Product description – The product under consideration is Pentaerythritol. It is an Organic compound having formula C5-H12-O4, which is used in manufacturing of derivatives, and finds its application in paint, varnishes and other surface coating industries.

HS Codes – 2905.42.90.

Country Involved – China PR, Saudi Arabia and Taiwan.

Applicants – M/s Kanoria Chemicals & Industries Ltd.

Date of Initiation – 12^th May 2023

Period of investigation – 1^st July 2022 to 31^st March 2023.

Injury Period – 2019-20, 2020-21, April 2021- June 2022 and POI.

Past investigations involving the product –

1. Anti-dumping duty on imports of Pentaerythritol from China and Sweden were recommended vide Notification No. 14/16/2004-DGAD, dated 2^nd Feb 2006. These were levied by the Ministry of Finance vide Customs Notification dated 20^th April 2006.
   • The duties were continued, on China and Sweden, vide Notification dated 14^th June 2011, based on the recommendations made pursuant to first sunset review vide notification no. 15/3/2010-DGAD dated 25^th March 2011.
   • The duties were continued, on China, vide Notification dated 29^th June 2017, based on the recommendations made pursuant to second sunset review vide notification no. 15/1/2016-DGAD dated 12^th May 2017.
2. Anti-dumping duty on imports of Pentaerythritol from Taiwan, Japan and Canada were recommended vide Notification No. 48/1/2001-DGAD, dated 8^th Oct 2002. These were levied by the Ministry of Finance vide Customs Notification dated 31^st Oct 2002.
   • The duties were continued, on Taiwan and Japan, vide Notification dated 28^th Apr 2008, based on the recommendations made pursuant to first sunset review vide notification no. 15/7/2006-DGAD dated 5^th March 2008.
   • The duties were revised on Taiwan, vide Notification dated 12^th Aug 2011, based on the recommendations made pursuant to a mid-term review vide notification no. 15/10/2010-DGAD dated 17^th June 2011.
   • The duties were continued on Taiwan, vide Notification dated 31^st Dec 2014, based on the recommendations made pursuant to second sunset review vide notification no. 15/19/2012-DGAD dated 16^th Oct 2014.
3. Anti-dumping investigation on imports of Pentaerythritol from Saudi Arabia was initiated vide Notification No. 14/11/2011-DGAD, dated 22^nd May 2012. However, this investigation was terminated on 8^th Nov 2013.

Key Findings –

1. The scope of the product under consideration is “Pentaerythritol” originating in or exported from China PR, Saudi Arabia and Taiwan. The price difference between technical and nitration grade is insignificant.
2. Demand declined in 2020-21 due to COVID, and then increased in the preceding year. However, demand again declined in the POI, and therefore, there has been an overall decline in demand.
3. The Indian industry benefitted due to ADD and fair competition in India as it, resulted in a new producer the Indian market. Ensuring that new investment is made, and Indian producers become sufficient to cater to entirety of demand. However, with cessation of duties in June 2022, the new producer, stated that upon commencing production, if the current prices would prevail, it would  suffer adverse impact on its profitability, low utilisation, higher fixed costs in short and medium term, that will impact employment and exports.
4. The volume of imports in India has increased in the POI increased in the POI, and that of other countries declined.
5. Due to significant fluctuations in the import prices and raw material prices during the POI, quantification of both dumping and injury margin has been undertaken on quarterly basis. Resultantly, the dumping margin is not only above de-minimis level but also significant.
6. There was a steep decline in the import price within the POI, leading to significant decline in the selling price of the domestic industry.
7. The production, capacity utilisation and domestic sales volume were maintained, in view of the nature of the product, and, as the domestic industry took frequent and steep price corrections in order to maintain sales.
8. In order not to lose market and to keep the production running, the domestic industry had no other option but to follow the price levels set by the dumped imports. This resulted in the significant drop in profitability in the POI.
9. The imposition of duty would be in public interest, since none of the parties responded to the Economic Interest Questionnaire, considering past imposition of duties and current assessment, duties did not have any adverse impact on consumers.