Sunset Review investigation concerning imports of ‘Methyl Acetoacetate’ originating in or exported from China PR (03.05.2021)

Product description – The product under consideration (PUC) is “Methyl Acetoacetate”. It is also known as MAA/MAAE/AAME and is a Diketene based Ester or aceto-acetate. The chemical formula of MAA is C5H8O3 and at 99% purity, it is a clear liquid with a colourless appearance.

HS Codes – The product is classified under customs classification 29183040. However, the product has been imported under various other codes such as 29146990, 29153910, 29153940, 29153990, 29183090, 29331990, 29410090 and 29189900. The customs classification is indicative only and in no way binding on the scope of the present investigation.

Uses – Methyl Acetoacetate finds uses in Pharmaceutical Industry, Agrochemical Industry, Polymer Industry, as a reactant in other industries. It is also used as a flavouring agent and in colourants.

Countries involved – China PR

Applicant – Laxmi Organics Industries Limited

Date of Initiation – 30th September, 2020

Period of Investigation – 1st April 2019 to 31st March, 2020 (12 months)

Injury Period – 2016-17, 2017-18, 2018 –19 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. 

Country Producer Dumping Margin Range Injury Margin Range Proposed Duty
China PR Nantong Acetic Acid Chemical Co., Ltd. 20-30 10-20 0.277 US$/Kg
  Others 30-40 10-20 0.404 US$/Kg

Key findings –

  1. Imports in relative terms remains significant despite existing anti-dumping duty.
  2. Imports from the subject country have not caused any price suppressing or depressing effect on the prices of the domestic industry but price undercutting effect without adding the existing anti-dumping duty is positive.
  3. The dumping margins and Injury margins are positive and above de-minimis.
  4. The Authority concluded that significant rate of increase of dumped imports into India, sufficient freely disposable capacity of the exporters, declining present and potential growth in Chinese domestic demand, positive price undercutting during the POI etc. points towards likelihood of continuation or recurrence of dumping or injury in the event of expiry of present anti-dumping duty.