Product description – The product under consideration is Halobutyl-Rubber (HIIR), such as Bromobutyl Rubber (BIIR) or Chlorobutyl Rubber (CIIR).
HS Codes – 4002 39 00
Uses – HIIR is used for tire inner liners, hoses, seals, membranes, tank linings, conveyor belts, protective clothing and for consumer products, such as ball bladders for sporting goods.
Countries Involved – Japan, Russia, Singapore, the United Kingdom and the United States of America.
Applicant – Reliance Sibur Elastomers Private Limited
Period of investigation – 1st April 2022 to 31st March 2023.
Injury period – 1st April 2019 – 31st March 2020, 1st April 2020 – 31st March 2021, 1st April 2021 – 31st March 2022 and the period of investigation.
Margins and recommended duties:
Country | Producer(s) | Dumping margin (%) | Injury margin (%) | Duty ($/MT) |
Japan | Japan Butyl Co., Limited | 20-30 | 25-35 | 694 |
Any other | 35-45 | 40-50 | 956 | |
Russia | Any other | 60-70 | 35-45 | 1,214 |
Singapore | Arlanxeo Singapore Pte Limited | 20-30 | 35-45 | 694 |
ExxonMobil Asia Pacific Pte Limited | 30-40 | 40-50 | 1,065 | |
Any other | 50-60 | 55-65 | 1,487 | |
United Kingdom | ExxonMobil Chemical Limited | 0-10 | 0-10 | 215 |
Any other | 20-30 | 15-25 | 710 | |
United States of America | ExxonMobil Product Solutions Company | 5-15 | 15-25 | 311 |
Any other | 25-35 | 30-40 | 743 |
Key Findings –
- There is no requirement for exclusion of a product grade from the scope of the product under consideration, wherein the domestic industry has the capability to produce said product grade.
- A product type can only be excluded if it has been imported into the country, but the domestic industry has not supplied a like article.
- Mere existence of relationship between parties do not disqualify a producer from constituting domestic industry.
- No adjustment can be made for level of trade unless the exporters demonstrate that there is a difference in marketing functions conducted for sales at different levels.
- A producer cannot be granted individual dumping margin, unless the exporters forming part of channel of distribution participate before the Authority.
- If a producer did not face startup operations during the period of investigation, no adjustment shall be allowed in cost of production for the same.
- An adjustment of shutdown cost shall not be allowed, where such cost was not recorded as shutdown cost in books of accounts.
- HIIR is not an extension of IIR as the former entail significant investments and substantial value addition. They are produced in different plants, using different manufacturing processes and are classified under different HS Codes.
- Since the industry was an establishing industry, the actual performance of the domestic industry was compared to its projected performance.
- The subject goods are not a major cost to the downstream industry and is likely to have an impact of 0.31% on the price of the downstream product.
- Imposition of duty shall provide a level playing field for keeping the investments already made, viable. It shall not lead to creation of monopoly in India.
- The imposition of duty is not likely to affect availability of product as the domestic industry has sufficient capacity to cater to the Indian demand.