of rejection of consumption price of 4-ADPA reported by Kumho has been settled by the Designated Authority and further upheld by Hon’ble CESTAT and Hon’ble Supreme Court.
  4. The use of actual purchase price of 4ADPA by KKPC from the said non-market economy company would not reasonably reflect the cost associated with production of PX13 (6 PPD), and therefore, the consumption price of 4-ADPA reported by Kumho Petrochemicals cannot be adopted for the purpose of determination of cost of production.
  5. Considering the normal value and export price for subject goods, the dumping margins for the subject goods from each of the subject countries have been determined, and the margins are significant.
  6. The Domestic Industry has suffered material injury due to the dumped imports.
  7. No anti-dumping duty was recommended against exports of subject goods from USA as injury margin is negative.
  8. The imposition of duty will be in public interest.