Final finding issued recommending imposition of anti-dumping duties on imports of Melamine from European Union, Japan, Qatar and United Arab Emirates (25.02.2022)

Product Description – Melamine is a tasteless, odourless and non-toxic substance used for making melamine-formaldehyde, which in turn is used in producing downstream products. Melamine formaldehyde resin used in laminates offers hardness, resistance to scratch, stain, water, and heat. Laminates used in some electrical applications possess high mechanical strength, good heat resistance and good electrical insulating properties.

Domestic industry – Gujarat State Fertilizers & Chemicals Limited

HS Code – 29336100

Uses – For the production of making melamine-formaldehyde. End use are Fluorescent Pigments, Commercial Plywood, MDF Board and Melamine Faced Board.

Country Involved – European Union, Japan, Qatar and United Arab Emirates.

Date of initiation – 26th February, 2021.

Period of investigation – April 2019 to September 2020 (18 months)

Injury period – FY 2016-17, 2017-18, 2018-19 and the period of investigation.

Final findings – 25th February, 2021.

Dumping margin, injury margin and proposed duty

The following exporter/producer specific dumping margin, injury margin and proposed duty has been determined by the Designated Authority.

SN Particulars Dumping margin range Injury margin range Proposed duty
1. Qatar
a. Qatar Melamine Company 40-50% 20-40% 337 $/MT
b. Any other 60-70% 40-60% 428 $/MT
2. European Union
a. Any 10-20% 20-40% 156 $/MT
3. Japan
a. Any 10-20% 20-40% 119 $/MT
4. United Arab Emirates
a. Any 10-20% 20-40% 156 $/MT

Key findings

  1. Applicant had facilitated some imports in the years 2016-17, 2017-18 and 2018-19. However, there were no imports in the period of investigation and Authority held that its focus has not turned to imports and it is not behaving like an importer trader.
  2. The fact that applicant had invested more than Rs 800 crores on its new plant was also considered by the Authority as its focus on producing and selling melamine in country.
  3. In order to examine if the applicant had suffered due to Covid-19, the Authority considered average monthly production and sales for pre covid and covid period. It was found that there was no significant impact of Covid-19.
  4. The Authority found that it had suffered volume and price injury due to imports from the subject countries.
  5. Disclosure statement and the computation of the non-injurious price was challenged in the Guwahati High Court by a user. However, the matter was dismissed.
  6. Dumping margin and injury margin are not only positive but also significant in respect of all producers from subject countries.
  7. Duty recommended by Authority are higher in case of responding producers as compared to non-responding countries.
  8. Authority has found that the impact of recommended duties on the end products was negligible.
  9. Authority has found that imposition of duties will be in public interest.