Product description: The product under consideration is Ethylene Diamine (EDA).

HS Code: The product is classified under Chapter 29 of the Custom Tariff Act, 1975 and is imported under 29212100.

Countries involved: China PR, European Union, Kingdom of Saudi Arabia and Taiwan.

Applicant: Balaji Speciality Chemicals Limited.

Date of Initiation: 25th March 2025

Period of Investigation: 1st October 2023 to 30th September 2024 (12 months)

Injury period: 2021-22, 2022-23, 2023-24 and the period of investigation.

Margins and recommended duties:

Key Findings:

1. The product under consideration is Ethylene Diamine (EDA), classified under HS Code 2921 21 00. EDA is primarily used in the manufacture of specialty chemicals, fungicides, agrochemicals, coatings, and polymers.
2. Requests for user-based exclusion were not accepted, as the domestic industry demonstrated its ability to meet the technical specifications required by spandex yarn manufacturers and was already supplying the product to other users.
3. Balaji Speciality Chemicals Limited is the sole producer of EDA in India and qualifies as the domestic industry under the Anti-Dumping Rules.
4. China PR was treated as a non-market economy. As no producer or exporter claimed market economy status, the normal value was constructed based on the cost of production in India.
5. For Sadara Chemical Company (Saudi Arabia), the normal value was determined on the basis of the company’s reported cost of production.
6. The investigation established that EDA imports from the subject countries were being dumped into India. The dumping margins were found to be positive and above the de-minimis threshold.
7. Imports from the subject countries increased during the injury period, both in absolute terms and relative to domestic consumption and production.
8. Import prices from the subject countries did not move in line with raw material prices and declined at a greater rate than the decline in raw material costs.
9. The imported product undercut the domestic industry’s prices and exerted downward pressure on domestic selling prices, resulting in price depression.
10. The domestic industry suffered financial injury, including financial losses, cash losses, and a negative return on capital employed during the period of investigation.
11. Dumped imports adversely affected the domestic industry’s ability to undertake further investments and expand production capacity.
12. No other factors have caused injury to the domestic industry.
13. EDA constitutes only a small proportion of the cost of downstream products, therefore, the impact of anti-dumping duties on end-product prices is expected to be limited.
14. The Authority recommended anti-dumping duty for the period of 5 years.