Product description – Beta Naphthol also known as 2-Naphthol or β-Naphthol having chemical formula C₁₀H₈O.

HS Codes –2907 1520 and 2907 1510.

Uses – Beta Naphthol is used in making dyes, pigments and its intermediates. It is also used to make fats, oils, insecticides, pharmaceuticals, perfumes, antiseptics, fungicides. It also finds application as antioxidants for rubber; lubrication of steam turbines, electric motors, hydraulic equipment. It is also used as additive in electroplating, developer in dyeing and printing of fabrics, in tanneries and in the paints-lacquers-varnishes industry.

Subject Country – China

Domestic industry – Bodal Chemicals Limited

Period of Investigation – 1^st October 2023 to 30^th September 2024

Injury period – 1^st April 2021 – 31^st March 2022, 1^st April 2022 – 31^st March 2023, 1^st April 2023 – 31^st March 2024 and the period of investigation

Margins and recommended duties –

Key Findings –

1. The product under consideration is Beta Naphthol, originating in or exported from China.
2. The product produced by the domestic industry is a like article to the product imported from the subject country.
3. The domestic industry constitutes a major proportion of the total domestic production.
4. Imports by the applicant are made under advance authorization and are negligible in relation to production, subject imports and demand. Thus, the applicant has been considered eligible to constitute the domestic industry.
5. The dumping margin and injury margin is positive and significant.
6. The domestic industry has suffered material injury due to dumped imports from China during the period of investigation.
7. The volume of subject imports has increased in relative terms.
8. The subject imports have undercut the prices of the domestic industry.
9. The domestic industry was unable to increase its selling price with an increase in cost of sales due to the decline in landed price.
10. The subject imports have suppressed and depressed the prices of the domestic industry in the injury period.
11. The subject imports were priced below the cost of sales and selling price of the domestic industry.
12. The domestic industry was operating at significantly underutilized capacities despite demand in the market.
13. Subject imports dominate the market share in India. The market share of the domestic industry remained low even though it had the capacity to cater to 86% of demand in the country.
14. The domestic industry suffered losses throughout the injury period except the base year. The losses inclined steeply during the period of investigation.
15. The domestic industry has also incurred cash losses and recorded a negative return on investment in the injury period.
16. Imposition of anti-dumping duty is in public interest and would provide a level playing field to Indian Industry in the market
17. Impact of imposition of anti-dumping duty will be negligible on downstream users.
18. There would be no adverse impact on exports of downstream products, as the product can be imported duty-free under advance license, avoiding anti-dumping duty.
19. Request to exclude the pharmaceuticals industry from the scope of imposition of duty was not accepted.