Financial Daily from THE HINDU group of publications
Monday, Apr 25, 2005
Industry & Economy
Dumping duty on hexamine from Iran proposed
New Delhi , Apr 24
THE Designated Authority in the Commerce Ministry has recommended imposition of definitive anti-dumping duty on imported hexamine from Iran. Hexamine, a white crystalline powder, has its industrial use for the manufacture of solid phenolic resins.
Other important use is for the manufacture of a high explosive cyclonie.
Being anti-bacterial in action, it is also used as a urinary antiseptic, besides being used for adhesives, coatings and in the preservation of hides.
In response to the petition filed by Kanoria Chemicals and Industries Ltd, which alleged dumping of the subject goods from Iran, the Authority held that in its final findings that the domestic industry has suffered material injury, which has been caused by imports from Iran.
Accordingly, it recommended imposition of definitive anti-dumping duty on imported hexamine from Iran, which would be $107.28 per tonne.
In its injury study, the Authority noted that share of imports from the subject country had increased during the period of probe and during the same period, the imports from other countries had fallen.
The total demand of product has declined during the period of investigation but market share of the subject country rose and captured around 2.06 per cent, while market share of other countries declined to 4.62 per cent during the period of probe from 11.44 per cent in 2000-01.
More particularly the market share of petitioner declined from 45.34 per cent in 1999-2000 to 33.59 per cent during the period of probe.
The Authority said the dumped imports were causing price undercutting that ranged from 6 to16 per cent of the net settling price of the domestic industry.
The dumped impost also caused price suppression, as domestic industry could not jack up price of the product in consonance with spurt in cost of production.
The dumped imports were causing undercutting, which had been depressing the price of the like product, and consequently dumped imports were forcing domestic industry to undersell the product.
Price underselling is determined by comparing landed value from the subject country with non-injurious price of like product of the domestic industry.
It was found that weighted landed value of imports from subject country undersells the non-injurious price significantly of the like the product.
The under selling margin was in the range of 13 to 23 per cent during the period of investigation.
This resulted in losses per units during the period of investigation whereas it was earning profit in 1999-2000.
"No other factor has come to the notice of the Authority which might be causing injury to the domestic industry", the Authority said
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