Product Description: Saccharin in all its forms. Saccharin is a non-nutritive sweetener and is considered to be a low calories substitute for sugar. Saccharin is used in a variety of industries such as food and beverage, personal care products, tabletop sweeteners, electroplating brighteners, pharmaceuticals, etc.

HS Code: 29251100

Country Involved: China PR

Applicants: M/s. Blue Jet Healthcare Ltd. and M/s. Swati Petro Products Pvt. Ltd.

Date of Initiation: 26^th March 2023

Period of Investigation: 1^st October 2022- 30^th September 2023

Injury Period: 2020-21, 2021-22, 2022-23, POI

Proposed Margin and Duty: The Authority recommended continuing the percentage form of countervailing duty at 20%.

S.No.	Tariff Item	Description of Goods	Country of Origin/Export	Producer	Duty amount as % of CIF Value
(1)	(2)	(3)	(4)	(5)	(6)
1.	2925 11 00	Saccharin in all its forms	China	Any	20%

Key Findings:

1. The product under consideration is “Saccharin in all its forms” as defined in the original investigation, including saccharin salt or salt of saccharin, which falls within the product under consideration.
2. The Authority noted that the Government of China had neither disputed the continuation of these schemes nor provided information to challenge previous conclusions about them.
3. The Authority relied on prior investigations and current records to evaluate the ongoing countervailability of the schemes identified in the original investigation.
4. After examining relevant documents and provisions, the Authority concluded that the schemes in question continued to benefit Chinese exporters. Due to the Chinese Government’s non-cooperation, the Authority assumed the benefit level remained unchanged from the original investigation.
5. Regarding the 34 new schemes alleged by the domestic industry, the Authority observed that the Chinese Government and exporters failed to provide information to counter these claims. Given that the original countervailing duty margin was significantly higher than the injury margin in the current investigation, the Authority deemed it unnecessary to examine the new schemes.
6. The original countervailing duty margin was higher than the newly determined injury margin, making further CVD margin quantification unnecessary.
7. Demand for the product increased from the base year 2021-22, declined in 2022-23, and then rose again during the investigation period.
8. Imports from the subject country decreased in 2021-22 due to circumvention through Thailand but still dominated overall imports into India.
9. The Authority highlighted that, without existing CVD, imports were likely to cause significant price undercutting and suppress domestic industry prices.
10. The domestic industry’s capacity remained constant, with production and capacity utilization rising in 2021-22, then falling in 2022-23 and the investigation period. Domestic sales showed a similar trend, with a slight increase during the investigation, while export sales grew until 2022-23 and then declined.
11. The market share of subject imports fell in 2021-22 due to circumvention through Thailand but increased significantly in 2022-23 and the investigation period, reducing the domestic industry’s share despite declines in non-subject imports.
12. The domestic industry experienced losses in 2021-22 due to circumvention through Thailand. Losses decreased after duties were extended to Thai imports in 2022-23 but increased again during the investigation period. Profitability was expected to deteriorate further if the CVD was removed.
13. The average inventory of the domestic industry significantly increased during the injury period.
14. The domestic industry’s growth was negative when considering volume and price parameters.
15. Likelihood of injury if duties were discontinued was evidenced by various factors such as significant increases in imports during the investigation period, continued subsidisation, etc.
16. Significant price undercutting and increased demand in the Indian market were likely if the countervailing duties were ended, as established by evidence showing two Chinese exporters having more capacity than total Indian demand, China’s total exports being significantly higher than Indian demand, and a high percentage of Chinese exports at injurious prices.
17. The purpose of countervailing duties was to eliminate injury caused by unfair trade practices and restore fair competition in the Indian market, ensuring a level playing field rather than restricting imports.
18. Impact of duties on the consumers is miniscule.