Initiation of sunset review regarding anti-dumping duty imposed on the imports of “Normal Butanol” originating in or exported from European Union, Singapore, Malaysia, South Africa and United States of America.(01.09.2020)

Product description – ‘Normal Butanol’ (NBA) is a basic organic chemical and is an excellent solvent for acid-curable lacquers and baking finishes derived from urea, melamine or phenolic resins. The basic raw material for the product is Butyraldehyde.

HS Codes – The HS code prescribed under the Customs Tariff Act, 1975 is 29051300.

Uses – A large part of Normal Butanol is converted into derivatives for use as solvent in coating industries and printing inks. Normal Butanol also finds application as extractant in production of drugs and natural substances, additive in polishes and cleaners, solubilizer in the textile industry, additive in deicing fluids, anti-icing additive in gasoline, humectant for cellulose nitrate, feedstock in the production of glycol ethers and flotation aids (Butyl Xanthate) and as starting material for the production of Butyl mono Carboxylates, Butyl Acetate, Butyl butyrate.

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

Applicant – 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 Authority dated 20th November 2014. The Authority notified final findings on 19th February 2016 recommending definitive antidumping duty which were imposed vide Notification No. 13/2016-Customs (ADD) dated 13th April 2016. The said duties are said to expire on 12th April 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.