Initiation of sunset review investigation concerning imports of “Toluene Di-isocyanate” (TDI) originating in or exported from China PR, Japan and Korea RP. (27.08.2021)

Product under consideration – Toluene di-isocyanate (TDI) is an organic compound with the formula CH3C6H3 (NCO)2. Two of the six possible isomers are commercially important: 2,4-TDI (CAS: 584-84-9) and 2,6-TDI (CAS: 91- 08-7). 2,4-TDI is produced in the pure state, but TDI is often marketed as 80/20 and 65/35 mixtures of the 2,4 and 2,6 isomers respectively. The PUC in the present investigation concerns TDI having isomer content in the ratio of (80:20) and any other grades are beyond the scope of product under consideration.

HS Code – 2929 10 20

Uses – TDI is an organic chemical used for production of Flexible Polyurethane Foam, Furniture cushion, Industrial Gaskets, Protective pads for Sports & Medical use, Automobiles: Seats, Furniture, Lining, Sun visors etc, Packing: Electronic items, Frozen Foods, Medicines, Audio-video Computer CD’s etc.

Countries involved – China PR, Japan and Korea RP.

Applicant – Gujarat Narmada Valley Fertilizers & Chemicals Limited.

Period of investigation – 1st April 2020 to 31st March, 2021 (12 months)

Injury period – 2017-18, 2018-19 and 2019-20 and the period of investigation.

Past investigations involving the product – The original anti-dumping duties on imports of the product from China PR, Japan and Korea RP was imposed in 2017. Mid-Term Review limited to change the name of a producer from Korea was notified on 29th October 2020.

Facts of the present case –The Authority also found prima facie evidence that product under consideration has been exported from subject countries at dumped prices, and consequential injury to domestic industry on account of significant imports, price undercutting, decline in production, capacity utilization, sales and market share and price effect leading to reduction in profits, cash profits and return on capital employed. Further, the Authority also examined likelihood of injury on account of third countries dumping, price attractiveness of the Indian market, injurious exports to other countries, export orientation of the producers in the subject countries, etc. and found that there is prima facie evidence of likelihood of continuation/recurrence of dumping from China PR, Japan and Korea RP and injury on cessation of duties.