2016 (10) TMI 129 - AT - Customs

Tribunal Upheld Anti-Dumping Duty Extension in Subset Review

M/s Hubei Hongyuan Pharmaceutical Co. Ltd. Versus Designated Authority, DGAD MoF

M/s Hubei Hongyuan Pharmaceutical Co. Ltd. Versus Designated Authority, DGAD MoF - 2016 (342) E.L.T. 259 (Tri. - Del.) Issues:1. Challenge against the extension of anti-dumping duty in subset review.2. Contention regarding termination of investigation due to domestic industry being a major importer.3. Incorrect calculation of injury margin due to wrong DPCO price.4. Lack of causal link for likelihood of dumping/injury in case of AD duty revocation.Analysis:1. The appeal challenged the extension of anti-dumping duty recommended by the Designated Authority (DA) in the subset review. The DA initiated a sunset review investigation based on applications by specific companies. The appellant contested the findings of the DA on various grounds, including the termination of the investigation due to the domestic industry being a major importer. However, the DA excluded one company from the domestic industry, concluding that the remaining producer satisfied the requirements. The Tribunal cited a previous judgment to support this decision, emphasizing that even a producer with a small market share can be considered part of the domestic industry. The Tribunal found no merit in the appellant's argument on this issue.2. The appellant raised concerns about the incorrect calculation of the injury margin by using the wrong Drugs Price Control Order (DPCO) price. The Tribunal noted that the government had set specific prices for the subject goods during relevant periods, and the DA correctly applied these prices in its calculations. The Tribunal found that the DA's approach to determining the injury margin was in line with the applicable regulations and notifications, dismissing the appellant's contention on this point.3. Another issue raised was the lack of a causal link between dumping/injury and the potential revocation of the anti-dumping duties. The appellant argued that there was no evidence to support the likelihood of dumping or injury if the duties were removed. However, the Tribunal observed that Chinese producers continued to export goods at dumped prices despite the imposition of anti-dumping duties. The DA's analysis indicated a significant dumping margin, with a strong possibility of intensified dumping if the duties were revoked. The Tribunal found the DA's findings well-reasoned, supported by clear data and analysis, and concluded that there was a strong likelihood of Chinese producers meeting the entire Indian demand through dumping. Therefore, the Tribunal upheld the DA's decision on this issue.In conclusion, after thorough examination and analysis of all arguments and evidence presented, the Tribunal found that the appeal lacked merit and dismissed it accordingly. The judgment was pronounced on 31.08.2016.