Continuation of dumping duty on PVC paste resin recommended .

The Designated Authority in the Commerce Ministry has recommended the extension of definitive anti-dumping duty in a modified manner on imports of PVC paste resin originating or exported from the European Union, following a sunset review.

Normally, sunset review is conducted by the authority if the original petitioner is faced with the prospect that the cessation of anti-dumping duty, after its full recommended period is over, is bound to inflict injury on the domestic industry. In this case, the anti-dumping duty was notified on October 7, 2004, and was extended till July 6, 2010.

Though the original petitioner did not file any sunset review, the Designated Authority conducted a sunset review on its own in the wake of the order of the Delhi High Court in 2006, ruling sunset review mandatory even if a petition is not filed by the domestic industry concerned. However, in the review probe, Chemplast Sanmar Ltd had responded to the initiation notification.

The company accounts for 78.97 per cent of total Indian production and satisfies the norm of “standing” and constitutes “domestic industry”.

The product in the original investigation and present review is polyvinyl chloride paste resin also known as polyvinyl chloride resin (emulsion grade) or PVC paste resin. It is produced from vinyl chloride monomer and is produced and sold as white or off-white powder. It is used in artificial leather (Rexene), coated fabrics, tarpaulins, conveyor belting, toys, automotive sealant and adhesives.

The authority said that PVC resins of different grades are being imported but the interested parties have not placed any evidence on record to establish that the different grades of PVC resins are different products and are not technically and commercially substitutable.

As such, the authority found no merit in the argument of the interested parties for exclusion of these grades from the ambit of anti-dumping duty.

After studying the various parameters to determine the injury to the domestic industry if the subject goods were allowed without being subject to anti-dumping duty, the authority held that the situation of domestic industry has worsened further despite the existing anti-dumping duty. Further, should the present anti-dumping duty be revoked, injury to the domestic industry is likely to continue and intensify.

It also found that the existing anti-dumping duty is insufficient to address the continued dumping and consequent injury to the indigenous industry and hence the anti-dumping duty is required to be “extended and modified”.

Accordingly, it is proposed that polyvinyl chloride paste resin originating from EU and exported from the EU and also originating from any other country but exported through the EU would attract an anti-dumping duty of $267.38 a tonne.

Source : Business Line