Initiation of sunset review investigation of anti-dumping duty imposed on the imports of 2 Ethyl Hexanol (2-EH) originating in or exported from European Union, Indonesia, Korea RP, Malaysia, Taiwan and United States of America.(01.09.2020)

Product description – 2-Ethyl Hexanol (2-EH) is a basic organic chemical and is a fatty alcohol, clear, mobile, neutral liquid with a characteristic odour. The basic raw material for the product is Butyraldehyde.

HS Codes – The HS code prescribed under the Customs Tariff Act, 1975 is 29051620.

Uses – Main application of 2-EH is as a feed stock in the manufacture of low volatility ester; the most important of it is Di-(2Ethyl Hexyl) Phthalate (DOP or DEHP). In numerous applications such as solvents, flavours and fragrances and especially as a precursor for production of other chemicals such as emollients and plasticizers.

Countries involved – Present investigation is a sunset review investigation, so the countries remain same as where in original investigation. European Union, Indonesia, Korea RP, Malaysia, Taiwan and United States of America.

Applicants – The Andhra Petrochemicals Limited

Period of investigation – April 2019 to March 2020.

Injury period – April 2016 – March 2017, April 2017 – March 2018, April 2018 – March 2019 and the period of investigation.

Other investigations involving the product – Original investigation was initiated by the Authority on 20th November 2014. Thereafter, Authority notified final findings on 18th February 2016 recommending definitive antidumping duty. The duty was imposed on the subject goods vide Notification No. 10/2016-Customs (ADD) dated 29th March 2016. The said duties are set to expire on 28th March 2021.

Facts of the present case – The Authority had found prima facie evidence of dumping and consequential injury to the domestic industry on account of increase in imports, decline in production, capacity utilization, sales, market share, price depression leading to reduction in profits, cash profits and return on capital employed. Further, there has been an increase in imports inspite of duties imposed, third country dumping, price attractiveness of the Indian market, injurious exports to other countries, export orientation of the producers in the subject countries, capacity expansion and significant share in demand in India of the imports from the subject countries which prima facie indicate a likelihood of dumping and consequential injury on cessation of the anti-dumping duty.