Century, JK Paper, Emami, ITC, and TNPL provide information to initiate an anti-dumping investigation into virgin multilayer paperboard by the government

Century, JK Paper, Emami, ITC, and TNPL provide information to initiate an anti-dumping investigation into virgin multilayer paperboard by the government

-The Indian Paper Manufacturers Association (IPMA) has alleged that material injury is being caused to the domestic industry due to dumped imports of virgin multilayer paperboard originating in or exported from Chile and China PR.
-IPMA has proposed April 1, 2023, to March 31, 2024, as the period of investigation

The Pup and Paper Times | 17th October 24

The Ministry of Commerce and Industry, Department of Commerce (Directorate General of Trade Remedies), has initiated an anti-dumping investigation into imports of virgin multilayer paperboard from Chile and China PR. The Indian Paper Manufacturers Association (IPMA) has alleged that material injury is being caused to the domestic industry due to dumped imports of virgin multilayer paperboard originating in or exported from Chile and China PR, and has requested the imposition of anti-dumping duty on the imports of the product under consideration from the subject countries.

IPMA has filed an application on behalf of the domestic industry before the Designated Authority in accordance with the Customs Tariff Act 1975, as amended, and Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, as amended, for the initiation of an anti-dumping investigation concerning imports of virgin multilayer paperboard originating in or exported from Chile and China PR.

The product under consideration is classified under Chapter 48 of the Customs Tariff Act, 1975, under the headings 4805 and 4810. It is also being imported under the ITC HS Codes 4805 91 00, 4805 92 00, 4805 93 00, 4810 92 00, and 4810 99 00.

The information provided by IPMA regarding various parameters has been considered for assessing injury to the domestic industry. IPMA has provided information on the injury suffered by the domestic industry due to dumped imports. There has been a significant increase in imports from Chile and China PR, both in absolute and relative terms, at prices below the cost of sales for the domestic industry.

IPMA has claimed that these imports have suppressed and depressed the prices of the domestic industry, negatively impacting profitability. The financial profits and cash profits of the domestic industry have declined over the injury period, resulting in a low return on capital employed. The market share of the subject imports has doubled, while that of the domestic industry has declined, despite the domestic industry competing with low import prices and compromising its profitability. There is sufficient prima facie evidence of material injury being caused to the domestic industry by the dumped imports.

The application has been filed by the Indian Paper Manufacturers Association on behalf of the domestic industry. Century Textiles and Industries Limited, Emami Paper Mills Limited, ITC Limited, JK Paper Limited, and Tamil Nadu Newsprint and Papers Limited are domestic producers of virgin multilayer paperboard in India and have provided information for the present investigation.

IPMA has proposed April 1, 2023, to March 31, 2024, as the period of investigation. The injury investigation period will cover 2020-21, 2021-22, 2022-23, and the period of investigation. The Authority considers that the proposed period of investigation is appropriate, in line with the Anti-Dumping Rules.

IPMA has submitted that China PR must be considered a non-market economy, and Chinese producers should demonstrate that market economy conditions prevail with regard to the production and sale of the product under consideration. Unless Chinese producers show that such market economy conditions exist, their normal value must be determined according to Para 7 of Annexure-I to the Anti-Dumping Rules 1995 ("AD Rules").

Therefore, for the purpose of the present initiation, the Authority has determined the normal value for China PR based on the price payable in India. The normal value has been determined based on estimates of the cost of production of the applicant domestic producers, duly adjusted for selling, general, and administrative expenses, along with a reasonable profit margin.

According to the Notification of DGTR, the applicant claimed it did not have access to information regarding the domestic selling price prevailing in Chile. Since there is no dedicated tariff classification for the product, the applicant could not rely on the price of imports into or exports from the subject country. Further, information regarding the cost of production in the subject country was not available to the domestic industry.

The normal value and export prices have been compared at the ex-factory level, which prima facie establishes that the dumping margin is above the de minimis level for the subject goods imported from Chile and China. Thus, there is sufficient prima facie evidence that the product under consideration from Chile and China is being dumped in the domestic market of India by exporters from the subject countries.
 

Web Title: Century, JK Paper, Emami, ITC, and TNPL provide information to initiate an anti-dumping investigation into virgin multilayer paperboard by the government