Product description – The product under consideration is PVC Suspension Resins with Residual VCM above 2 PPM manufactured through suspension polymerization technology. The product scope excludes:
- PVC Suspension Resins with Residual VCM below 2 PPM
- Cross-linked Poly Vinyl Chloride
- Chlorinated Poly Vinyl Chloride (CPVC)
- Vinyl Chloride Vinyl Acetate Copolymer (VC-VAc)
- Poly Vinyl Chloride Paste Resin
- Poly Vinyl Chloride Blending Resin
- PVC Suspension produced through bulk mass polymerization
- PVC manufactured through micro suspension polymerization
- Paste PVC Resin
HS Codes – The product is classified under Chapter 39 of the Customs Tariff Act, 1975 and is imported under various codes such 3904 1020, 3901 1090, 3901 3000, 3904 1010, 3904 1090, 3904 2100, 3904 2110, 3904 2200, 3904 4000, 3904 9000, 3904 9010, 3904 9090
Uses – PVC Suspension Resins are used in manufacturing pipes and fittings, flexible hoses, films/sheets, bottles, profiles, wire and cables, footwears etc.
Applicants – Chemplast Cuddalore Vinyls Limited and DCW Limited
Period of investigation – 1st April 2019 to 30th June 2022
Most recent period – 1st January 2022 to 30th June 2022
Unforeseen developments –
- Increase in cost of petrochemical products including VCM leading to increase in cost of production of PVC Suspesnion Resins through VCM route.
- The cost of production of PVC Suspension Resins through coal route did not increase. The Chinese producers are insulated to the global freight rate increase as coal is domestically available to them.
- China has large exportable volume as the consumption of PVC Suspension Resins was impacted in China due to COVID-19 related lockdowns, however, the production remained stable. This lead to disparity between production and consumption in China.
Facts of the present case – The present application was filed pursuant to significant, sharp and sudden increase in imports of PVC Suspension Resins with Residual VCM above 2 PPM due to unforeseen developments. The volume of imports increased in India by 267% in 2021-22 as compared to 2020-21. The price of imports of product under consideration have reduced in the recent period and are at prices below the selling price of the domestic industry. The prices quoted by the exporters for product under consideration are further undercutting the prices of the domestic industry due to which it has been forced to reduce prices. Due to this the profitability of the domestic industry has declined. The increase in volume of imports at lower prices pose further threat of injury to the domestic industry.