Product description – Caustic Soda or sodium hydroxide, in all forms.
HS Codes – 2815 1110, 2815 1190 and 2815 1200
Uses – Caustic soda is used as a raw material or as an auxiliary chemical in diverse industrial sectors such as pulp and paper, newsprint, viscose yarn and fibre, aluminium, cotton, textiles, soaps, detergent, dyestuff, pharmaceuticals, etc.
Countries involved – Japan, Iran, Qatar and Oman
Applicant – Alkali Manufacturers Association of India (AMAI) on behalf of its members, with DCW Limited, Grasim Industries Limited, Gujarat Alkalies and Chemicals Limited and SIEL Chemical Complex constituting domestic industry
Date of Initiation – 17th December 2020
Period of Investigation – 1st October 2019 to 30th September 2020
Injury Period – 2017-18, 2018 –19 and 2019-20 and the period of investigation
Margins and proposed duty –
Country | Producers | Dumping Margin (Range) | Injury Margin (Range) | Proposed Duty (US$/DMT) |
AGC Inc. | 70-80 | 0-10 | 14.46 | |
Hokkaido Soda Co. Limited | 70-80 | 0-10 | 14.46 | |
Japan | Tosoh Corporation | 70-80 | 0-10 | 24.60 |
Tohoku Tosoh Chemical Co. Limited | 70-80 | 0-10 | 24.60 | |
Kashima Chlorine and Alkali Co. Limited | 70-80 | 0-10 | 11.82 | |
Shin-Etsu Chemical Co. Limited | 70-80 | 0-10 | 11.82 | |
Any other producer and exporter | 140-150 | 25-35 | 88.61 | |
Iran | Any producer and exporter | 80-90 | 20-30 | 72.24 |
Oman | Any producer and exporter | 70-80 | 15-25 | 66.44 |
Qatar | Qatar Vinyl Company Limited Q.P.J.S.C | 20-30 | 0-10 | 8.32 |
Any other producer and exporter | 30-40 | 0-10 | 20.09 |
Key Findings-
- The scope of product under consideration includes caustic soda lye and caustic soda solids, including flakes, prills and granules, which are just different forms of the same product.
- The Authority noted that in light of significant production and sales, long-term commitment to domestic production and low volume of imports, Grasim Industries cannot be excluded from the scope of domestic industry by virtue of imports by a separate business segment.
- It was noted that since declaration of imports at the time of initiation would not merit exclusion of Grasim Industries from the scope of domestic industry based on facts, disclosure at a later stage would not have any adverse implications.
- In absence of any legal or operational control between Grasim Industries and Hindalco Industries, mere shareholding of less than 5% cannot be considered for determining relationship between Grasim Industries and Hindalco Industries and by extension, its subsidiary Utkal Alumina Limited.
- The definition of related party in relation to domestic industry under Rule 2(b) is different than the definition of related party in relation to foreign producers / exporters under Trade Notice 9/2018 and the same cannot be applicable interchangeably.
- The Authority noted that the responding producer from Iran under-reported their imports and considered imports made under the BIS license issued to the responding producer as imports made from Iran.
- It was noted that the period of investigation is not required to be determined in a manner to eliminate any injury suffered due to other factor during such period, such as Covid-19.
- The Authority rejected the questionnaire response filed by Arvand Petrochemicals from Iran due to delay in filing response as well as significant deficiency and inconsistency in the response. The normal value and export price was accordingly determined based on fats available.
- It was noted that injury examination is to be carried out for domestic industry as whole and not for an individual constituent of the domestic industry and thus, the performance of only one producer is irrelevant.
- Participation of users allows them to provide information regarding the impact of duties on their operation and in absence of such participation, the Authority will determine impact on public interest based on information available before it.