Product description – The product under consideration is Liquid Epoxy Resins.

HS Code – 3907 3010 and 3907 3090

Uses – The product under consideration is used as protective coatings, adhesives, construction and civil engineering, marine and underwater, electrical and electronics and composite applications.

Countries Involved – China PR, Korea RP, Saudi Arabia, Taiwan and Thailand.

Applicants – Atul Limited and Hindusthan Speciality Chemicals Limited

Period of investigation – 1^st January 2023 to 31^st December 2023

Injury period – 2020-21, 2021-22, 2022-23 and the period of investigation

Margins and recommended duties –

Country	Producer	Dumping Margin	Injury Margin	Duty
China PR	Jiangsu Kumho Yangnong Chemical Co., Ltd	10-20%	0-10%	$37 / MT
	Nangtong Xingchen Synthetic Material Co., Ltd.	10-20%	0-10%	$37 / MT
	Any other	20-30%	10-20%	$258 / MT
Korea RP	Kukdo Chemical Co., Ltd.	25-35%	10-20%	$286 / MT
	Kumho P&B Chemicals Inc	15-25%	5-15%	$184 / MT
	Any other	40-50%	25-35%	$483 / MT
Thailand	Aditya Birla Chemicals (Thailand) Limited	0-10%	0-10%	$119 / MT
	Any other	20-30%	10-20%	$331 / MT
Taiwan	Any producer	10-20%	0-10%	$115 / MT
Saudi Arabia	Any producer	15-25%	0-10%	$175 / MT

Key findings – 

1. The application was filed by two domestic producers of the subject goods constituting a major proportion the total eligible production of India.
2. The product under consideration is limited to liquid epoxy resin having CAS Number 25068-38-6 and EU’s REACH regulations CASE Number 1675-54-3, having equivalent weight of LER limited to =< 250 g/eq. It does not include epoxy resins in solid, semi-solid, solution, waterborne form, blended, modified LERs and brominated solvent epoxy resin.
3. The Authority rejected the request of the User’s Association regarding exclusion of grades BE188 and BE188EL in light of the fact that the domestic industry offered like article for these imported grades.
4. The other domestic producer of subject goods namely Grasim Industries Limited had imported significant volumes of the subject goods from its related exporter in Thailand and therefore, was not considered eligible to constitute domestic industry under Rule 2(b).
5. The Authority noted that the dumped imports caused material injury to the domestic industry as can be seen from the following –
   • The volume of imports from the subject countries increased in absolute terms as well as in relation to production and consumption. During the period of investigation, they constituted entirety of the imports.
   • The subject imports depressed the prices of the domestic industry and it was forced to reduce its selling price below its costs.
   • While the market share of the subject countries increased, the market share of Indian industry as a whole and the domestic industry declined over the injury period.
   • The average inventories of the domestic industry increased substantially even when it was selling its product at losses.
   • The domestic industry faced significant losses, cash losses and earned negative returns on its capital employed.
   • The profitability of the domestic industry and its ability to raise investments were also adversely affected due to subject imports.
6. The Authority also noted that the the subject imports are also threatening to cause further injury to the domestic industry considering –
   • Significant increase in volume of subject imports
   • Excessive idle capacities currently held by producers in subject countries
   • Planned capacity expansions by exporters subject in subject countries.
   • Subject imports likely to be diverted to Indian market due to imposition of anti-dumping duties by other major markets such as USA and EU. 
7. The dumping margin and injury margin for all subject countries are positive and significant.
8. Imposition of anti-dumping duties is in the larger public interest considering the following –
   • Imposition of duties on the product under consideration will have a negligible impact on the downstream industry and end consumers.
   • There is a need to protect the huge investment made by the Indian industries to make India self-reliant.
   • The imposition of duty will not restrict the imports of subject goods but only ensure fair prices.
   • The subject goods can be imported from non-subject countries such as European Union, America, Brazil and Japan or can be purchased from the domestic industry or from the subject countries at fair prices. 
   • The subject imports are likely to be further dumped in India considering the subject exporters are facing anti-dumping investigation in USA and EU and that there is oversupply of goods in the subject countries which will be diverted to India.