Product description – The product under consideration (PUC) is “Aluminium foil upto 80 micron”. Aluminium foil of 5-micron gauge of width below 500mm having 99.35% purity for capacitors and aluminium foil from 5.5 microns to 80 microns for capacitors is included in the scope of the PUC.

The following are excluded from the scope of PUC:

• Aluminium foil below 5.5 microns for non-capacitor applications.
• Aluminium foil for capacitors, below 5 upto 5.5 microns, except aluminium foil of 5-micron gauge of width below 500mm having 99.35% purity for capacitors and aluminium foil from 5.5 microns to 80 microns for capacitors, which is included in the scope of the PUC;
• Ultra-light gauge aluminium foil having thickness of 5.5–7 microns which is backed with kraft paper and scrim, or glass cloth, whether plain or printed for use in insulation, spices packing, thermal fluid lines covering and tea bags application;
• Etched or formed aluminium foils used in electrolytic capacitors;
• Aluminium composite panels for facade cladding and signage applications;
• Clad with compatible non clad aluminium foil used for engine cooling and air conditioning systems in the automotive industry and industrial applications.
• Aluminium foil for beer bottle – aluminium foil of 10.5 micron with rough surface and perforated whether printed or not; to be used in beer bottle.
• Aluminium-manganese-silicon based and/ or clad aluminium- manganese silicon-based alloys, whether clad or unclad- with post brazing yield strength greater than 35 MPA, falling under tariff heading 7607 and 7606, for use in heat exchangers including radiators, charge air coolers, condensers, oil coolers, heater cores, evaporators, heat ventilation and air conditioning (HVAC) systems and parts thereof.
• Adhesive tapes.
• Colour-coated aluminium foil – either one side or both sides, irrespective of colour, shape or coating.
• Polyurethane coated aluminium foil – either one side or both sides, irrespective of colour, shape or coating.

HS Code – The PUC is classified under sub-heading 7607 of the Customs Tariff Act and is imported under 76071190, 76072090, 76072010, 76071110, 76071999, 76071991, 76071995, 76071910, 76071994, 76071993, and 76071992.

Uses – Aluminium foil is used extensively for protection, storage, and preparation of foods and beverages. It is used as a packaging material, for conservation and preservation of edible and food products. Major applications of aluminium foil are in the following:

a. pharmaceuticals industry for packing medicines

b. food industry for packing processed foods

c. cigarette industry for packaging

d. tobacco packing (Gutkha)

e. beer bottles

Country Involved – China PR

Applicants – M/s Hindalco Industries Ltd., M/s Shyam Sel & Power Ltd, M/s Shree Venkateshwara Electrocast Pvt. Ltd., M/s Ravi Raj Foils Ltd., M/s GLS Foils Product Pvt. Ltd., and M/s LSKB Aluminium Foils Pvt. Ltd.

Period of investigation – 1^st October 2022 to 30^th September 2023.

Injury period – 2019-20, 2020-21, 1^st April 2021-30^th September 2022 and the period of investigation.

Margins and recommended duties:

S. No.	Producer	Dumping Margin (Range)	Injury Margin (Range)	Duty
1	Henan Mingtai technology development Co. Ltd.	10-20	10-20	479 MT/USD
2	Henan Mingsheng New Material Technology Co. Ltd.
3	Sunho New Materials Technology Co. Ltd.	10-20	10-20	642 MT/USD
4	Shanghai Sunho Aluminum Foil Co.Ltd.
5	Jiangsu Dingsheng New Materials Joint-Stock Co. Ltd.	10-20	10-20	550 MT/USD
6	Inner Mongolia Lian Sheng New Energy Material Co., Ltd.
7	Hangzhou Five Star Aluminium Co. Ltd.
8	Non-sampled cooperative producers	10-20	10-20	568 MT/USD
9	Residual	20-30	20-30	721 MT/USD

Key Findings –

1. The application was filed by six producers constituting major proportion of Indian production, and were supported by ESS DEE Aluminium Ltd., Sparsh Industries Pvt. Ltd., SRF Altech Ltd., and Trefoil Packaging Pvt. Ltd.
2. Due to large number of producer/exporters, three groups- Sunho Mew Materials Technology Co. Ltd., Henan Mingtai Technology Development Co. Ltd. nad Dinsheng Group- were sampled for individual dumping and injury margin determination.
3. Demand increased consistently throughout injury period.
4. The volume of imports from subject country increased in absolute terms as well as in relative terms, especially in the POI where, it was three times the base year level.
5. Subject imports were undercutting and depressing the prices of the domestic industry.
6. Despite increasing capacity, domestic industry was unable to get proportionate increase in sales. Further, capacity utilisation also remained low throughout injury period.
7. Although DI’s market share grew marginally in POI, subject country imports rose sharply from 12% in the year before POI to 31% in POI.
8. During base and second year, DI faced losses due to subject country imports. After duties were imposed on subject country, imports shifted to Thailand, Malaysia and Indonesia, which by 2021 also started incurring ADD. This led to some improvement in DI’s performance, however, duties on subject country ceased in 2022, after which imports surged by 200% causing a sharp decline in profitability, leading to further financial losses.
9. PBIT per unit declined by almost 50% over injury period. Profitability, cash profit and ROI declined over injury period and turned negative in POI.
10. The level of inventories with the domestic industry has increased by over 300% the injury period.
11. No other factor has caused injury to the domestic industry.
12. Imposition of anti-dumping duties will have a negligible impact on the downstream industry and is in the larger public interest.