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Anti-Dumping Investigation concerning imports of LDPE

Anti-Dumping Investigation concerning imports of LDPE

To be published in Part-I Section I of the Gazette of lndia Extraordinary

F. No.6/30/2020-DGTR
Government of India
Ministry of Commerce & Industry
(Directorate General of Trade Remedies)
4th Floor, Jeevan Tara Building, 5, Parliament Street, New Delhi – 110001

Dated: 23.10.2020

INITIATION NOTIFICATION

Case No. AD (Ot) 25/2020

Subject: Initiation of Anti-Dumping Investigation concerning imports of  “Low Density Polyethylene (LDPE)” from Qatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates and United States of America.

1. Chemicals and Petrochemicals Manufacturers Association (hereinafter also refened to as the “Applicant”) has filed an application (also referred to as the “petition”) on behalfofdomestic industry, seeking initiation of anti-dumping investigation conceming imports of ..Low Density Polyethylene (LDPE)”, originating in or exported from eatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates and united states of America (also referred to as “subject countries”) before the Designated Authority (hereinafter also referred to as the “Authority”) in accordance with customs Tariff Act, 1975 as amended from time to time (hereinafter also referred to as the “Act”) and customs Tariff (ldentification, Assessment and collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter also referred to as the “Rules”).

2. The Applicant has alleged that material injury to the Domestic Industry is being caused due to dumped imports of LDPE from the subject countries, and has requested for imposition of anti-dumping duty on the import of the subject goods from the subject countries.

Product under Consideration (PIIC)

3. The product under consideration is “Low Density Polyethylene (LDPE)” or “high pressure polyethylene”, excluding (a) compounded LDPE, and (b) LDPE having density greater than 0.925 GM/cubic CM (hereinafter also referred to as “subject goods” or “PUC”). It is, however, clarified that base LDPE imported for the purpose of compounding in India is covered within the scope of product under consideration.

4. Polyethylene is a thermoplastic made by polymerisation of monomer ethylene. LDPE is a type of polyethylene, having a density range of 0.910-0.935 grams per cubic centimeter and is often referred to as the “branched” polyethylene. Its molecular structure is characterized by the presence of many asymmetrical branches (some relatively long) on the chain of carbon atoms.

5. LDPE is produced using high-pressure reactors, either through tubular or stirred autoclaves. In a typical high-pressure process, ethylene feed is mixed with a purified recycle stream. Initiator and chain transfer agents are added to the mixture, which is then compressed to approximately 300 bars. The feed is then further compressed to the polymerization pressure in a hyper-compressor (2,000 to 3,000 bars) and fed to the reaction section. At the outlet, unreacted ethylene is removed and recycled. Polyethylene is then fed to an extruder and the product is pelletized for shipment.

6. It is used in applications requiring clarity, inertness, processing ease, sealability, moisture barriers, and good electrical properties. It is also used for producing trash bags, carrier bags, heavy duty bags, agricultural films, automatic packaging films and bags for food and sanitary articles, frozen food packaging, shrink and stretch hood film, surface protection film, lamination film, bubble wrap, adhesive tape backing films, foam for manufacture of mattresses etc.

7. The product under consideration is classified under chapter 39 of the customs Tariff Act, 1975 (51 of 1975) under the custom heading 3901. The customs classification is only indicative and is not binding on the scope ofthe product under consideration.

Like Article

8. The Appticant has claimed that there is no known difference between the subject goods exported from the subject countries and that produced by the domestic industry. Subject goods produced by the domestic industry and product under consideration imported from the subject countries are comparable in terms ofessential product characteristics such as physical & chemical characteristics, manufacturing process & technology, functions & uses, product specifications, pricing, distribution & marketing and tariff classification of the goods. consumers use the two interchangeably. The Applicant has further claimed that the two are technically and commercially substitutable and, hence, should be treated as like article under the Rules. Therefore, for the purpose ofthe present investigation, the subject goods produced by the Applicant in India are being treated as’Like Article’ to the subject goods being imported from the subject countries.

Domestic Industry-And Standing

9. The application has been filed by Chemicals and Petrochemicals Manufacturers Association on behalf of the domestic industry. Reliance Industries Limited (RIL), which is a domestic producer of the product, has provided its information as domestic industry. The Applicant has claimed that RIL has imported the subject goods from the subject countries, but the volume of such imports is negligible in relation to the subject imports, demand in India, and its production and consumption. Further, RIL is not related to any exporter or producer ofthe subject goods in the subject countries or importer ofthe product under consideration in India. RIL is the sole producer ofthe product under consideration in India.

10. In view of the above, and after due examination, the Authority notes that the Applicant constitutes eligible domestic industry in terms of Rule 2(b), and the application satisfies the criteria of standing in terms of Rule 5(3) of the Rules supra.

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