Initiation of Sunset review investigation concerning imports of Methylene Chloride, from China PR (31.08.2020)

Product description – The product under consideration in this investigation is Methylene Chloride, also known as Dichloromethane or Methyl Dichloride.  

HS Codes – The product under consideration is classified under Chapter 29 of the Customs Tariff Act under customs subheading 29031200. The Customs classification is, however, indicative only and in no way binding on the scope of the present investigation.

Uses –MDC is a solvent and is used in the manufacturing of polycarbonate and phenolic resins, rayon yarn, pharmaceuticals, agro and fragrance. It is also used as an extractant for edible fats, cocoa, butter and essences

Countries involved – China PR

Applicants –  M/s Gujarat Fluorochemicals Ltd., TGV SRAAC Ltd and M/s Chemplast Sanmar Ltd.

Period of investigation – April 2019 to March 2020

Injury period –2016-2017, 2017-2018, 2018-2019 and 2019-20 (POI)  

Past investigations involving the product – imports of product under consideration from USA and EU are already attracting anti-dumping duty

Facts of the present case – Imports have increased both in absolute as well as in relation to production and consumption. Imports are undercutting the domestic prices and have depressing effect on the domestic prices. Such significant increase in import has impacted the profit parameters of the domestic industry and the domestic industry’s profits, PBIT and ROI shows declining trend. Also, there are very strong likelihood evidences which shows that there will be recurrence of injury in case cessation of anti-dumping duty. Consumer sector – sectors related to rayon yarn, pharmaceuticals, agro, fragrance etc.