The Hindu Business Line : Dumping duty on mica pearl pigment mooted

Upon examination of firms exporting from the US and the EU, the Authority found that subject goods have been exported to India below its normal value and the domestic industry has suffered material injury due to dumping.

New Delhi , Jan. 2

THE Designated Authority in the Commerce Ministry has recommended imposition of definitive anti-dumping duty on mica pearl pigment from the US and the European Union, after excluding other exporters like China and Japan.

Mica pearl pigment is manufactured and used for three applications viz., automotive, cosmetic and industrial and they are available in three grades.

Industrial grade used for textile printing, plastic industries and many more industrial use.

Cosmetic grade used in colour cosmetics and toiletries and automotive grade used for manufacture of automotive paint and other paints.

The Authority said that it received a written petition from Sudharshan Chemicals Industries Ltd (SCIL), alleging dumping of mica pearl pigment from China, Japan, the US and the EU.

On investigation, the Authority found that the share of imports from China is 2.59 per cent in the total imports, which is de minimus as it is less than 3 per cent of aggregate imports.

Hence it excluded China from the probe.

In the case of Japan, the Japanese firm did not file the response in the form and manner and it did not also file information on cost of production for the exports to India.

As it is found that the firm has exported only automotive grade of mica pearl pigment, which has been excluded from the product under examination, Japan has been excluded from the subject countries as imports.

But upon examination of firms exporting from the US and the EU, the Authority found that subject goods have been exported to India below its normal value and the domestic industry has suffered material injury due to dumping.

Hence it recommends imposition of anti-dumping duty, which would be $1.25 per kg in the case of firms from the EU and $2.27 in the case of firms from the US.

The Authority weighed the period of probe of 18 months from April 1, 2002 to September 30, 2003 and injury analysis was carried out for the period 2000-01 and 2001-02 along with the dumping period of investigation i.e., April 2002 to September 2003.

The Authority came to the conclusion that the margin of dumping in respect of subject countries is more than 2 per cent and the volume of imports from these countries collectively are more than 95 per cent of total imports.

The imports from subject countries have escalated in absolute terms during the period of probe.

In terms of market share in imports, the share of subject countries has increased from 92.96 per cent during 2000-01 to 97.41 per cent during the period of investigation (PoI).

The volume of share of domestic industry in demand has decreased from 63.78 per cent during 2000-01 to 57.86 per cent during the PoI.

Confirming the dumping, it said the sales volume of the domestic industry has decreased from 28.01 per cent during 2001-02 to - 9.18 per cent during the PoI (annualised), whereas in value terms it has decreased from 35.26 per cent during 2001-02 to - 8.93 per cent during the PoI (annualised).

During the same period, the production of the domestic industry has declined from 41.25 per cent in 2001-02 to - 6.37 per cent during the PoI (annualised).

Stating that the profitability of the domestic industry has been eroded resulting into financial losses, the Authority said the petitioner was suffering from price suppression as cost of production of the subject goods has increased, while the selling price of the domestic product has declined and the dumped imports have suppressed the domestic selling price of the indigenous industry.

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