Initiation of anti-circumvention investigation concerning alleged circumvention of countervailing duty imposed on imports of “Saccharin” from China PR (17.03.2022)

Product description – The product under consideration in the present investigation is “Saccharin in all its forms”.

HS Codes – The product is classified under Chapter 29 the Customs Tariff Act, 1975 under subheading 29251100.

Uses – Sodium saccharin in granular form is used in situations where saccharin will be dissolved, the powder form which has been grounded and spray dried is used in dry mixes and pharmaceuticals.

Countries involved – Thailand

Applicant – M/s Swati Petro Products Private Limited

Period of investigation – April 2021 to March 2021.

Injury period – April 2018 to March 2019, April 2019 to March 2020, April 2020 to March 2021 and the period of investigation.

Past investigations involving the product – A countervailing duty was imposed on imports of “Saccharin” from China vide Final finding F. No. 6/18/2018- DGAD dated 19th June, 2019, which was notified by Notification No. 2/2019-Customs (CVD) dated 30th August, 2019.

Facts of the present case – The present application was filed pursuant to circumvention of existing countervailing duty. The applicant has submitted that there are no known producers of “Saccharin” in Thailand undertaking full- fledged production activities. Exports of “Saccharin” consigned from Thailand to India are substantially manufactured in China claiming the same as goods originating in Thailand. There is change in pattern of trade whereby imports from China have declined and imports from Thailand have increased significantly. The imports of “Saccharin” are prima facie subsidised and are undercutting the prices of the domestic industry.

Consumer sector – The consumers of the product would primarily be diet soft drink, food industry, pharmaceutical Industry etc.