Product description: The product under consideration in the present investigation is “Aceto Acetyl Derivatives of aromatic or heterocyclic compounds” or “Arylides”. The following forms of arylides are included within the scope of the present investigation whilst all other forms are excluded: a. Acetoacetanilide or AAA; b. Acetoacet meta-xylidide or AAMX; c. Acetoacet-o-anisidide or AAOA; d. Acetoacet-O Toluidide or AAOT; e. Acetoacet-O-chloroanilide or AAOCA.

HS Codes: The product under consideration is classified under Chapter 29 of Customs Tariff Act, 1975 under the sub heading 292429.

Country Involved: China PR

Applicant: M/s Laxmi Organic Industries Limited

Period of investigation: 1st October 2024 to 30th September 2025 (12 months)

Injury Period: 2022-23, 2023-24, 2024-25 and POI

Margins and Recommended Duties:

Key Findings:

1. The scope of the product under consideration is unchanged from the original investigation.
2. Imports of the subject goods from China PR increased in absolute terms over the injury period, despite the anti-dumping duty in force
3. The price undercutting is positive and significant. Subject imports have exerted price-depressing and price-suppressing effects on the domestic industry, constraining its ability to increase selling prices in line with its costs.
4. The domestic industry incurred losses from 2023–24 onwards, suffered cash losses and negative return on investment during the period of investigation, and experienced an increase in inventories.
5. The Authority considered that the improvement in certain performance parameters of the domestic industry was attributable to the anti-dumping duty in force.
6. The anti-dumping duty has allowed the domestic industry to survive in the market and has allowed expansion.
7. The landed value of the subject imports during the period of investigation is below the cost of sales of the domestic industry.
8. There is a likelihood of continuation or recurrence of dumping and injury in the event of cessation of the anti-dumping duty, having regard to continued dumping, significant idle capacity in China PR, the price attractiveness of the Indian market and the domestic industry’s continued financial difficulties.
9. India remains an attractive export destination for Chinese producers, and the expiry of anti-dumping duties is likely to result in the diversion of surplus production capacity towards India.
10. The participating producers in China PR possess significant unutilized production capacity. The Authority considered that, upon expiry of the duty, this capacity could be redirected towards India, increasing import volumes and intensifying price pressure on the domestic industry.
11. The impact of the anti-dumping duty on users and downstream industries was negligible. Further, None of the Indian importers or users filed an importer/user questionnaire response.
12. The Authority concluded that continuation of the anti-dumping duty is necessary to address the likelihood of continuation or recurrence of dumping and injury.