Product description – The product under consideration is 1-(3,5,5,6,8,8-hexamethyl-6,7-dihydronaphthalen-2-yl) ethenone having chemical formula C₁₈H₂₆O. molecular weight of 258.40 g/mol and CAS 21145-77-7 and 1506-02-1. The product is sold under various brand names including Tonalide, Tonalid, Muscofix, Ganolid, Fixolide, AHTN, Musk Tetralin, Ultramusk, Lanolid, Musk Tetralin, Dernalide, Methyl Nonyl Acetophenone, Kevolid, Tentarome and Tetralide.

HS Code – 2914 3990

Uses – The product is used as a base note fixative and volume enhancer in fragrances and functional perfumery.

Countries Involved – China PR

Applicant – Keva Fragrances Private Limited

Period of investigation – 1^st October 2024 – 30^th September 2025

Injury period – 2022-23, 2023-24, 2024-25 and the period of investigation

Margin and recommended interim duties –

Key findings –

1. The application was filed seeking imposition of duties on imports of subject goods from China PR. However, no interested party has participated and cooperated in the present investigation.
2. The applicant is the sole producer of subject goods in the country and constitutes the domestic industry as defined under Rule 2(b).
3. The Authority has preliminary noted that the dumped imports have caused material injury to the domestic industry.
4. The volume of imports increased in absolute terms and in relation to total Indian production and consumption over the injury period. While the volume of subject imports declined in the period of investigation as compared to 2023-24, the subject imports were still significant despite no demand-supply gap in the country.
5. The landed price declined over the injury period at a rate higher than decline in raw material cost. Such prices were even below the cost of sales of the domestic industry, forcing it to reduce its prices below cost.
6. The subject imports have undercut and depressed the prices of the domestic industry.
7. While the market share of the domestic industry has declined, the market share of the subject imports has increased over the injury period resulting in significant accumulation of inventories of the domestic industry.
8. As a result, the domestic industry faced significant accumulation of inventories.
9. The domestic industry suffered significant losses, cash losses and recorded a negative return on its capital employed.
10. The Authority noted that the subject imports adversely impacted the ability of the domestic industry to raise any further capital investments.
11. Imposition of duties will be in the interest of the public at large. The product constitutes a negligible share in the total cost of end-product as it is used in small quantities to make fragrances, which are in turn used in small quantities to produce the end-product. Thus, any increase in costs due to the imposition of duties will have an insignificant impact on the downstream users and end-consumers.