Front axle beam and steering knuckle from China.

G. Srinivasan

New Delhi, Dec. 12 Continuing its trade defence measure through the armoury of anti-dumping duty, the Commerce Ministry has set off dumping probe into imported front axle beam (FAB) and steering knuckle (SK) purported for heavy and medium vehicles originating in or exported from China.

While FAB is a safety critical item and carries the load of the vehicle and also keeps the steering in place, SK is equally critical component controlling the steering of the vehicle.

In its initiation notification, the Designated Authority has said it has received a petition from the domestic manufacturer of the subject goods Bharat Forge Ltd (Pune), which has proposed that China being a non-market economy, the normal value is required to be resolved according to anti-dumping rules.

The applicant has considered European Union as an appropriate surrogate country and said the normal value can be computed on the basis of (i) price in Europe and (ii) costs in Europe (after addition of reasonable profits). Alternatively, the applicant has considered price in India, duly adjusted, to determine value. The normal value has been determined accordingly with the normal value being determined separately for FAB and SK. These have been determined separately for forged and machined products for comparison with the relevant export price.

The authority said the applicant has advanced evidence claiming injury as a result of alleged dumping and provided details separately for FAB and SK. Imports have increased in absolute terms and in relation to production and consumption in the country; and are undercutting the prices of the domestic industry. As a consequence, the applicant has claimed deterioration in performance of the domestic industry in terms of sales, production, utilisation of capacity, market share and price suppression, profit and return on capital employed. The authority said there is sufficient evidence of the injury being suffered by the applicant triggered by “dumped imports from China both to justify initiation of this investigation”.

The period of investigation is from April 1, 2008 to September 30, 2008, though the injury investigation covers the period from fiscal years 2006-07, 2007-08 and the period of investigation of first half of the current fiscal, the authority said.

(This article was published in the Business Line print edition dated December 13, 2008)
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