The Hindu Business Line : Ministry recommends dumping duty on PTFE from China

THE Designated Authority in the Commerce Ministry has recommended imposition of definitive anti-dumping duty on imported polytetrafluroethylene (PTFE) from China, used in electrical, electronic, mechanical and chemical industries.

In its final findings, recently notified, the Authority said PTFE is produced in various grades such as moulding grade, fine powder, aqueous dispersions compound grades and filled grades.

PTFE is widely used by industry for their unique features which include chemical inertness, electrical and thermal insulation, low-coefficient of friction, non-toxic, non-flammable, resistance to radiation, low-level of static and dynamic friction and outstanding electrical properties over a wide frequency range.

After undertaking the probe, the authority held that the subject goods have been exported to India from China below its normal value and the domestic industry has suffered material injury, which has been caused by dumped imports from the subject country.

Accordingly, it is proposed to recommend imposition of anti-dumping duty, which would be the difference between $7.78 per kg and the landed value of imports per kg from the Chinese firm Shandong Dongyue Polymer Material Company Ltd; in the case of the other Chinese firm, Taizhou Meilan Resin Process Co Ltd, the anti-dumping duty should be the difference between $8.32 per kg and the landed value of imports.

For other exporters from China, the anti-dumping duty would be the difference between $8.50 per kg and the landed value of imports.

The anti-dumping probe was set off, following a complaint from Hindustan Fluorocarbons Ltd, Hyderabad, on behalf of the domestic industry representing the entire domestic production of the subject goods. The investigation of dumping and injury covered the period from January 1 to December 31, 2003 and the examination of the trends in the context of injury analysis covered the period from April 1, 2000 to the end of period of investigation.

The Authority said significant increase in volume of imports between 2000-01 and the period of probe led to increase in share of imports in demand/consumption.

As a direct result, share of domestic industry declined between 2000-01 and period of investigation after recording an increase between 2000-01 and 2001-02. Market share of the dumped imports gradually increased over the periods. As a direct consequence, the market share of the domestic industry declined markedly.

Besides, imports from the subject country were significantly under cutting the prices of the domestic industry, which prevented the domestic industry from selling the product at a price, which would have enabled it to recover its cost of production and earn a plausible profit.

This led to significant deterioration in the performance of the domestic industry in terms of profits, cash flows and return on investment.

Hence, it is concluded that the dumped imports originating in the subject country have inflicted material injury to the domestic industry.

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