Home India Ministry of Commerce and Industry Whereas Gujarat Fluorochemicals Limited hereinafter referred...
Date: 2019-02-05 Category: Extra Ordinary State: Union Government Country: India

Whereas Gujarat Fluorochemicals Limited hereinafter referred

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: This document terminates the countervailing duty (CVD) investigation concerning imports of Fluoroelastomers FKM from China, initiated on August 14, 2018. The termination follows a written request from Gujarat Fluorochemicals Limited, the domestic industry applicant. The request was influenced by the imposition of an anti-dumping duty (ADD) on the same product and the preparation for a Sunset Review (SSR) petition for the ADD case. Key Points / Main Content: * **Initiation and Subject of Investigation:** * The investigation concerned alleged subsidization of Fluoroelastomers FKM from China. * It was initiated based on an application by Gujarat Fluorochemicals Limited. * Pre-initiation consultations were held with representatives of the Chinese government on August 6, 2018. * The investigation period (POI) was January-December 2017, with trend analysis covering 2014-15, 2015-16, and 2016-17. * **Investigation Process:** * The Authority sent copies of the initiation notification and questionnaires to relevant parties. * Interested parties were requested to provide their views and information. * An oral hearing was scheduled for February 8, 2019. * **Reasons for Termination:** * Gujarat Fluorochemicals Limited requested termination of the CVD investigation. * The request was due to the imposition of an anti-dumping duty (ADD) on the same product. * The domestic industry is preparing for a Sunset Review (SSR) petition for the ADD case. * **Legal Basis for Termination:** * Rule 16(1)(a) of the CVD Rules mandates termination upon written request from the domestic industry. * The Authority has no discretion to deny termination under this rule. * **Termination Order:** * The Authority terminated the CVD investigation initiated on August 14, 2018. Impact Analysis: Gujarat Fluorochemicals Limited (Domestic Industry) * Impact: The domestic industry's request to terminate the CVD investigation has been granted. * Action Required: Proceed with the Sunset Review petition for the ADD case. Chinese Producers/Exporters of Fluoroelastomers FKM * Impact: The countervailing duty investigation has been terminated. * Action Required: No further action required regarding this investigation. Importers/Users of Fluoroelastomers FKM in India * Impact: The countervailing duty investigation has been terminated. * Action Required: No further action required regarding this investigation. Designated Authority * Impact: The Authority has terminated the investigation as per the CVD Rules. * Action Required: Issue a public notice of the termination.

Key Entities Referenced

Directorate General of Trade Remedies: Government of India agency responsible for trade remedy investigations. New Delhi: The location where the final finding was issued. China PR: Country of origin of the fluoroelastomers subject to the countervailing duty investigation. Gujarat Fluorochemicals Limited: The applicant/petitioner representing the domestic industry in the countervailing duty investigation. Customs Tariff Act 1975: The primary legislation governing customs tariffs in India. Countervailing duty: A duty imposed to offset subsidies provided by a foreign government. Fluoroelastomers FKM: The goods subject to the countervailing duty investigation. Ministry of Finance: The ministry that issued the notification imposing ADD (Anti-Dumping Duty)
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(िजसे यहा ं आवेदक या यािचकाकता (cid:28) के (cid:29)प म (cid:31) उि(cid:3)लिखत (cid:1)कया गया ह)ै ने चीन जनवादी गणरा’ य (िजसे यहां संब( दशे कहा गया ह)ै से कुछ िवशेष (cid:10)लओू रोला+टोमस (cid:28) (एफकेएम) (िजसे इसके बाद संब( व+ तु कहा गया ह)ै क/ आ0थक सहायता का आरोप लगात े 2ए समय- समय पर यथासशं ोिधत सीमाशु(cid:3)क टै5रफ अिधिनयम, 1975 (िजसे इसके बाद अिधिनयम कहा गया ह)ै और समय-समय पर यथासंशोिधत (िजसे इसके बाद िनयमावली कहा गया ह)ै सीमाशु(cid:3) क टै5रफ (आ0थक सहायता 7ा8 त व+तु9 क/ पहचान, उन पर पाटनरोधी शु(cid:3)क का आकलन और सं:हण तथा ;ित िनधार(cid:28) ण के िलए) िनयमावली, 1995 के अनुसरण म,(cid:31) घरेल ू उ@ोग क/ ओर से िनAदBट 7ािधकारी (िजसे इसके बाद 7ािधकारी कहा गया गया ह)ै के सम; एक आवेदन दायर (cid:1)कया है और संब( दशे के उDम क/ संब( व+त ु9 के आयातE पर 7ितकारी शु(cid:3) कE को लाग ू करन े के िलए आ0थक सहायता-रोधी जांच क/ शु(cid:29)आत के िलए अनुरोध (cid:1)कया ह ै। 2. ए एस सी एम के अनGु छ ेद 13 क/ शतJ म,(cid:31) नई (cid:1)द(cid:3) ली म(cid:31) (cid:1)दनाकं 6 अग+ त, 2018 को चीन जनवादी गणरा’ य क/ सरकार के 7ितिनिधयE के साथ जांच श(cid:29)ु आत से पूव (cid:28)िवचार-िवमश (cid:28)(cid:1)कया गया । 826 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] 3. आवेदक Lारा 7+त ुत 7थम दBृ ट या साN य के आधार पर किथत आ0थक सहायता क/ िव@मानता, माOा और 7भाव का िनधार(cid:28) ण करने तथा 7ितकारी शु(cid:3)क क/ माOा क/ िसफा5रश करने के िलए, जो य(cid:1)द लाग ू (cid:1)कया जाता, तो घरेल ू उ@ोग क/ ;ित दरू करने के िलए पया(cid:28)8 त होता, सीवीडी िनयमावली के िनयम 6 के अनसु रण म(cid:31) संब( सीवीडी जाचं आरंभ करते 2ए, 7ािधकारी न े भारत के राजपO असाधारण म(cid:31) 7कािशत (cid:1)दनांक 14.08.2018 क/ अिधसूचना सं. 6/21/2018-डीजीटीआर के अनुसार एक साव(cid:28)जिनक नो5टस जारी (cid:1)कया। 4. 7ािधकारी ने जांच क/ अविध (पीओआई) जनवरी, 2017-(cid:1)दसंबर, 2017 (12 महीन)े तय क/ ह ै। ;ित िवXल षे ण के संदभ(cid:28) म(cid:31) प(ितयE क/ जांच के िलए, अविध म (cid:31) 2014-15, 2015-16, 2016-17 और जाचं क/ अविध शािमल क/ गई ह ै। 5. 7ािधकारी ने जांच श(cid:29)ु आत के पXच ात भारत म (cid:31)संब( दशे के दतू ावास, संब( दशे स ेYात उZप ादकE/िनया(cid:28)तकE को व आवेदक Lारा उल\ध कराए गए पतE के अनुसार Yात आयातकE/7यो] ता9 तथा घरेल ू उ@ोग को जाचं शु(cid:29)आत क/ अिधसूचना क/ 7ितयां भेजी और उन से सीवीडी िनयमावली के िनयम 7 के अनुसार जांच शु(cid:29)आत अिधसूचना के जारी होन े के 40 (cid:1)दनE के भीतर िलिखत म (cid:31) अपने िवचार उपल\ ध करान े का अनुरोध (cid:1)कया । ऐस े अनुरोध दायर करने के िलए अिनवाय(cid:28) समय िव+त ार, जहां भी ज(cid:29)री था, भी 7ािधकारी Lारा 7दान (cid:1)कए गए । 6. 7ािधकारी Lारा उपयु(cid:28)क्त िनयमावली के िनयम 7(3) के अनुसरण म(cid:31) भारत म (cid:31) संब( दशे के दतू ावास और Yात उZप ादकE/िनया(cid:28)तकE के आवेदन के अगोपनीय पाठ क/ 7ितया ं उपल\ ध कराई गई । जहां भी अनरु ोध (cid:1)कया गया, अbय संब( प;कारE को आवेदन क/ एक 7ित उपलबध कराई गई । भारत म (cid:31)संब( दशे के दतू ावास स ेभी उनके दशे से िनया(cid:28)तकE/उZप ादकE को िनधा5(cid:28) रत समय सीमा के भीतर 7Xन ावली का उZत र दने े क/ सलाह देने का अनुरोध (cid:1)कया गया । 7. 7ािधकारी ने सी वी डी िनयमावली के िनयम 7(4) के अनसु रण म (cid:31)अपिे ;त सूचना उपलबध करान ेके िलए संब( दशे म(cid:31) समथ(cid:28) Yात उZप ादकE/िनया(cid:28)तकE को 7X नावली भेजी । 8. जांच शु(cid:29)आत अिधसूचना और सूचना क/ 7ित(cid:1)dया म,(cid:31) संब( दशे से िनe निलिखत िनया(cid:28)तकE/उZ पादकE न े िनयतकE क/ 7Xन ावली के उZत र को दायर करते 2ए 7ािधकारी को उZत र 7+ तुत (cid:1)कए : क. मै. इनर मंगोिलया 3 एफ वानहाओ (cid:10)लओू रो केिमक(cid:3)स कंपनी िल0 ख. मै0 सोलवे +प ेिशयिलटी पॉलीमस (cid:28)(चांगशू) कं0 िलिम0, ग. मै0 सोलवे (शंघाई) कंपनी िलिम0, घ. मै0 झEगाऊ चेनगआु ंग 5रसच(cid:28) इं+ टीjूट केिमकल इंड+ kी कं0 िलिम0, ड. मै0 ऊनी अलाएं स िलिम0, च. मै0 डाय(cid:1)कन (cid:10)लूओरोकेिमक(cid:3) स (चीन) कं0 िलिम0, छ. मै0 चेनगुआंग (cid:10)लूओरो एडं िसिलकॉन एला+ टोमस(cid:28) कं0 िलिम0, 9. अिनवाय(cid:28) सूचना क/ मांग करत े 2ए भारत म (cid:31) संब( व+ त9ु के Yात आयातकE/7यो] ता9 को भी 7X नाविलयां भजे ी गl । िनeन िलिखत आयातकE/7यो]त ा9 न ेआयातक 7X नावली उZत र को दायर करने के Lारा 7Z यZु त र (cid:1)दया ह ै:- क. मै0 सोलवे +प ेिशयिलटी इंिडया 7ा0 िलिम0, ख. मै0 िनिधगंधा पोलीमस(cid:28) 7ा0 िलिम0, ग. मै0 इ+ट (cid:28) dाप इंटरनेशनल घ. मै0 हाई-टेक ए आर ए आई 7ा0 िल0 न ेभी िलिखत अनुरोधE को दायर करत े2ए 7Z युZ तर (cid:1)दया ह ै।¹Hkkx Iµ[k.M 1º Hkkjr dk jkti=k % vlk/kj.k 3 10. िवशेष तnय E/िवचारE को 7+त ुत करन ेसिहत जांच श(cid:29)ु आत को भी + वीकृत (cid:1)कया गया:- क. मै0 दवे ाशीष पालीमस,(cid:28) ख. मै0 डगे र स(cid:10)े टी इंिडया 7ा0, ग. मै0 टे]न ो पालीमस (cid:28)इंड+k ीज 11. 7ािधकारी ने िविभbन िहतब( प;कारE Lारा 7+ तुत आकं ड़E/साN यE के अगोपनीय पाठ को अb य िहतब( प;कारE Lारा िनरी;ण के िलए खोली गई साव(cid:28)जिनक फाइल के (cid:29)प म(cid:31) उपल\ध कराया । 12. 7ािधकारी ने मौिखक सुनवाई के िलए (cid:1)दनाकं 08.02.2019 क/ तारीख िनधा5(cid:28) रत क/ ह ै। 13. तथािप, आवेदक न े अbय के साथ-साथ िनe निलिखत कारणE का हवाला दते े 2ए अपने (cid:1)दनाकं 22.01.2019 और 01.02.2019 के पOE के अनुसार वतम(cid:28) ान जांच को समा8 त करने का अनरु ोध (cid:1)कया गया ह ै:- - यािचका इसिलए दायर क/ गई ] यE(cid:1)क चीनी उZ पादकE को महZ वपूण(cid:28) 7ितकारी आ0थक सहायता9 से लाभ प2चं रहा था । चूं(cid:1)क समान उZ पाद के िलए आयोिजत ए.डी. जांच म(cid:31) (cid:1)दनाकं 27.12.2018 को अिं तम जांच प5रणाम 18 महीनE के िलए शु(cid:3)क क/ िसफा5रश करत े 2ए जारी (cid:1)कया गया ह,ै घरेल ू उ@ोग को ए.डी. मामल ेके िलए िनणा(cid:28)यक समी;ा (एस एस आर) यािचका पर काम आरंभ करना ह ै। - जब तक सीवीडी जांच पूरी हो जाती ह,ै घरेलू उ@ोग Lारा एस एस आर के ज5रए ए डी डी के िव+ तार क/ मांग करते 2ए एक आवेदन दायर करना होगा । यह आशकं ा ह ै(cid:1)क य(cid:1)द िसफा5रश क/ जाती ह ैतो, सीवीडी शु(cid:3)क अभी भी कम अविध के िलए लाग ू हो सकता ह ै । इसिलए यािचकाकता (cid:28) को िवXव ास नहq ह ै(cid:1)क ]य ा 7ितकारी शु(cid:3)क E को लागू (cid:1)कए जाने के अनरु ोध को जारी रखना उिचत होगा ]य E(cid:1)क इ सी समय वे ए डी मामले म(cid:31) एसएसआर के िलए तयै ारी कर रह ेथे । - िवZत मOं ालय न े (cid:1)दनांक 28.01.2019 को ए डी डी लागू करते 2ए अिधसवूचना जारी क/ ह ै और यह (cid:1)क वत(cid:28)मान ए डी डी (cid:1)दनाकं 27.07.2020 को समा8 त हो जाएगा । यािचकाकता(cid:28) को अग+ त, 2019 तक यािचका दायर करनी ह ै। - य(cid:1)द आवेदक इस अनुरोध के साथ वतम(cid:28) ान सीवीडी यािचका वािपस ल े रह े ह r (cid:1)क य(cid:1)द भिवB य म (cid:31) प5रि+थितयां ऐसी मांग करती ह rतो उb ह (cid:31)इस आवेदन को आगे बढ़ाने क/ + वतंOता होगी । 14. 7ािधकारी नोट करत ेह r(cid:1)क सीवीडी िनयमावली के िनयम 16(1)(क) का पाठ िनe नानुसार ह ै:— “16. जांच का समापन – (1) िन(cid:5)द(cid:7) ट (cid:9)ािधकारी एक साव(cid:18)जिनक सूचना को जारी करत े (cid:25)ए त(cid:26) काल (cid:28)कसी जांच को समा(cid:31)त कर ग ेय(cid:28)द – (क) य(cid:28)द (cid:9)भािवत घरेलू उ&ोग से अथवा उस ) यि* क+ ओर से ऐसा करन े के िलए िलिखत म कोई अनुरोध (cid:9)ा(cid:31)त होता ह,ै िजसके उदाहरण पर जांच आरंभ क+ गई थी;” 7ािधकारी नोट करते ह r(cid:1)क उपरो]त िनयम एक बार घरेल ू उ@ोग Lारा जाचं क/ समािt के िलए िलिखत अनरु ोध दायर (cid:1)कए जान ेके पXच ात, जांच क/ समािt के मामल ेम(cid:31) 7ािधकारी को कोई िववेकािधकार 7दान नहq करते । 15. उपरो]त को uय ान म (cid:31) रखत े 2ए और (cid:1)दनाकं 27.12.2018 के अिं तम जांच प5रणाम के माu यम से 18 महीने क/ अविध के िलए समान संब( व+त ु9 पर पाटनरोधी शु(cid:3) क को लागू (cid:1)कए जाने के कारण यािचकाकता (cid:28) Lारा बताए गए उभरते 2ए घटनाdमE और प5रि+थितयE को +व ीकार करत े2ए, 7ािधकारी एतदLारा अिधसूचना सvं या 6/21/2018- डी जी टी आर के अनसु ार (cid:1)दनांक 14.08.2018 को आरंभ क/ गई वतम(cid:28) ान जाचं को समा8 त करते ह r। सुनील कुमार, अपर सिचव एव ंिनAदB ट 7ािधकारी4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] MINISTRY OF COMMERCE AND INDUSTRY (Department Of Commerce) (DIRECTORATE GENERAL OF TRADE REMEDIES) FINAL FINDING New Delhi, 5th February, 2019 Termination Order Case No. (CVD) 7/2018 Subject: Countervailing duty investigation concerning imports of Fluoroelastomers (FKM) from China PR. F.No. 6/21/2018-DGTR.—Whereas Gujarat Fluorochemicals Limited (hereinafter referred to as the applicant or petitioner) had filed an application before the Designated Authority (hereinafter referred to as the Authority), on behalf of the domestic industry, in accordance with the Customs Tariff Act 1975, as amended from time to time (hereinafter referred to as the Act) and Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, as amended from time to time, (hereinafter referred to as the Rules), alleging subsidization of certain Fluoroelastomers (FKM) (hereinafter referred to as the subject goods), from People’s Republic of China (hereinafter referred to as the subject country) and requested for initiation of an anti- subsidy investigation for levy of countervailing duties on the imports of the subject goods, originating in the subject country. 2. In terms of Article 13 of ASCM, pre-initiation consultations were held with the representatives of the Government of the People’s Republic of China on 6th August, 2018 in New Delhi. 3. The Authority on the basis of prima facie evidence submitted by the applicant, issued a public notice vide Notification No.6/21/2018-DGTR dated 14.08.2018, published in the Gazette of India, Extraordinary, initiating the subject CVD investigation in accordance with the Rule 6 of the CVD Rules, to determine the existence, degree and effect of the alleged subsidization and to recommend the amount of Countervailing duty, which, if levied, would be adequate to remove the injury to the domestic industry. 4. The Authority considered January, 2017 – December, 2017 (12 months) as the Period of Investigation (POI). For the examination of trends, in the context of injury analysis, the periods covered included 2014-15, 2015-16, 2016- 17 and the period of investigation. 5. The Authority post-initiation sent copies of the initiation notification to the embassy of the subject country in India, known producers/exporters from the subject country, known importers/users and the domestic industry as per the addresses made available by the applicant and requested them to make their views known in writing within 40 days of the initiation notification as per Rule 7 of the CVD Rules. Necessary extensions to file such submissions wherever warranted was also granted by the Authority. 6. The Authority provided copies of the non-confidential version of the application to the known producers/exporters and to the embassy of the subject country in India in accordance with Rule 7(3) of the Rules supra. A copy of the application was also provided to other interested parties, wherever requested. The embassy of the subject country in India were also requested to advise the exporters/producers from their country to respond to the questionnaire within the prescribed time limit. 7. The Authority sent questionnaires to enable known producers/exporters in subject country to provide requisite information in accordance with Rule 7(4) of the CVD Rules; 8. In response to the initiation notification and intimation, following exporters / producers from subject country have responded to the Authority by filing Exporter’s Questionnaire Response. a) M/s Inner Mongolia 3F Wanhao Fluorochemical Co., Ltd. b) M/s Solvay Specialty polymers (Changshu) Co Ltd. c) M/s Solvay (Shanghai) Co Ltd. d) M/s Zhonghao Chenguang Research Institute of Chemical Industry Co., Ltd. e) M/s Uni-Alliance Ltd. f) M/s Daikin Fluorochemicals (China) Co., Ltd. g) M/s Chenguang Fluoro and Silicone Elastomers Co., Ltd.¹Hkkx Iµ[k.M 1º Hkkjr dk jkti=k % vlk/kj.k 5 9. Questionnaires were also sent to known importers / users of subject goods in India calling for necessary information. Following importers/users responded by filing Importer Questionnaire responses; a) M/s Solvay Specialities India private Limited. b) M/s Nishigandha Polymers Pvt. Ltd. c) M/s Eastcorp International d) M/s HI-Tech ARAI Private Limited had also responded by filing written submissions. 10. The initiation was also acknowledged including submissions of certain facts/views: a) M/s Devashish Polymers b) M/s Drager Safety India Pvt. c) M/s Techno Polymer Industries 11. The Authority made available non-confidential version of the data/evidences presented by various interested parties in the form of a public file kept open for inspection by the interested parties. 12. The Authority fixed the date for Oral hearing on 08.02.2019. 13. However the Applicant has made request to terminate the present investigation vide its letters dated 22.01.2019 and 01.02.2019 citing following reasons inter alia ; - The petition was filed as Chinese Producers were benefitted with significant Countervailing Subsidies. Since Final Finding dated 27.12.2018 for the same product in an AD investigation have been issued recommending duty for 18 months, the domestic industry has to start working on Sunset Review (SSR) Petition for the AD case. - By the time the CVD investigation is completed the Domestic industry would be filing an application seeking extension of ADD through SSR. It is apprehended that the CVD duty may still be for shorter duration, if recommended. The petitioner is therefore not sure whether it would be appropriate to continue to request imposition of countervailing duties as at the same time they were preparing for SSR in AD case. - The Ministry of Finance has issued the notification imposing ADD dated 28.01.2019 and that present ADD will cease on 27.07.2020. The petitioner has to file petition latest by Aug, 2019. - The Applicant is withdrawing the present CVD petition requesting liberty to pursue the same in future in case the situation so demands. 14. The Authority notes that the Rule 16 (1) (a) of the CVD Rules read as under ; “16. Termination of investigation. – (1) The designated authority shall, by issue of a public notice, terminate an investigation immediately if – (a) it receives a request in writing for doing so from or on behalf of the domestic industry affected, at whose instance the investigation was initiated;” The Authority notes that the aforesaid rule does not grant any discretion to the Authority in the matter of termination of investigation, once the domestic industry files a written request for termination of the investigation. 15. The Authority keeping in view the aforesaid and acknowledging the developments/ circumstances stated by the petitioner emerging on account of levy of Anti-dumping duty on same subject goods through Final Finding dated 27.12.2018 for a period of 18 months, hereby terminates the present investigation initiated on 14.08.2018 vide Notification No. 6/21/2018- DGTR. SUNIL KUMAR, Addl. Secy. & Designated Authority Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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