Product description – The product under consideration is Phenol. The product is marketed in two forms- bulk (in loose) and packed. Bulk sales are normally in loose form, whereas packed consignments can be of much smaller container loads and generally packed in drums.
HS Codes – 2907.11
Uses – Phenol is used in Phenol Formaldehyde Resins, Laminates, Plywood, Particle Boards, Bisphenol-A, Alkyl Phenols, Pharmaceuticals, Diphenyl oxide etc.
Countries involved – European Union and Singapore.
Applicants – M/s Deepak Phenolics Ltd. and M/s Hindustan Organics Chemical Ltd
Period of investigation – 1st July, 2019 to 30th June, 2020 (12 Months)
Injury period – 2016-17, 2017-18 and April, 2018-June 2019, and the period of investigation.
Past investigations involving the product – This current anti-dumping duty on the imports of subject goods from the subject countries was imposed by the Department of Revenue vide Notification No. 6/2016 – Customs (ADD) dated 8th March, 2016. However, the product under investigation has been subject to multiple anti-dumping investigations in the past. The first investigation against the subject countries was initiated in 2002. An investigation against imports of subject goods from Thailand and USA is ongoing. Recently, the Authority had recommended continuation of anti-dumping duty against imports of Phenol from South Africa.
Facts of the present case –
The present application was filed pursuant to continued dumped imports of Phenol from European Union and Singapore. The applicants demonstrated that the domestic industry has been facing dumping and consequential injury and the prices of the imports are undercutting and depressing the prices of the domestic industry. This has led to the deterioration of performance of the domestic industry in terms of capacity utilization, profits, cash profits and return on investments. The applicants also demonstrated the likelihood of recurrence of dumping and injury to the domestic industry in the event of cessation of the anti-dumping duties. The DGTR found sufficient prima facie evidence of continuation of dumping of subject goods, likelihood of injury to the domestic industry, in the event of cessation of anti-dumping duty, therefore, warranting initiation of the sunset review investigation.