Preliminary findings issued recommending imposition of anti-dumping duty against imports of phenol from Thailand and United States of America. (20.08.2020)

Product description – The product under consideration is Phenol imported from Thailand and United States of America (USA)

HS Codes – The product is classified under Customs Tariff heading no. 2907.11

Uses –Phenol is used in Phenol Formaldehyde Resins, Laminates, Plywood, Particle Boards, Bisphenol-A, Alkyl Phenols, Pharmaceuticals, Diphenyl Oxide, etc.

Countries involved – Thailand and USA

Applicants Deepak Phenolics Ltd., Hindustan Organics Chemicals Ltd. and SI Group India Pvt. Ltd.,

Date of initiation – 25-02-2020

Period of investigation – 1st July 2019 to 31st December 2019

Injury period – 2016-17, 2017-18, April 2018- June 2019 and the period of investigation.

Dumping margin, Injury Margin & Proposed Duty – The following exporter specific dumping margin, injury margin and proposed duty has been determined by the Designated Authority:

Producer Dumping margin Range Injury Margin Range Proposed Duty (US$/MT)
Thailand – PTT Phenol Company Limited 0-10 0-10 989.36
Thailand – Any other exporters 10-20 10-20 992.58
USA 10-20 0-10 1006.96

Key findings –

  1. Principal factor affecting the domestic prices is the dumped imports of subject goods from the subject countries.
  2. The existence of material injury was evidenced by increase in volume of imports, positive price underselling, price suppression, price depression and significant deterioration in profits, cash profits and return on capital employed.
  3. There exists a causal link between the dumping of subject goods and injury to the domestic industry.
  4. The imposition of the antidumping measures would not restrict imports from the subject countries in any way, and therefore, would not affect the availability of the product to the consumers.