DGFT's Bid to Protect Domestic Market: Recommends Anti-Dumping Duty on Gypsum Board from China and Oman following Investigation [Read Notification]

The Directorate General of Foreign Trade (DGFT), vide case no. AD (OI) -11/2022 issued on 6th October 2023 has recommended anti-dumping duty on Gypsum Board / Tiles with lamination at least on one side” originating in or exported from China PR and Oman.

Based on the application filed by M/s. Saint-Gobain India Private Limited, the Authority, on the basis of sufficient prima facie evidence submitted by the applicant on behalf of the domestic industry, issued a public notice vide Notification No. 6/11/2022–DGTR dated 30.09.2022, published in the Gazette of India Extraordinary, initiating the subject investigation in accordance with Rule 5 of the Rules to determine the existence, degree and effect of the alleged dumping of the subject goods, originating in or exported from the subject countries, and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the alleged injury to the domestic industry.

The applicant has submitted that the product under consideration is classified under Chapter 68, under subheadings 68069000, 68080000, 6809110, 68091900 and 68099000 of the Customs Tariff Act 1975. However, the applicant has claimed that some imports are also made under custom tariff heading 70195900 and 73083000. The custom classification is indicative only, and in no way, it is binding upon the product scope.

Having regard to the contentions raised, submissions made, information provided and facts available before the Authority as recorded above and on the basis of the above analysis of dumping and consequent injury to the domestic industry, the Authority concluded that:

1. The product under consideration has been exported to India at a price below the normal value, resulting in dumping.
2. The dumping of the subject goods has materially retarded the establishment of the domestic industry in India. The examination of the subject imports and the performance of the domestic industry clearly shows that the volume of the subject imports in absolute and relative terms has remained high even after the commencement of commercial production in India. The imports are priced below the actual and target prices of the domestic industry leading to price suppression. At current prices, the domestic industry will not be able to achieve its target performance. The domestic industry has not been able to produce the product to the extent it could have produced. Further, despite significant demand for the product in the country, the domestic industry has not been able to sell even to the limited extent it has produced, and has seen significant increase in closing inventories. The domestic industry is suffering significant financial losses and negative return on investment.
3. The material retardation to the establishment of the domestic industry in India is due to the subject dumped imports from the subject countries.
4. The information on record shows that the non-imposition of the anti-dumping duty will adversely and materially impact the indigenous production. On the other hand, there would be no material impact of imposition of the anti-dumping duty on the consumers or downstream industry or the public at large.
5. On the basis of the information provided by the interested party and the investigation conducted, the Authority is of the view that imposition of the anti-dumping duty will not be against the public interest.

The Authority noted that the investigation was initiated and notified to all the interested parties and adequate opportunity was given to the domestic industry, the exporter, the importers and the other interested parties to provide positive information on the aspect of dumping, injury and causal link. Having initiated and conducted the investigation into dumping, injury and causal link in terms of the provisions laid down under the Antidumping Rules, the Authority is of the view that imposition of the anti-dumping duty is required to offset the dumping and consequent injury.

The Authority considers it necessary to recommend the imposition of the anti dumping duty on the imports of the subject goods originating in or exported from the subject countries.

Having regards to the lesser duty rule followed, the Authority has recommended imposition of anti-dumping duty equal to the lesser of the margin of dumping and the margin of injury so as to remove the injury to the domestic industry. Accordingly, the Authority recommends imposition of the anti-dumping duty on the imports of subject goods originating in or exported from the subject countries for a period of 5 years, from the date of notification to be issued in this regard by the Central Government, equal to the amount mentioned in Column 7 of the duty table appended below. The landed value of the imports for this purpose shall be the assessable value as determined by the Customs under Customs Act, 1962 and applicable level of the customs duties except duties levied under Section 3, 3A, 8B, 9, 9A of the Customs Tariff Act, 1975.

Sl. No	Heading	Description	Country of origin	Country of Export	Producer	Amount of Duty	Unit	Currency
1	68069000/ 68080000/ 68091100/ 68091900/ 68099000 / 70195900/ 73083000	Gypsum Board / Tiles with lamination at least on one side	China PR	China PR	Dream brand new materials (Pingyi) co. ltd.	23.46	MT	USD
2	-do-	-do-	China PR	China PR	Shijiazhuang DianYu Import and Export co. ltd	35.68	MT	USD
3	-do-	-do-	China PR	Any country including China PR	Any other producer excluding producers mentioned in Sl. No. (1) to (2) above	47.62	MT	USD
4	-do-	-do-	Any country Other than subject countries	China PR	Any	47.62	MT	USD
5	-do-	-do-	Oman	Oman	Global Gypsum Board Co. LLC.	71.80	MT	USD
6	-do-	-do-	Oman	Any country including China PR	Any other producer excluding producers mentioned in Sl. No. (5)	91.42	MT	USD
7	-do-	-do-	Any country Other than subject countries	Oman	Any	91.42	MT

To Read the full text of the Order CLICK HERE

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