Product description – The product under consideration is Sulphur Black. The product is produced either powder or liquid form. Without incurring significant additional cost, the product can easily be converted from one form to another form.  The product is also produced in various strengths and is described as BR100, BR 200, BR 220, BR 240. The BR 220 is considered as standard strength.

HS Codes – The product is classified under chapter 32 of the Customs Tariff Act,1975 and imported under 32041967, but the product also imported under various other sub-headings as well, 32041196, 32041218, 32041911, 32041925, 32041958, 32041964, 32041979 and 32049000. The custom classification is only indicative and the same is not binding.

Country Involved – China PR

Applicant – Atul Limited

Date of Initiation – 20^th September 2023

Period of investigation – Applicant has proposed period of investigation as 1^st January 2022 to 31^st December 2022. However, the Authority has considered as 1^st April 2022 to 31^st March 2023.

Injury Period – 2019-20, 2020-21, 2021- 2022 and the period of investigation.

Proposed margin and duty – The Authority recommended a fixed form of anti-dumping duty, and the proposed duty ranged from 275 $/MT to 390 $/MT.        

Producer	Dumping Margin %	Injury Margin %	Duty USD/MT
Shandong Dyeriyarn Ecochem Co., Ltd.	50-60	10-20	279
Any other producers	60-70	10-20	389

Key Findings –

1. The product under consideration is Sulphur Black used primarily in textile, paper and leather industries. The product is produced either in liquid or powdered form.
2. The product under consideration comes under various concentration. However, the Authority has considered BR 220 as equivalent grade.
3. There are nine other producers belonging to the MSME sector, with six of them supporting the investigation. The domestic industry with or without supporter’s accounts for major proportion in the total Indian production.
4. Despite no demand supply gap, the volume of imports increased and was highest during the period of investigation.
5. Although the cost of raw materials increased, the import price declined in the period of investigation. The import price has not changed commensurate with the change in the cost of raw materials.
6. The imports from China PR are undercutting the prices of the domestic industry.
7. The subject imports have taken away the market share of the domestic industry.
8. The domestic industry has faced a steep decline in its profitability, cash profits and return on investment. The applicant is suffering from financial losses and negligible return on capital investment.
9. Imposition of duties might affect the prices of the subject goods, however, none of the users have participated in the investigation.
10. Only the domestic industry submitted quantified information establishing that the impact of the proposed anti-dumping duty on the end users would be negligible.
11. In addition to the domestic industry, other producers in the MSME sector would benefit from the imposition of anti-dumping duty, helping them remain viable in the market.