TaxTMI 
TaxTMI 
Anti-dumping investigation concerning import of Vitamin C from China PR & Japan — Preliminary findings
X X X X Extracts X X X X
X X X X Extracts X X X X
....ufficient evidence submitted by the petitioner, decided to initiate investigations against alleged dumped imports originating in or exported from Japan and China (hereinafter referred to as the subject countries). The Authority notified the Embassies of the subject countries on receipt of dumping allegation before proceeding to initiate the investigation in accordance with sub-rule 5(5) of the Rules; d. The Authority issued a public notice dated 26-5-1997, published in the Gazette of India, Extraordinary, initiating anti-dumping investigation concerning imports of Vitamin C, originating in or exported from Japan and China. e. The Authority forwarded copy of the public notice to the known exporters/importers (whose details were made available by the petitioner) and gave them an opportunity to make their views known in willing within forty days, in accordance with the Rule 6(2); f. The Authority forwarded copies of the public notice to the known importers of Vitamin C in India and advised them to make their views known in writing within forty days from the date of the letter; g. Request was also made to the Central Board of Exci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....msp;Eros Pharma, Bangalore 10. Fourts (I) Labs Pvt. Ltd., Madras 11. Glaxo India Ltd., Bombay 12. Gracure Pharmaceuticals Ltd., New Delhi 13. Khanna Pharma, Delhi 14. K. Seventilal & Company, Bombay 15. LARK Chemicals & Company, Bombay 16. Lalchand Bhimraj, Bombay 17. Merit Organics Ltd., Bombay 18. Mercury Labs Ltd., Bombay 19. Medley Labs, Bombay 20. Medi Pharma Drug House, Bombay 21. Nemi Pharma Pvt. Ltd., Bombay 22. Puja Enterprises, Bombay 23. Pradip Kumar & Company, Bombay 24. Pharmaceutical India, Bombay 25. Recon Ltd., Bangalore 26. Remidex Pharma P. Ltd., Bangalore 27. Stride Pharma Ltd., New Bombay 28. Sunways Pvt. Ltd., Bombay 29. Taru Enterprises, Bombay 30. Turakha Bros., Bombay 31. T.H. Thakore Pharma Labs, Bombay 32. Tablets India Ltd., Madras m. Information regarding the domestic industry was sought from the petitioners, M/s. Ambalal Sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Food Asia Pte. Ltd., Singapore, a wholly owned subsidiary of Takeda Chemicals Industries Ltd., Japan, are :- - TCI in Osaka have nothing to do with the trade to India; - TVFA was assigned to cover all Asian countries except Korea, Thailand and Japan for sale of Vitamin `C' and food additives manufactured by TCI, Japan; - TCI must be indemnified from charge of dumping and investigation; - Due to continued imbalance in demand and supply of Vitamin C, the prices are tending to fall sharply; - The prices of Vitamin C have been falling steadily since 1995 and their prices have always been in tune with the international prices. - The total demand for Vitamin C is more than that produced locally; - China has emerged as a largest supplier of Vitamin C in the world market; - In case the domestic industry feels that there is dumping of Vitamin C, they should be in a position to export the material at prices higher than that prevailing in international market, to prove their claim; 2. M/s. Hebei Welcome Pharma Co., China M/s. Hebei Welcome Pharma Co., China have attached some invoices pertaining to exports to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uct under consideration. The petitioners have claimed that the basic manufacturing process of this product in the domestic industry in India is also almost the same as that of the foreign producers. The Vitamin C produced and sold by the domestic industry is, therefore, considered as like article to the Vitamin C imported from the subject countries within the meaning of Rule 2(d). G. Domestic industry 7. The petition has been filed by M/s. Ambalal Sarabhai Enterprises Ltd. on behalf of the domestic industry. The petitioners having produced 344 MT account for around 76% of the total production of 454 MT during the period of investigation. M/s. Jayant Vitamins Ltd., who also manufacture Vitamin C have produced only 110 MT during April-September, 1996 have however, closed down their plant in September, 1996 and are non-petitioners. Being the only producer of Vitamin C in the country, the petitioner constitute domestic industry in accordance with Rule 2(b) supra. H. Normal value 8. The Authority had sent the questionnaires to the exporters to furnish information so that Normal Value could be worked. M/s. TCI, Japan have not submitted any information dire....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d supporting documentary evidence regarding their domestic sale for the period of investigation and have not claimed any adjustments for the domestic price. Hence, normal value has been assessed based on the constructed cost of production of Vitamin C in the country of origin along with reasonable addition for administrative, selling and general costs and profits as determined in accordance with the Rules made under sub-section (6). I. Export Price 9. The petitioner has submitted copy of Chemical Weekly for the period of investigation to show the export price of the product from Japan and China. The Authority has, however, relied upon Government Statistics available for the period April-December, 1996, from DGCI & S, Calcutta. The CIF prices works out to Rs. 319.89/ kg. for Japan and Rs. 296.26/ kg. for China. M/s. TVFA has furnished adjustments "after FOB price" for overseas freight, insurance, shipping charges, handling etc. The Authority has allowed adjustments on the basis of the claims made by TVFA. Similarly, the adjustments in respect of overseas freight (from Xingang to Mumbai), and clearance charge as furnished by the Chinese Exporter have been allowed t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he impact of imports on the domestic industry in India, the Authority has considered such indices having a bearing on the state of the industry as production, capacity utilisation, sales quantum, stock, profitability, net sales realisation, the magnitude and margin of dumping etc. in accordance with Annexure II(iv) of the rules supra. (a) Volume of dumped imports Imports from China increased from 44.8 MT (1994-95) to 59.7 MT (1995-96) and were 294 MT (392 MT on annualised basis) during the investigation period (April-December, 1996) and in case of Japan imports increased from zero level (1994-95) to 0.7 MT (1995-96) and upto 101.06 MT (135 MT on annualised basis) in the investigation period. The percentage increase in import of the product during the year 1996-97 (Annualised) is around 656% in respect of China & 19668% in respect of Japan. The above trend would reveal that there is significant increase in the volume of imports from the said countries. The market share of Japan in the total demand in the country increased from 0.08% in 1995-96 to 10.61% during the period of investigation. In case of China, increase was from 6.49% in 1995-96 to 29.41% during the period ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... increase in stocks. (c) Profit/Loss M/s. Ambalal Sarabhai Enterprises is a multi-product company. Audited Balance Sheet of the company as whole show that there is a steep decline in profits. The company which registered a profit of Rs. 1007.25 lakhs during 1994-95, declined to Rs. 430.51 lakhs during 1995-96. The operating results for only Vitamin C, which registered a profit of Rs. 252.65 lakhs during 1994-95 declined to Rs. 131.52 lakhs during 1995-96 and posted loss of Rs. 93.98 lakhs during the period of investigation. Further, the cost of production increased from Rs. 533.20/ kg. during 1995-96 to Rs. 562.68/ kg. during the period of investigation. 12. Authority notes from the foregoing that : i. The imports from the subject countries have increased in absolute terms; ii. The exporters entered into contracts for supplies of Vitamin C at increasingly lower rates for deliveries to be made in the subsequent months. This forced the Indian Industry to drastically cut down their production resulting in increase in cost of production. This has also eroded the profitability of the domestic industry; iii. The imports from th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The Authority notes that the imposition of anti-dumping measures would not restrict imports from the subject countries in any way, and, therefore, would not affect the availability of the product to the consumers. 16. To ascertain the extent of anti-dumping duty necessary to remove the injury to the domestic industry, the Authority has relied upon reasonable selling price of Vitamin C in India for the domestic industry, by considering the optimum cost of production and reasonable profit for the domestic industry. 17. The import duty imposed by the Government of India has relevance in determination of the extent of injury suffered by the domestic industry and has been accordingly taken care of. Conclusions 18. The Authority concludes, after considering the foregoing, that : i. Vitamin C originating in or exported from Japan and China has been exported to India below its normal value, resulting in dumping; ii. Imports of Vitamin C from these countries have caused material injury to the domestic industry. iii. It was considered whether a duty lower than the dumping margin would be sufficient to remove the injury. Th....