Final Finding issued recommending imposition of anti-dumping duty on imports of Certain Rubber Chemicals viz., TDQ originating in or exported from China PR, European Union and Russia, PVI originating in or exported from China PR, and CBS originating in or exported from China PR. (30.03.2022)

Product description – The investigation concerns imports of the following Rubber Chemicals, namely:

  1. 2,2,4-trimethyl-1,2-dihydroquinoline or TDQ
  2. N-(cyclohexylthio) pthalimide or PVI
  3. N-cyclohexyl-2-benzothiazolesulfenamide or CBS.

HS Code – 38123100 (TDQ), 3812

Country Involved – China PR, European Union and Russia in respect of imports of TDQ, China PR in respect of imports of PVI and China PR and European Union in respect of imports of CBS.

Date of Initiation – 30th March, 2021

Period of Investigation – October 2019 – September 2020 (12 months)

Injury Period – 2017-18, 2018-19, 2019 –2020 and the period of investigation

Final Findings– 30th March, 2022.

Margins and proposed duty:

Country Producer Dumping Margin % (Range) Injury Margin % (Range) Proposed Duty (US$/DMT)
European Union All producers/exporters 110-120 20-30 416
Russia All producers/exporters 30-40 10-20 219
China PR All producers/exporters 20-30 10-20 231
China PR All producers/exporters 40-50 30-40 1146
China PR All producers/exporters 20-30 10-20 488

Key Findings –

  1. It was noted that since the parent company Huatai exported a significant amount of the subject goods to India and the co-operating producer failed to provide such information, the responding producer and its related exporter were considered non-cooperative.
  2. The covid pandemic cannot be a sufficient justification for dumping and consequent injury to the domestic industry.
  3. It was noted that covid-related shutdown was a force measure situation and cannot justify dumping of the products in India.
  4. It was noted that the adverse performance of domestic industry in the export market is a consequence of dumping of the product in the country.
  5. It was noted that, the performance of the domestic industry has deteriorated in account of various parameters which would not have happened in a monopolistic situation.
  6. The consumer industry did not establish adverse effect of the ADD imposed in the past either in terms of availability of the inputs or their prices. It was noted that the impact of anti-dumping duty on the tyre industry was only 0.04% and 0.17% on the non-tyre industry.
  7. The Authority noted that the overall performance of the products under consideration has declined in terms of profits and return on investments when compared to non-PUC products.
  8. No anti-dumping duty was recommended against producers and exporters of CBS from European Union since the injury margin with respect to imports of CBS originating in or exported from European Union was negative.