TCCA - Petition - CV

Trichloro Isocyanuric Acid Confidential
PETITION
FOR
INITIATION OF ANTI-DUMPING INVESTIGATION
ON DUMPED IMPORTS OF
TRICHLORO ISOCYANURIC ACID
FROM
CHINA AND JAPAN
_______________________________
APPLICANT
BODAL CHEMICALS LIMITED

OPP. VENETIAN VILLA, NR. ANAND NIKETAN SCHOOL,
NR. SHILAJ CIRCLE, OFF. S P RING ROAD, THALTEJ,
AHMEDABAD-380059, GUJRAT, INDIA
_______________________________
REPRESENTED BY
TPM CONSULTANTS
J-209 SAKET, NEW DELHI-17
PHONE – 49892200, FAX –26859341,
EMAIL – akg@tpm.in, aastha@tpm.in
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Bodal Chemicals Limited
List of Annexures
S. No. Annexure No. Particulars Page No.

1 Annexure A Proforma IV-A 44
2 Annexure B Proforma IV-B 48
3 Annexure 1.1 Manufacturing process of domestic industry 50
4 Annexure 1.2 Relevant extracts of Customs Tariff Act 52
5 Annexure 1.3 Relevant extracts of Customs Notifications 57
6 Annexure 1.4 Country-wise Import Statement 64
7 Annexure 1.5 List of known foreign producers 66
8 Annexure 1.6 List of known importers and users in India 68
9 Annexure 2.1 Letter from Applicant 71
10 Annexure 2.2 Calculation of impact of proposed duty 74
11 Annexure 2.3 Technical Data Sheet 76
12 Annexure 2.4 Details of plant shutdown 78
13 Annexure 3.1 Note on treatment of China PR as non- 80
market economy
14 Annexure 3.2 Calculation for normal value 90
15 Annexure 3.3 Calculation of export price 93
16 Annexure 3.4 Evidence of adjustment in export price 95
17 Annexure 3.5 Calculation of dumping margin and injury
99
margin
18 Annexure 6.1 Costing Information 101
19 Annexure 6.2 Cost Audit Report of the applicant 106
20 Annexure 6.3 Financial statements of the applicant 107
21 Annexure 6.4 Capacity evidence 108
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Table of Content
BACKGROUND AND INTRODUCTION.....................................................................4

A. Introduction.....................................................................................................4
B. Background of the applicant...........................................................................4
C. Critical need for imposition of duty.................................................................5
D. Request for imposition of provisional duty......................................................8
PART I – IMPORTED PRODUCT INFORMATION....................................................9
A. Product description.........................................................................................9
B. Unit of measurement......................................................................................9
C. Uses............................................................................................................... 9
D. Manufacturing process.................................................................................10
E. Tariff classification........................................................................................10
F. Customs duty............................................................................................... 11
G. PCN methodology........................................................................................ 11
PART II – INDIAN INDUSTRY PROFILE.................................................................13
PART III – EVIDENCE OF DUMPING......................................................................17
A. Estimate of normal value – China.................................................................18
B. Estimate of normal value – Japan................................................................25
C. Estimates of net export price........................................................................26
D. Estimates of dumping margin.......................................................................26
PART IV – EVIDENCE OF INJURY..........................................................................27
A. Preliminary submissions...............................................................................27
B. Volume effect of dumped imports.................................................................29
C. Price effect of dumped imports.....................................................................30
D. Economic parameters relating to the domestic industry...............................33
PART V – EVIDENCE OF CAUSAL LINK...............................................................37
A. Non-attribution analysis................................................................................37
B. Factors establishing causal link....................................................................39
PART VI – COSTING INFORMATION.....................................................................41
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BACKGROUND AND INTRODUCTION
A. Introduction
1. The present application is being filed by Bodal Chemicals Limited (hereinafter

referred to as the “applicant” or the “domestic industry”) seeking initiation of anti-
dumping investigation into and imposition of anti-dumping duty on imports of
Trichloro Isocyanuric Acid (“TCCA” or the “product under consideration” or the
“subject goods”) from China and Japan (“subject countries”). The subject goods are
being imported into India from the subject country at dumped prices, causing injury
to the domestic industry in India.
2. The application is in the form and manner prescribed by the Designated

Authority and contains sufficient information to justify initiation of investigation and
imposition of anti-dumping duty. The applicant has provided all relevant information
that is reasonably available and requests the Designated Authority to kindly
undertake anti-dumping investigation into imports of subject goods from the subject
countries. In case the information provided is considered to be insufficient for the
purpose of undertaking detailed investigation, the applicant may be appropriately
advised. The applicant is willing to provide any further information which may be
required in this connection, and which is reasonably available or accessible to it.
B. Background of the applicant
3. Bodal Chemicals Limited (BCL) is the first producer of Trichloro Isocyanuric

Acid TCCA in India. The plant was the subject goods was set up by Trion Chemicals
Private Limited and BCL acquired the 100% stake in Trion Chemicals Private
Limited. The plant has a capacity of [ 6,000 ] MT. The company commenced
commercial production on [ 1st April 2017 ].
4. Prior to establishment of the present plant, India was completely dependent on

imports for the product. The production of TCCA is geographically concentrated to
limited regions. The technology to manufacture the product is available in China,
Japan, the USA. A plant for production of the product has been recently set up in
Bangladesh, but has not commenced commercial production so far. Therefore, the
plant set up by BCL is intended to eliminate the reliance on imports and make
country AtmaNirbhar. In addition to the present installed capacity of [ 6,000 ] MT,
BCL has in place sufficient infrastructural facilities to expand its capacity to [ 18,000 ]
MT in future, by expanding its machinery.
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C. Critical need for imposition of duty
5. The applicant urges that there is a critical need for interim imposition of duty.
This is because the applicant is the sole producer of the subject goods in India and
has been struggling to maintain its operations in India, leave aside reaching desired
levels. This is evident from the following:
b. Rate of increase in imports

6. The imports have significantly increased during the proposed period of
investigation. Although the imports decreased in 2020-21 and 2021-22, such
decrease was caused only due lack of demand caused by Covid. However, the
volumes have recovered and increased significantly during the period of
investigation. As evident from the table below, the imports from the subject countries
were the highest during the proposed period of investigation. Despite the significant
capacity held by the domestic industry, the imports have increased by 149% in the
proposed period of investigation and the domestic industry is faced with a capacity
utilisation of nearly [ 55 ] % of the deployed capacity and only [ 15.57 ] % of the
installed capacity.
Particulars Unit 2019-20 2020-21 2021-22 2022-23

Subject imports MT 4,354 1,679 2,088 5,194
Rate of increase % -61% 24% 149%
Capacity utilisation of
% 62.59% 59.95% 61.06% 55.25%
domestic industry
7. It is submitted due to multiple shutdowns in the injury period, the available

capacity during of the domestic industry during this period was much below the
installed capacity of [ 6,000 ] MT. Thus, the capacity utilisation for these years was
comparatively high.
c. Decrease in prices despite increasing prices of raw materials

8. The price of one of the major raw materials i.e., cyanuric acid has increased by
nearly 66% during the period of investigation, in comparison with the previous year.
However, the landed price of the product under consideration has decline very
significantly. The price decline has been too steep even within the proposed period
of investigation. This clearly shows that the exporters are purposely reducing their
prices in India, to drive out the applicant from the market.
5
Landed Value (₹/MT)

300,000
280,000
260,000
240,000
220,000
200,000
180,000
160,000
140,000
120,000
100,000
1 10 19 28 37 46 55 64 73 82 91 100109118127136145154163172181190199208217226235244253262
d. Impossible for the domestic industry to recover even variable cost at present
import prices
9. At the current landed price of the product under consideration, the domestic
industry will not be able to recover even its variable cost. Against a variable cost of ₹
[ 1,80,412 ] per MT incurred by the domestic industry, the landed price of the imports
from the subject countries was ₹ 1,64,996 MT during the period of investigation and
had declined to as low as ₹ 1,18,884 per MT in the month of March, 2023. Such a
situation indicates that if the domestic industry is forced to continue to compete with
the imports, it would not be in a position to even recover even its variable cost. In
such a situation, it would have to undergo significant production suspensions.
e. Low volume of domestic sales

10. Against a demand of [ 5,545 ] MT in India during the proposed period of
investigation, the domestic industry has sold only [ 352 ] MT, that too at significant
financial losses. The low-priced imports have made it impossible for the applicant to
increase its share in the Indian market. As a result, the domestic industry was forced
to export nearly [ 64 ]% of its production in order to avoid inventory compilation, that
too when its capacity utilization is only [ 15.57 ]% of the installed capacity and [ 55.25
6
] % of the deployed capacity. The domestic sales are only [ 21 ]% in relation to

deployed capacity of the domestic industry [ 6 ] % of the installed capacity. Further,
whereas the domestic industry has the installed capacity sufficient enough to meet
the domestic demand. Despite this, the domestic industry had a market share of only
[ 6 ] % in the period of investigation.
a. Negligible market share despite 6 years of operations

11. The domestic industry is unable to establish itself in the market and stabilise its
operations despite being in operation since 2017. This is evident from the fact that
the share of the domestic industry in the Indian market is [ 6% ]. The entire Indian
market is dominated by the exporters, even though the domestic industry had
capacity to cater to the entirety of the demand itself.
f. Plant shutdowns faced due to accumulation of inventories

12. The applicant was forced to shut down its plant multiple times during the injury
period because it was unable to dispose of its inventory. In fact, the applicant shut
down its plant on [ 12th January 2023 ] to avoid increasing inventory and it has not
been able to restart it since then due to the continuous dumping from the subject
country.
g. Under-utilised capacity
13. The applicant set up its plant to make India Atmanirbhar and reduce its reliance
on imports., The applicant has a capacity utilisation of only of less than [ 15.57 ]% of
the installed capacity during the period of investigation. Due to the plant shutdowns,
the available capacity was much lower. Out of [ 6,000 ] MT, the deployed capacity
was only [ 1,691 ] MT during the proposed period of investigation. Despite having
only [ 28 ] % capacity available, the capacity utilisation of the domestic industry was
only [ 15.57% ] %.
h. Increased losses and negative return on investment

14. As mentioned hereinabove, the domestic industry has started its commercial
production in 2017. Despite being in operations for more than 5 years, the applicant
has not been able to break even for most of its life. It has earned a profit only in
2021-22, that too because of low volume of imports in this period.
15. At the stage of setting up the plant, the domestic industry had anticipated PBT
growth rate of [ 61 ]%. Against this, the applicant has incurred losses and cash
losses and is suffering negative return on investment during the period of
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investigation. The applicant has incurred losses of nearly ₹ [ 16 ] crores during the
period of investigation.
i. Investments worth ₹ [ 106 ] crores under threat
16. The domestic industry has invested nearly ₹ [ 106 ] crores to set up the plant
for the subject goods and make India self-sufficient. However, despite being in the
market for more than 6 years, the domestic industry is still facing severe financial
losses and cash losses. It is clear that the domestic industry is unable to establish
itself in the market due to the continuous dumping from the subject countries. The
domestic industry has already faced plant shutdowns due to the low-priced imports
from China and Japan. If the current situation continues, the domestic industry will
have no option but to permanently shut down its operations.
D. Request for imposition of provisional duty
17. The applicant requests for imposition of provisional anti-dumping duties at the
earliest. The need for provisional anti-dumping duty is evident from below –
i. The exporters from the subject countries are dumping the product under
consideration in India.
ii. The dumping margin is not only above de minimis, but also significant.
iii. The dumped imports are undercutting the prices of the domestic industry
and the undercutting is significantly positive during the proposed period of
investigation.
iv. The dumped imports have had a suppressing effect on the prices of the
domestic industry.
v. The domestic industry is suffering gross under-utilisation of capacities, and
is faced with significantly low levels of production, domestic sales and market
share due to the dumped imports.
vi. The domestic industry has faced accumulation of inventories.
vii. The domestic industry has incurred significant financial losses during the
viii. The cash flows and return on investment of the domestic industry are
heavily negative.
Thus, the subject imports have adversely impacted the performance of the domestic
industry in all respects. There is a clear need for imposition of provisional duties.
Such imposition of provisional anti-dumping duty is necessary to curb dumped
imports into the country and ensure that the position of the domestic industry is not
further deteriorated.
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PART I – IMPORTED PRODUCT INFORMATION
I. Complete description of alleged dumped goods, including information on

its size, quality, category and used of such goods along with any applicable
technical specifications or standards (national or international) and the ITC
(HS) Code, Basic Customs Duty and applicable cess, Existing Import Policy
(free / restricted / prohibited / imports through STE) and change in import
policy, if any, during the POI.
A. Product description
18. The product under consideration is “Trichloro Isocyanuric Acid” (hereinafter

referred to as TCCA). It is a chemical compound commonly used as a disinfectant,
bleaching agent, and water treatment chemical.
19. It is a white crystalline powder with a strong chlorine odour. TCCA is a powerful
oxidizing agent and is widely used in the swimming pools, as well as for industrial
water treatment and sanitation.
B. Unit of measurement
20. The product under consideration is sold by weight, and therefore, the unit of
measurement considered in the present application is kgs or MT.
C. Uses
21. TCCA is a disinfectant, algicide, and bactericide mainly for swimming pools and
dyestuffs. It is also used in following applications:
a. It is used as a bleaching agent in the textile industry.
b. It is a source of active chlorine, which is released gradually in the presence of
water.
c. It is effective against a wide range of microorganisms, including bacteria,
viruses, and fungi.
d. It is used to oxidize organic contaminants in water, making it an effective water
treatment chemical.
e. It is used to maintain water’s pH level and to keep it clear and sparkling.
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22. It is widely used in civil sanitation for pools and spas, preventing and curing
diseases in animal husbandry & fisheries, fruit & vegetable preservation, wastewater
treatment, as an algicide for recycled water in industry and air conditioning, in anti-
shrink treatment for woollens, for treating seeds and in organic chemical synthesis.
D. Manufacturing process
23. The process to manufacture TCCA can be divided into three parts:
a. Preparation of Sodium Salt of Cyanuric Acid:

24. First, cyanuric acid is taken in a vessel dissolved with water and caustic soda
lye at 20OC temperature. The mixture is mixed well for two hours and tested. This
slat of cyanuric acid is then transferred to a storage tank.
b. Chlorination of Cyanuric Salt:

25. The mixture prepared is transferred to the chlorine reactor where it is first
cooled down at 15OC and then required amount of chlorine is added to make a
slurry. This mix is cooled at 10OC, and sample is taken every hour for testing. If test
report from the sample is as per desired specifications, then the material is pumped
for filtration into RVF (Rotary Vacuum Filter) and the excess water is removed from
the wet cake. The wet cake is dried 90 OC temperature. This gives TCCA is a powder
form.
c. Granulation:
26. The powdered TCCA is transferred to the drum roll granulator where it is
prepared in granular form. Finally, the product moves to the vibrating screen where it
is sieved to obtain the finished product. This product containing a minimum of 90%
chlorine, is stored then packed and stored.
E. Tariff classification
27. The subject goods are classified under Chapter 29, heading 2933 of Schedule I
to the Customs Tariff Act, as under.
Tariff item Description of goods

2933 Heterocyclic compounds with nitrogen hetero-
atom(s) only
2933 69 Other
2933 69 10 --- Cyanuric acid and its salts :
10
2933 69 90 --- Other :
28. The customs classification may kindly be considered as indicative only and not
binding on the scope of the product under consideration for the proposed
investigations. Relevant extract of Schedule I to the Customs Tariff Act is enclosed
as Annexure 1.2.
29. It is requested that the complete HSN classification, and any other classification
which the product is being imported in may kindly be denoted in the duty table in any
recommendation made.
F. Customs duty
30. The subject goods attract a basic customs duty of 7.5% under Schedule I of the
Customs Tariff Act.
31. However, the product enjoys further concessions, under the Comprehensive
Economic Partnership Agreement (CEPA) between the India and Japan. The
effective rate of duty in respect of imports from various sources, over the last three
years is as below. The relevant screenshot of the concessional duty has been
enclosed as Annexure 1.3.
Year MFN Rates Japan

2019-20 7.5% 1.40%
2020-21 7.5% 0.70%
2021-22 7.5% 0%
2022-23 7.5% 0%
G. PCN methodology
32. No PCN has been proposed. The applicant does not believe there is any need
for framing a PCN. However, should the Authority require further segregated
information, the applicant would be pleased to provide the same.
II. Country(ies) of origin of the alleged dumped goods.
33. The present application is in respect of imports of subject goods originating in

or exported from People’s Republic of China and Japan.
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III. Details of concluded or ongoing investigations, if any, relating to the

PUC.
34. There are no ongoing or concluded investigation relating to the product under
consideration.
IV. The proposed Period of Investigation (POI) and the Injury period. If the
proposed POI is not a period 12 months, then justification for the same.
35. The applicant proposes 1st April 2022 to 31st March 2023 as the period of
investigation. The injury period may kindly be considered as April 2019 – March
2020, April 2020– March 2021, April 2021– March 2022 and the period of
investigation. The period of investigation proposed by the applicant is consistent with
Rule 5(3A) of the Anti-Dumping Rules and Trade Notice 04/2021 dated 16 th June
2021.
V. Country-wise Volume, value and average CIF value of the subject goods
imported into India, from all countries whether alleged to be dumped or not,
for the past three years and the proposed POI and the source of information
thereof.*
36. The country-wise volume, value and average CIF price of the subject goods is
enclosed herewith. Since transaction-wise import data from DGCI&S is not
accessible to the applicant, and the product does not have a dedicated HS code, the
applicant has relied upon secondary source data. The applicant has not relied upon
published DGCI&S data since the published data for the product under consideration
also includes the imports of the raw material, cyanuric acid, into India.
37. A statement showing country-wise volume, value and price of imports is

VI. Name(s), address(es), phone numbers and functional email ids of the
following:
a. Known producers/exporters of the alleged dumped goods in each of the

subject countries.
12
38. A list of known producers and exporters of the subject goods is enclosed
herewith as Annexure 1.5.
b. Known importers of the alleged dumped goods in India and/or the

associations thereof.
39. A list of known importers of the subject goods is enclosed herewith as

Annexure 1.6.
c. Known users of the alleged dumped goods in India and/or the

40. A list of known users of the subject goods is enclosed herewith as Annexure
1.7.
d. Other domestic producers of the like product in India and/or the

41. There are no other domestic producers or associations for the like product.
PART II – INDIAN INDUSTRY PROFILE
I. Provide the following relating to the Indian producers of the subject

goods who are filing the Application:
a. Functional email id, address and phone numbers of the Regd./Head Office
including the Name, email id and mobile number of its contact person.
42. The present application is filed by Bodal Chemicals Limited. The details of
corporate office of the applicant are as under.
Bodal Corporate House,

Opp. Venetian Villa, Nr. Anand Niketan School,
Nr. Shilaj Circle, off. S P Ring Road, Thaltej,
Ahmedabad-380059, Gujrat, India
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43. The applicant has authorised TPM Consultants for the present petition, whose
details are given below.
TPM Consultants
J-209 Saket, New Delhi-110017
Phone – 49892200; Mobile No.: [ +91 9650 80 7634 ]
Email: akg@tpm.in; aastha@tpm.in; ga@tpm.in; nishtha@tpm.in
It is requested that all communications may kindly be addressed to the authorized
consultants.
44. Letter from the applicant requesting initiation of the anti-dumping investigation
and imposition of anti-dumping duty on the subject goods imported from the subject
countries is enclosed as Annexure 2.1
b. Name, Functional email id, address and phone numbers of the

manufacturing unit(s) of the subject goods including the Name, email id and
mobile number of its contact person.
45. The details of manufacturing plant are as follows:

338, Village NEJA,
Tal. Khambhat, Dist. Anand-388 620,
Gujarat, India.
II. Name(s), Functional email ids and address(es) of all Indian producers
including the Applicant(s) along with their production volume of subject goods
during the injury period (POI and past three financial years in continuity). Also
indicate the status of each such producer (i.e. whether supporter, opposer or
neutral).
46. Not applicable since BCL is the sole producer of the subject goods in India.
III. The Supporter must provide (relating to the subject goods) the Installed
capacity with supporting evidence, production quantity and Sales Volume and
Value (Separately for Domestic, Export and Captive consumption).
47. Not applicable since BCL is the sole producer of the subject goods in India.
14
IV. Provide the details of the concerned line ministry of department in Govt.
of India for the subject goods.
48. The product under consideration falls under the purview of the Department of
Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, Government of
India. The details of Ministry are as follows:
Department of Chemicals and Petrochemicals,

Ministry of Chemicals & Fertilizers,
501 A, A-wing,
Shastri Bhawan, New Delhi-110001
Email – sec.cpc@nic.in
Website – https://chemicals.gov.in/
V. Provide the following details relating to the end-use product(s)

manufactured out of the subject goods
a. Concerned line ministry and department in Govt. of India.
49. As mentioned hereinabove, the product under consideration is being used as a

disinfectant for swimming pools and dyestuffs and is also used as a bleaching agent
in the textile industry. Therefore, the line ministry for the end-use products in Ministry
of Textiles and Ministry of Consumer Affairs, Food and Public Distribution.
Ministry of Textiles
Udyog Bhawan,
Dr Maulana Azad Road,
New Delhi,110011
Phone No: +011 23061769
Email Id: secy-textiles@nic.in
Department of Consumer Affairs

Ministry of Consumer Affairs, Food and Public Distribution
Krishi Bhawan, New Delhi – 110001
Phone no: 011- 23782807
b. The impact of the duty on the end-use product(s) (quantify such impact)
15
50. The impact of the proposed anti-dumping duty on the end-use product is
VI. Whether the product(s) manufactured by the Applicants are commercially

and technically substitutable for the alleged dumped goods.
51. There are no known differences in the product produced by the applicant and
the goods imported from the subject countries as both the products are comparable
in all terms including, characteristics such as physical & chemical characteristics,
manufacturing process & technology, functions & uses, product specifications,
pricing, distribution & marketing and tariff classification. Both products are technically
and commercially substitutable and the consumers use them interchangeably. Thus,
the subject goods produced by the applicant are like article to the goods imported
from the subject country as defined under Rule 2(d) of the Anti-Dumping Rules.
VII. Subject goods (including size, type, range, models) that petitioner(s)
produces.
52. The technical data sheet of the like article produced by the domestic industry is
enclosed as Annexure 2.3. The product is produced only in one form i.e., granular.
VIII. (a) Do any of the petitioner(s) import the subject goods. If Yes, provide
the country-wise value and volume of such imports from all countries. Also
provide the detailed reasons for importing the subject goods. Give details of
selling price to the end-users of such imported goods including a list of such
end users.
53. Not applicable as the applicant has not imported the product under
consideration from the subject countries.
(b) Are any of the Petitioners related to the exporter or importer of the alleged
dumped article? If yes, provide the country-wise value and volume of such
imports from all countries relating to such exports/imports so made by that
related entity.
54. Not applicable, as the applicant is not related to any exporter of the subject
goods in the subject countries or importer of the subject goods in India.
16
IX. Whether the concerned product of the applicant is like-article of subject

goods in terms of AD Rules. Also indicate any difference in the production
process employed by the petitioner(s) and the foreign producers. Quantify the
impact of such differences, if any, on cost and/or prices.
55. There is no known material difference in the technology adopted by the

applicant and that adopted by the producers in the subject country. The technology
adopted by the domestic industry is comparable with the technology adopted by the
producers of the subject goods in the subject countries. However, every producer
fine-tunes its production process based on necessities and available facilities.
56. As explained hereinabove, there are no known differences in the product under
consideration produced by the applicant and the goods imported from the subject
countries. The subject goods produced by the applicant is technically and
commercially substitutable. Thus, the subject goods produced by the applicant are
like article to the goods imported from the subject country as defined under Rule 2(d)
of the Anti-Dumping Rules.
X. Provide the details of end-users/ consumers of like product in India

including sales quantity and value for each of them. Quantify the impact of
duty on cost of the end-product, if possible, with detailed calculations.
57. As mentioned hereinabove, TCCA is used as a disinfectant and bactericide for

swimming pools and dyestuffs and is also used as a bleaching agent in the textile
industry. The impact of proposed duty on the consumers is miniscule. The relevant
calculations are enclosed as Annexure 2.2.
XI. Details of volume losses during the injury period due to:
a. Shutdown (normal/maintenance/ planned and abnormal/ unplanned) and

reasons therefore along with stock position during the shutdown.
a. The details of plant shutdown are enclosed as Annexure 2.4.
b. Force-majeure situations like flood, earthquake, fire, other natural

calamities, etc.
58. Barring Covid related issues, and collapse of consumption in the past leading
to absence of market demand, there were no force majeure situations which forced
the applicant to shut down its plant.
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PART III – EVIDENCE OF DUMPING
I. Provide the estimates of normal value of the subject goods in subject

countries as below:
a. If domestic sales can be used, then provide price lists, commercial / sales
invoices, trade journals, etc. indicating domestic prices.
OR
b. Evidence of export price to an appropriate third country.
OR
c. Cost of Production (COP) of the subject goods in the country of
export/origin for construction of normal value (provide source of data and
calculation of such COP).
A. Estimate of normal value – China
59. As regards China, the applicant submits that the same is required to be
considered as a non-market economy. It is submitted that normal value means the
price of the like article in the domestic market of the exporting country in the ordinary
course of trade. However, in case of China, Annexure-I to the rules provides as
follows-
“7. In case of imports from non-market economy countries, normal value shall
be determined on the basis of the price or constructed value in a market
economy third country, or the price from such a third country to other countries,
including india, or where it is not possible, on any other reasonable basis,
including the price actually paid or payable in India for the like product, duly
adjusted if necessary, to include a reasonable profit margin. An appropriate
market economy third country shall be selected by the designated authority in a
reasonable manner [keeping in view the level of development of the country
concerned and the product in question] and due account shall be taken of any
reliable information made available at the time of the selection. Account shall
also be taken within time limits; where appropriate, of the investigation if any
made in similar matter in respect of any other market economy third country.
The parties to the investigation shall be informed without unreasonable delay
18
the aforesaid selection of the market economy third country and shall be given
a reasonable period of time to offer their comments.
8. (1) The term “non-market economy country” means any country which the
designated authority determines as not operating on market principles of cost
or pricing structures, so that sales of merchandise in such country do not reflect
the fair value of the merchandise, in accordance with the criteria specified in
sub-paragraph (3).
(2) There shall be a presumption that any country that has been determined
to be, or has been treated as, a non-market economy country for purposes of
an anti-dumping investigation by the designated authority or by the competent
authority of any WTO member country during the three year period preceding
the investigation is a non-market economy country.
Provided, however, that the non-market economy country or the concerned
firms from such country may rebut such a presumption by providing information
and evidence to the designated authority that establishes that such country is
not a non-market economy country on the basis of the criteria specified in sub-
paragraph (3).
(3) The designated authority shall consider in each case the following criteria
as to whether:
(a) the decisions of concerned firms in such country regarding prices,

costs and inputs, including raw materials, cost of technology and labour,
output, sales and investment, are made in response to market signals
reflecting supply and demand and without significant State interference in
this regard, and whether costs of major inputs, substantially reflect market
values;
(b) the production costs and financial situation of such firms are subject to
significant distortions carried over from the former non-market economy
system, in particular in relation to depreciation of assets other write-offs,
barter trade and payment via compensation of debts;
(c) such firms are subject to bankruptcy and property laws which
guarantee legal certainty and stability for the operation of the firms, and
(d) the exchange rate conversions are carried out at the market rate :
Provided, however, that where it is shown by sufficient evidence in writing

on the basis of the criteria specified in this paragraph that market
19
conditions prevail for one or more such firms subject to anti-dumping

investigations, the designated authority may apply the principles set out in
paragraphs 1 to 6 instead of the principles set out in paragraph 7 and in
this paragraph.”
60. Further, Article 15 of China’s Accession Protocol provides as follows –
“Article VI of the GATT 1994, the Agreement on Implementation of Article VI of

the General Agreement on Tariffs and Trade 1994 ("Anti-Dumping Agreement")
and the SCM Agreement shall apply in proceedings involving imports of
Chinese origin into a WTO Member consistent with the following:
In determining price comparability under Article VI of the GATT 1994 and the
Anti Dumping Agreement, the importing WTO Member shall use either Chinese
prices or costs for the industry under investigation or a methodology that is not
based on a strict comparison with domestic prices or costs in China based on
the following rules:
(i) If the producers under investigation can clearly show that market
economy conditions prevail in the industry producing the like product with
regard to the manufacture, production and sale of that product, the
importing WTO Member shall use Chinese prices or costs for the industry
under investigation in determining price comparability;
(ii) The importing WTO Member may use a methodology that is not based
on a strict comparison with domestic prices or costs in China if the
producers under investigation cannot clearly show that market economy
conditions prevail in the industry producing the like product with regard to
manufacture, production and sale of that product.
In proceedings under Parts II, III and V of the SCM Agreement, when
addressing subsidies described in Articles 14(a), 14(b), 14(c) and 14(d),
relevant provisions of the SCM Agreement shall apply; however, if there are
special difficulties in that application, the importing WTO Member may then use
methodologies for identifying and measuring the subsidy benefit which take into
account the possibility that prevailing terms and conditions in China may not
always be available as appropriate benchmarks. In applying such
methodologies, where practicable, the importing WTO Member should adjust
such prevailing terms and conditions before considering the use of terms and
conditions prevailing outside China.
20
The importing WTO Member shall notify methodologies used in accordance

with subparagraph (a) to the Committee on Anti-Dumping Practices and shall
notify methodologies used in accordance with subparagraph (b) to the
Committee on Subsidies and Countervailing Measures.
Once China has established, under the national law of the importing WTO
Member, that it is a market economy, the provisions of subparagraph (a) shall
be terminated provided that the importing Member's national law contains
market economy criteria as of the date of accession. In any event, the
provisions of subparagraph (a)(ii) shall expire 15 years after the date of
accession. In addition, should China establish, pursuant to the national law of
the importing WTO Member, that market economy conditions prevail in a
particular industry or sector, the non-market economy provisions of
subparagraph (a) shall no longer apply to that industry or sector.”
61. Article 15(b) implies that provisions of Clause 15(a)(ii) expire 15 years from
date of China’s Accession, that is, in December 2016. However, the provisions of
Article 15(a)(i) are still applicable and must be considered for determination of
normal value in China. Accordingly, the Chinese produces must be called upon to
show that, consistent with the provisions of Article 15(a)(i), market economy
conditions prevail in the industry producing the like product with regard to the
manufacture, production and sale of that product under consideration, so that the
Designated Authority can use Chinese prices or costs for the industry under
investigation. A detailed note is enclosed herewith as Annexure 3.1, which lists the
parameters relevant for establishing that the market economy conditions prevailed in
the industry producing the like article with regard to manufacture, production and
sale of the product under consideration. Unless responding Chinese exporters
establish on the basis of detailed criteria mentioned in the enclosed annexure, the
Designated Authority is not required to use Chinese prices or costs for the purpose
of determination of normal value.
Adoption of domestic costs and prices – Determining Standards
62. Should the Designated Authority consider that all the provisions of Article 15
are not available any longer and the normal value is required to be determined in
accordance with provisions of Para 1-6 of the Rules, the applicant submits that the
Chinese domestic costs and prices nevertheless cannot be accepted unless the
following tests are passed by the Chinese exporters. While in normal circumstances
21
there may be presumption that the domestic costs and prices are reasonable, in a
situation where an economy was considered a non-market economy and difficulties
in establishing normal value on the basis of domestic prices and costs was well
established and accepted, the applicant submits that their domestic price and cost
cannot be considered unless the Chinese exporters demonstrate that the costs and
domestic prices are appropriate and reasonably reflect the costs and price of the
product under consideration. Following standards/guidelines are relevant in this
regard.
a. Domestic costs and prices cannot be adopted in a situation where there

is state interference in determination of costs and prices – In a situation
where the production and sale of a product was substantially with a company
having significant state control, it must be established that the costs and prices
of the company are not completely free from possibilities of state interference.
In a situation where one or more shareholders in the company - either directly
or indirectly - are state owned or controlled entities, it follows that there are
possibilities of distortions in the costs and prices because of such past
ownership. The Chinese exporters must therefore establish that the costs and
prices are not distorted due to past ownership of the company by state owned
or controlled entities. Further, it is not only the question of state owned
interference in the costs and prices in the past, but also possibilities of such
state interference in the future. Thus, it must be established by the Chinese
exporters that their costs and prices were neither influenced nor are likely to be
influenced by the state ownership in the company.
b. Domestic costs and prices cannot be adopted unless the responding

Chinese exporters establish that the prices of major inputs substantially
reflect market values – “substantially reflect market values” has been widely
interpreted to mean that the price of these inputs must be comparable to the
prices prevailing in the international market. The mere fact that such prices are
comparable to the price prevailing in China is grossly insufficient. In a situation
where the responding Chinese producers claim raw material prices
substantially lower than the Indian and international raw material prices, it must
be concluded that price of inputs reported by the responding exporters are
distorted. In a free market economy, there is no reason why prices of some
inputs in a market shall be substantially different from the prices prevailing in
the international market.
22
c. Domestic costs and prices cannot be adopted unless the responding

exporter establish that their books are audited in line with Chinese GAAP
and international accounting standards – Domestic costs and prices must
be rejected in such situations where Chinese exporters are unable to establish
that their books are consistent with Chinese GAAP and International
Accounting Standards (IAS). The requirement on insisting compliance with
International Accounting Standards is to ensure accuracy and adequacy of
revenues and expenses, assets and liabilities expressed in the annual report.
d. Appropriateness of costs due to organizational structure - The authority is

also requested to kindly focus on the appropriateness of the costs claimed by
the responding exporters due to organizational structure. In the following
situations, it is quite likely that the costs claimed by the exporters are distorted.
i. Multi product companies – In a situation where a producer is producing

several products at one location, the possibility of cost distortions are
quite high. The exporter must therefore establish that the costs claimed
are reasonable and appropriate and the same are not distorted due to the
fact that several products have been produced at the same location.
ii. Multi location companies - in a situation where a company is having
manufacturing facilities at multiple locations, the authority may kindly
examine whether the exporter has maintained separate audited accounts
for each location. If separate audited accounts are not available for each
location, it follows that the costs may be highly distorted. If the exporter
has not maintained separate audited account for each location, possibility
of costs distortions in the accounts reported to the authority shall be
significantly high.
e. Domestic costs and prices cannot be adopted even if costs are distorted
due to one of the parameters – Domestic costs and prices cannot be adopted
unless the responding Chinese exporters establish that there costs is not
distorted even in one of the parameters. Even the principles of best available
information cannot be applied to a particular element of costs. Principles of best
available information must then be applied to the entirety of costs in a situation
where the costs are distorted due to significant state control over the factors of
production and sale.
f. Onus/obligations – In a situation where the costs and domestic prices of the

product are significantly different/distorted due to significant state control over
23
the factors of production and sale, it is not for the Authority to establish that the
responding companies’ data cannot be accepted for determination of normal
value. It is for the Chinese exporters to establish that their data can be adopted
for determination of normal value and consequently individual dumping margin.
g. Response from Group as a whole – Individual normal value cannot be

determined unless the responding company and its group as a whole have filed
questionnaire response. If one or more companies forming part of the group
and involved either in production or in sale or any activity connected therewith
has not filed the response, individual normal value and consequently dumping
margin must be rejected.
h. Transformation – In a situation where the current shareholders have not set

up their production facilities themselves but have acquired the same from some
other party, including a state-owned entity, individual normal value cannot be
determined unless process of transformation has been completely established
through documentary evidence and it has been demonstrated that the
transactions had in fact taken place at market values.
63. The responding exporters must establish that the elements of costs referred to
in the context of determination of normal value are appropriately and completely
reflected in the records kept by the exporter or producer under investigation. In case
it is found that some elements of costs are not appropriately and completely reflected
in the records kept by the exporter or producer under investigation, the claim of
normal value should be rejected.
64. The provisions of Para 1-6 of Annexure I should be followed for determination
of normal value only if the responding Chinese companies establish that their costs
and price information is such that individual normal value and dumping margin can
be determined. If the responding Chinese companies are not able to demonstrate
that their costs and price information can be adopted, the normal value should be
calculated in terms of provisions of Para 7 and 8 Annexure – I.
65. Since the Chinese producers are not entitled for market economy treatment,
the Para 7 of Annexure – I to the Rules should be followed for determination of
normal value. As per Para 7, normal value in China can be determined on any of the
following basis:
a. the price in a market economy third country;
b. constructed value in a market economy third country;
24
c. the price from such a third country to other country, including India;
d. the price actually paid in India, adjusted to include a reasonable profit
margin;
e. the price payable in India, adjusted to include a reasonable profit margin.
66. The first option under the provision is the price of the product under
consideration in the domestic market of the market economy third country. This price
can be the selling price of a producer in a market economy third country or the price
at which a consumer in that country has bought the material from either a domestic
supplier or by an international supplier, that is, consumption price. Further, such
price should be in the ordinary course of trade, that is, such price must be above
estimated cost of production.
67. In the present case, the applicant has determined the normal value based on
the price in a market economy third country. For this purpose, the applicant has
considered the exports of the product under consideration from India to a third
country. In selection of an appropriate third country, it must be considered that the
producers of the subject goods are concentrated only in a few countries. Apart from
the subject countries, the subject goods are produced in USA and Spain. Therefore,
the appropriate market economy third country can only be USA or Spain. Since the
applicant itself has exported the subject goods in USA, it has taken the landed price
of the goods exported from India to USA to determine the normal value. The normal
value so determined is enclosed as Annexure 3.2. Since normal value has been
determined based on the price in a market economy third country, other basis of
determination are not relied upon.
B. Estimate of normal value – Japan
68. The applicant made efforts to obtain the comparable price for like product, in
Japan. However, the price lists or commercial invoices for sales in the local market,
being commercially sensitive and confidential in nature, were not readily available to
the applicant. Further, the evidence with regard to domestic selling price prevailing
during the proposed period of investigation was also not available. Accordingly, the
normal value was required to be determined on alternative basis.
69. Since the applicant does not have access to the actual cost of production of the
producers in Japan, the applicant has determined the cost of production based on
the best available information at this stage. For this purpose, the applicant attempted
to identify the price of raw materials in Japan. The applicant considered the import
25
price of caustic soda in Japan based on information available on Trade Map. Since
the prices of the other raw materials and utilities, as well as other factors of cost of
production was not available, the same has been determined on the basis of
available information. Lastly, an addition was made towards selling, general and
administrative expenses and addition of reasonable profits. The relevant calculation
is enclosed as Annexure 3.2.
II. Adjustments for normal value at ex-factory level (supported with

evidence).
70. The applicant has determined normal value based on information reasonably
available to it. The normal value so determined is enclosed as Annexure 3.2.
III. Normal Value at ex-factory level (after adjustments).
71. The normal value determined after adjustments has been enclosed as
Annexure 3.2.
C. Estimates of net export price
Provide the following information, country-wise, with respect to the Net Export
Price of the product for the POI.
1. Average Export Price of India and its basis (e.g. FOB, CIF, FOR, etc)
72. For determination of export price, the applicant has taken the CIF price of the
subject goods based on the secondary source data, and thereafter, adjusted it to
arrive at ex-factory price. The average export price is enclosed as Annexure 3.3.
2. Adjustments for Export Price at ex-factory level (supported with evidence)
73. The applicant has made the following adjustments to determine the ex-factory
export price:
a. Ocean freight
b. Marine insurance
c. Commission
d. Bank charges
e. Port expenses
f. Inland freight
26
74. The evidence of adjustment is enclosed as Annexure 3.4
3. Net export price (after adjustments)
75. The calculation of the net export price is enclosed as Annexure 3.3.
D. Estimates of dumping margin
76. Considering the normal value and the export price of the product under
consideration determined as discussed above, the dumping margin has been
calculated and enclosed as Annexure 3.5. Both the normal value and the export
price pertain to the same period and have been calculated at ex-factory level. There
are no known differences in the conditions and terms of sale. Thus, the comparison
undertaken by the applicant constitutes a fair comparison.
77. As can be seen from Annexure 3.5, the exporters from the subject countries
are dumping the product under consideration in the Indian market, and the dumping
margin for the subject countries is not only positive, but also significant. The table
below shows country-wise dumping margin determined by the applicant.
Dumping margin Dumping margin

Country
(USD/MT) %
China 1,306 78%
Japan 1,293 62%
PART IV – EVIDENCE OF INJURY
A. Preliminary submissions
a. Cumulative assessment of injury

78. Para (iii) of Annexure – II of the Anti-Dumping Rules provide that in case
imports of a product from more than one country are being simultaneously subjected
to anti-dumping investigation, the Designated Authority will cumulatively assess the
effect of such imports, if the conditions specified therein are met. Followings are
relevant in this regard:
27
i. The margin of dumping from each of the subject country is more than two
percent;
ii. The volume of imports from each of the subject country is more than three
percent of the total imports;
iii. A cumulative assessment of the effect of imports is appropriate in the light
of the conditions of competition between the imported products and the like
domestic product.
a. The products manufactured by the exporters in the subject countries
have inter-se comparable properties and are commercially and technically
substitutable and are used for the same applications in India.
b. The products supplied by the exporters from the subject countries and
that manufactured by the domestic industry have comparable chemical
properties, and are commercially and technically substitutable, being used
for the same applications in India.
c. The goods imported from the subject countries and that sold by the
domestic industry are being marketed to the same segment of the
customers during the same time period.
d. The imports from subject countries are competing in the same market
as the subject goods produced in India.
In view of the above, the applicant submits that cumulative assessment of the effects
of imports is appropriate.
b. Assessment of demand / apparent consumption

79. The demand has been quantified as the sale of the domestic industry and
imports into India. It would be seen that the demand for the subject goods declined in
2020-21 but increased gradually thereafter and was the highest in the proposed
c. Nature of injury suffered

80. The situation of the domestic industry is grim. Despite being the sole producer
of the subject goods in the Indian market, the domestic industry is unable to survive
and compete with the dumped imports. The domestic industry is suffering both
volume and price injury due to high import volumes and low import prices. The
following is relevant in this regard:
a. The imports are significantly undercutting the prices of the domestic industry in
the proposed period of investigation.
28
b. The imports are priced below the variable cost of the domestic industry. This
means that it is not possible for the domestic industry to compete with the import
price. This creates a demand for the imported goods.
c. Despite the presence of the domestic industry, the imports have dominated the
entire market. They constituted [ 99 ] % of the demand in the country and only
slightly decreased in 2021-22 after increasing again in the proposed period of
investigation where they constitute [ 94 ] % of the market share.
d. The volume of imports from the subject country was [ 1,196 ] % of the total
Indian production in the beginning of the injury period and is [ 556 ] % in the
proposed period of investigation. This clearly shows that the exporters are flooding
the Indian market and drive out the domestic industry. The only reason the volume of
imports reduced during 2020-21 was due to logistics and supply chain issue. When
there is sufficient capacity in the country to meet the increasing demand, there
should be no reason for the imports to be more than [ 5.5 ] times the production in
the country.
e. In 2020-21 when the volume of imports decreased due to the container crisis,
the price undercutting was the highest. This shows that the exporters have purposely
reduced their prices drastically to in order to maintain their share in the Indian
market.
f. The domestic industry has a capacity utilisation of only [ 15.57 ]% of the
installed capacity and [ 55.25 ] % of the deployed capacity. The imports have forced
the domestic industry to reduce its capacity utilisation over the injury period.
g. It would be seen that if the domestic industry was able to achieve a higher
capacity utilization, it would have been able to recover a part of its cost at least, and
improve its profitability. However, such is the plight of the domestic industry that it
even if it wanted to increase its capacity utilisation, it will not be able to compete with
the current landed price which is below the variable cost. Thus, in order to cut down
its losses, the applicant had no option but to close down its operations on [ 12 th
January 2023 ].
81. Thus, the situation of the domestic industry can improve only if the dumping by
Chinese producers is addressed, and imports occur at undumped prices.
B. Volume effect of dumped imports
a. Significant increase in imports during the proposed period of investigation

82. Prior to the commencement of production by the domestic industry, the Indian
market was entirely being catered by imports. The applicant anticipated that the
imports would gradually reduce over the years. However, although the imports
29
declined between 2020-21 and 2021-22, that was due to decline in demand, as is
established by significant increase during the proposed period of investigation. The
imports reduced during 2020-21 because of collapse of consumption owing to Covid
related situations. The imports increased in 2021-22 with some increase in
consumption but remained low due to Covid related situations. However, the
situation changed during the period of investigation. In fact, the imports from the
subject countries were the highest during the proposed period of investigation.
b. Significant volume of imports in relation to production and consumption

83. The volume of subject imports has increased significantly in relation to
domestic consumption and production as well, after declining in 2020-21. During the
period of investigation, the volume of imports in relation to domestic consumption
have increased by 234% as compared to the previous year. Further, the volume of
imports in relation to domestic production has increased by 12% as compared to the
previous year. The imports have continued to increase, despite the fact that the
domestic industry has sufficient capacity to cater to the entirety of the demand.
Volume of imports in
Unit 2019-20 2020-21 2021-22 2022-23
relation to:
Production % [ 1,196 115 166 556
Consumption % 99 99 84 94 ]
84. In this regard, it is also relevant to note that the imports are high in relation to
production and consumption, despite the domestic industry having capacity to cater
to the entirety of the demand. Even though the domestic industry has a capacity of
[ 6,000 ] MT, as against a demand of [ 5,545 ] MT, [ 94 ]% of the market is being
catered to by the imports.
85. Further, though the capacity of the domestic industry is [ 1.16 ] times of the
volume of subject imports, the imports are [ 5.56 ] times the production of the
domestic industry. This clearly shows that the imports have flooded the market, and
are preventing the domestic industry from utilizing its capacities or gain a stable
footing in the market.
c. Share of subject imports in total imports

86. The imports from the subject countries constitute 100% imports of the product
under consideration in India. This is because the production of the product under
consideration is limited only to a handful of countries. Apart from China and Japan,
Spain and the USA have the technology to produce the subject goods.
30
d. Steep rate of increase in imports

87. The imports have increased drastically in the proposed period of investigation.
As can be seen from the table below, after declining in 2020-21, the imports
recovered slightly in 2021-22. Thereafter, the imports have increased sharply by
149% in the proposed period of investigation.
Particulars Unit 2019-20 2020-21 2021-22 POI

Subject imports MT 4,354 1,679 2,088 5,194
Increase % -61% 24% 149%
C. Price effect of dumped imports
a. Significant price undercutting

88. The subject imports are undercutting the prices of the domestic industry and
the price undercutting was positive and significant during the proposed period of
investigation. The exporters have purposely reduced their prices in order to increase
their hold in the Indian market. As a result, the domestic industry has been unable to
gain volumes in the market.
b. Price suppression
89. The subject imports have continuously caused strain on the prices of the
domestic industry as they were priced lower than the selling price of the domestic
industry throughout the injury period. In 2020-21, even though the cost of sales of
the domestic industry decreased by 11%, the exporters reduced their prices by 13%,
forcing the domestic industry to reduce its prices as well. In 2021-22, even though
the exporters increased their prices by 61% from the previous years, it was still
below the prices of the domestic industry. However, even then, the domestic industry
was able to improve its volume and prices.
90. However, in the proposed period of investigation, the cost of sales of domestic
industry sharply increased by 49% from ₹ [ 1,78,456 ] per MT to ₹ [ 2,66,056 ] per
MT. However, despite increase in costs, the exporters reduced their prices and the
same were below the cost of sales. This created a strain on the prices of the
domestic industry, and it was able to increase its prices by only 11%, which was not
commensurate with the increase in cost. This clearly shows that the exporters have
prevented the domestic industry from increasing its selling prices which otherwise
should have occurred.
31
300,000
250,000
200,000
150,000
100,000
50,000
2019-20 2020-21 2021-22 POI
Cost of sales Selling price Landed price
Particulars Unit 2019-20 2020-21 2021-22 POI

Cost of sales ₹/MT [ 2,40,617 2,14,300 1,78,456 2,66,056 ]
Indexe
Trend 100 89 74 111
d
Selling price ₹/MT [ 1,45,514 1,43,094 1,88,495 2,09,987 ]
Indexe
Trend 100 98 130 144
d
Landed price ₹/MT 1,17,789 1,03,046 1,64,753 1,64,996
Indexe
Trend 100 87 140 140
d
c. Reducing delta over raw material cost

91. The major raw materials used for the production of subject goods are cyanuric
acid and caustic soda lye. There was a significant increase in prices of cyanuric acid
over the injury period. In 2020-21, the cost of raw material consumed decreased and
the landed prices also showed a decline. Thereafter, in 2021-22, the cost of the raw
materials increased and the landed prices also showed an increasing trend.
However, in the proposed period of investigation, the prices of cyanuric acid have
increased by 70% during proposed period of investigation, when compared with
previous year, whereas landed price have declined by 1.12% in the same period. As
a result, the domestic industry could not increase its prices commensurate with the
increase in raw material cost due to the high raw material prices. However, as the
32
table would show, despite the increase in prices, the exporters have not increased
their prices. It is clear that the exporters are trying to drive the domestic industry out
of the Indian market.
Caustic Cost of raw Landed

Cyanuric Landed
Period Soda Lye materials price over
acid price
Prices consumed RM Cost
2019-20 [ 41,781 71,814 96,940 1,17,789 [ -20,849
2020-21 19,937 59,098 67,721 1,03,046 -35,325
2021-22 36,074 56,772 71,225 1,64,753 -93,528
2022-23 54,669 96,772 1,20,994 ] 1,64,996 -44,002 ]
d. Impact of landed price on selling price and sales volume

92. Even when the import volume of the product under consideration declined due
to decline in demand (because of Covid), the domestic industry was not able to
compete with the imports as such. In 2020-21, when the volume of imports
decreased, the importers reduced their prices by 13%. Naturally, the domestic
industry was not able to compete with such low prices. The market share of the
domestic industry during this period was only [ 1 ]%. However, in 2021-22, the
volume of imports reduced but the landed price increased by 60%. As a result, the
domestic industry was also able to increase its prices from ₹ [ 1,43,094 ] per MT to ₹
[ 1,88,495 ] per MT. In the period of investigation, since the landed price declined,
despite increase in raw material cost, the prices of the domestic industry also
underwent a strain, leading to significant losses to the domestic industry. This
indicates that the domestic industry will survive in the market only in a situation when
the dumping is addressed.
D. Economic parameters relating to the domestic industry
a. Inability to utilize production capacities

93. The domestic industry has been in production since 2017.Due to the multiple
shutdowns, the domestic industry had only [ 28 ]% of its capacity available. . Despite
this the domestic industry has been able to utilise only [ 55.25 ]% of its deployed
capacity during the proposed period of investigation. Moreover, it would be seen that
the deployed capacity has further reduced in the proposed period of investigation
from [ 2,055 ] MT in 2021-22 to [ 1,691 ] MT due to continuous dumping.
94. Further, as mentioned above, the domestic industry was forced to shut down its
plant on [ 12th January 2023 ] and has been unable to restart it during the period of
33
investigation. The shutdown itself demonstrate that there is significant adverse effect
of dumping on the domestic industry and there is a critical need for imposition of
duty.
95. Further, the domestic industry had set up a plant, envisaging that it would be
able to operate the same at a capacity utilization of [ 80 ]%. The actual production by
the domestic industry is only [ 19 ]% of the production that it would have achieved at
[ 80 ]% utilization. Further, if the capacity utilization for domestic sales is seen, the
same is [ 6 ]% of the installed capacity. Thus, the domestic industry has been able to
achieve the capacity utilization of [ 15.57 ]% of the installed capacity because of
export sales.
b. Low volume of domestic sales

96. Despite ample demand in the market and having the capacity to meet it, the
domestic industry has hardly been able to sell its product. The share of the domestic
industry in the demand is a meagre [ 6 ]% and it has sold only [ 37 ]% of its
production in the domestic market, that too at a loss. As against this, the volume of
imports is significant. It is emphasized that the lack of sale is not attributable to any
quality concerns or other such product-linked concerns, but owing to incompetitive
price of imports.
6,000
5,000
4,000
3,000
2,000
1,000
-
2019-20 2020-21 2021-22 POI
Total Imports Domestic Sales
c. Domestic industry unable to gain a reasonable market share
34
97. The domestic industry set up a plant inspired by the Make in India vision of the
Government, and since the country was entirely dependent on imports for the
product under consideration. The plant was set up to reduce the dependency on
imports and make India Atmanirbhar. However, even while having a domestic
industry set up a plant to the entire Indian demand, it was forced to shut down its
operations in the proposed period of investigation due to dumping with a market
share of [ 6 ]%.
98. As mentioned above, the domestic industry had envisaged operations at [ 80 ]

% capacity utilization. At such utilization as well, the domestic industry would have
been able to command a share of [ 87 ]% of the total demand. However, the imports
have accounted for [ 94 ]% of the market, leaving the domestic industry with hardly
any market share.
d. Accumulation of inventories
a. Due to constant pressure of dumped imports, the domestic industry has not
been able to dispose of its production sufficiently. As a result, as mentioned above
the domestic industry was forced to (a) undertake exports at losses to dispose of
their inventories and avoid piling up, (b) regulate the production rate and contain the
same. The domestic industry exported nearly [ 64 ]% of its production during the
proposed period of investigation. Despite this, its inventories have piled up in the
proposed period of investigation. While the inventories are showing a declining trend
over the period, there is still accumulation of inventories as evident from the fact that
the inventories are equivalent to [ 100 ]% of the domestic sales, which means, the
domestic industry has been forced to store a volume [ equivalent ] to what it sold. In
fact, in the beginning of the injury period, the domestic industry was exporting more
than it produced during the year due to leftover stock from the previous year.
e. Significant inventory holding period

99. The average inventory holding period of the domestic industry is too high to
allow sustainable operations. At the present production and sales level, the average
inventory holding period of the domestic industry is [ 136 ] days. Since the domestic
industry was unable to sell the product in the market and was forced to store
significant volumes, it was forced to shut down its plant intermittently to regulate
inventories.
f. Significant losses and cash losses over the period of operation

100. The domestic industry is suffering significant financial losses. It was in losses in
the first two years of the injury period as well, since the imports dominated the
35
market. However, in 2021-22, the domestic industry managed to earn slight profits
since the market share of imports declined during this period, allowing domestic
industry an opportunity to supply slightly higher volumes. However, even then, its
profitability was low, and it earned a return of only [ 6 ]% on capital employed.
Moreover, this was possible only because the exporters reduced their volume of
imports and increased prices.
101. In the proposed period of investigation, the profitability of the domestic industry
has declined by nearly 601% when compared to previous year. The domestic
industry has faced losses of nearly ₹ [ 1.97 ] crores with cash losses and a return on
[ -16 ] %. Clearly, if such a trend continuous and the domestic industry is unable to
curtail its losses, it would not be in a position to sustain its operations.
102. It is emphasized that if the domestic industry would have operated at optimum
capacity utilization of [ 80 ]%, it would have incurred profits. However, due to the
continuous dumping, the applicant is nowhere close to the optimum level of capacity
utilisation. The domestic industry was not even in a position to increase its
production. As mentioned above, the landed price of the product under consideration
is even lower than the variable cost of the domestic industry. Thus, if the domestic
industry increases its production and tries to compete with the imports, it would not
be able to recover even its variable cost. Clearly, even if the domestic industry
wanted to, it is not in a position to increase its capacity utilization. Thus, it was forced
to operate at a very low capacity and even shut down its operations in January 2023
to avoid increasing its losses.

Profit / (loss) ₹/MT [ -95,103 -71,206 10,039 -56,069
Profit / (loss) ₹ lakhs -29 -8 41 -197
Cash profit ₹ lakhs -20 -5 90 -115
Return on capital -18 -13 6 -16 ]
%
employed
g. Number of employees, wages and productivity

103. The number of employees, wages and productivity have been provided in the
enclosed annexures. It is evident that since the domestic industry is struggling to
operate for more than half the period, it poses a significant risk to the employment in
the company. Nevertheless, it may be considered that employment and wages are
not solely dependent on the performance of the subject goods and are governed by
several legislative requirements in the country and various business compulsions
36
with the industry. Therefore, employment and wages may not be reflective of the
adverse effects of the dumping on the domestic industry, as these factors are
governed by overall operations of the company and the economy.
h. Growth
104. The volume parameters of the domestic industry have shown an increase in
2021-22, and then a sharp decrease in the proposed period of investigation.
Moreover, it has remained in financial losses, and its losses have increased in 2020-
23. During the period of investigation, the growth of the domestic industry was
adverse in each of its parameters.

Production % - 301% -14% -26%
Domestic sales % - -61% 3319% -13%
Profit / Loss % - -25% -114% -659%
Cash Profits % - -71% -216% -246%
Return on capital
% - -30% -146% -377%
employed
i. Impact on ability to raise capital investment

105. The domestic industry has not been able to achieve profitability for most of its
operations. Further, the domestic industry has not even recovered enough to be able
to pay its interest cost. Its EBIDTA itself is negative, and has deteriorated over the
period. While the domestic industry had initially envisaged a plant of [ 18,000 ] MT, it
is evident that it cannot even imagine expanding capacity in the present situation.
This clearly shows that the imports have adversely impacted the ability of the
domestic industry to raise capital investment.
j. Factors affecting prices

106. The domestic industry has not been able to increase its prices to a
remunerative level during the period of investigation. The low-priced imports have
forced the domestic industry to sell the goods below cost. Not only have the imports
created a strain on the prices of the domestic industry, but have also resulted in the
domestic industry suffering low market share, underutilised capacity and facing plant
shut downs. Thus, it can be concluded that the subject imports are affecting the
prices of the domestic industry.
37
k. The magnitude of dumping

107. As can be seen from enclosed information, there is significant dumping of
subject goods into the country in the proposed period of investigation. The severe
dumping of the subject goods has destroyed the conditions of fair competition in the
market.
108. Thus, it is evident that the imports have adversely impacted the performance of
the domestic industry over the injury period, and the domestic industry has suffered
material injury as a result.
PART V – EVIDENCE OF CAUSAL LINK
A. Non-attribution analysis
I. Volume and value of imports from countries other than the subject
country(ies) and an explanation as to why imports from these country(ies)
especially from where the imports are above de-minimis are not causing injury
to domestic industry.
109. Barring the subject countries, there are no imports from any other country.
Therefore, the injury to the domestic industry is not attributable to imports from third
countries.
II. In case the demand has undergone decline substantially, an explanation

on why such decline has not caused injury to the domestic industry.
110. The demand for the subject goods has decreased in 2020-21 but increased
again in 2021-22 and in the period of investigation. It was the highest during the
proposed period of investigation. The demand is expected to continue the trend of
growth. Thus, the domestic industry has not suffered injury due to contraction in
demand.
III. State whether trade restrictive practices of and competition amongst the
foreign and/or domestic producers, developments in technology, export
performance or the productivity of the domestic industry or any other known
factors have cause injury to the domestic industry. If no, explain why.
38
111. There are no other factors causing injury to the domestic industry apart from
the dumped imports from subject countries. This is evident from the below.
i. Change in technology
112. There has been no change in technology for production of subject goods, which
could have caused injury to the domestic industry. The domestic industry has set up
a plant only in the recent past and therefore should be considered quite competitive
on this account.
ii. Conditions of competition and trade restrictive practices

113. There are no trade restrictive practices or conditions of competition, which
caused injury to the domestic industry.
iii. Changes in the pattern of consumption

114. There has been no material change in the pattern of consumption of the
products under consideration. Possible changes in the pattern of consumption have
not caused claimed injury to the domestic industry.
iv. Productivity
115. The productivity of the domestic industry has changed in line with the
production of the domestic industry. Therefore, the domestic industry has not
suffered injury on this account.
v. Export performance of the domestic industry

116. The performance of the domestic industry has been segregated between
domestic and export operations and the injury analysis in so far as it pertains to price
parameters pertains only to the domestic operations of the domestic industry.
Therefore, the export performance is not a cause of price injury to the domestic
industry. In any case, the domestic industry is earning profits in its exports.
vi. Performance of other products of the company

117. The injury information provided relates solely to the performance of the like
articles produced by the domestic industry. The claimed injury is not attributable to
the performance of other products.
39
B. Factors establishing causal link
118. While it is evident from the above that the injury claimed is not on account of
any other factors, the following may be noted with regard to existence of causal link
between the dumped imports and the injury to the domestic industry.
a. There is dumping of the subject goods from the subject countries.

b. The import volume was the highest in the period of investigation. The
imports declined in the previous two years only because of demand
decline due to Covid.
c. The volume of imports also increased in relation to the consumption and
production of the domestic industry and are nearly [ 5.5 ] times the Indian
production, despite the domestic industry having capacity to cater to the
entire Indian demand.
d. The imports of the product under consideration have entered the Indian
market only from the subject country. No other country has exported the
subject goods to India.
e. The subject imports are significantly undercutting the prices of the
domestic industry.
f. The cheaper prices have created a strain on the prices of the domestic
industry, thereby preventing it from achieving remunerative prices or its
cost of sales.
g. Even when the prices of raw materials increased in the period of
investigation, the prices of the imports decreased.
h. The domestic industry has severely underutilised capacities. Even after
producing at lower levels, it was forced to rely on exports to dispose of its
production.
i. There has been a significant increase in the inventories of the domestic
industry, as it has been unable to sell its goods.
j. The domestic industry was forced to shut down its operations in order to
cut down it losses and avoid excessive inventory.
k. The market share of the domestic industry is alarmingly low throughout
the injury period.
l. The domestic industry has incurred losses and cash losses throughout the
injury period except in 2021-22 when the landed price increased. Even the
return on investment in period of investigation was negative.
It is, therefore, evident that the injury to the domestic industry has been caused by
the dumped imports.
40
IV. Provide the production during any shut-down month/ quarter

(segregating between normal and abnormal) in the plant during the injury
period. Also provide the inventory levels and other relevant details during that
time.
119. . The details of shutdown are enclosed as Annexure 2.4.
V. Provide whether there are any constraints (related to raw materials

shortage, power shortage, impact of any tax differential, lack of adequate
capacity or investment constraints, etc. as applicable to the domestic industry
in relation to the production or sales of subject goods. Provie the relevant
details in this regard.
120. The domestic industry has not faced any constraints related to raw material
shortages, power shortage, lack of adequate capacity or investment constraint.
VI. Evidence of lost contracts.
121. The loss of sales is visible from the low volume of domestic sales and
insignificant market share of the domestic industry.
PART VI – COSTING INFORMATION
I. Production Process: Stage-wise process of manufacturing including its

various routes of such manufacturing along with process-flow chart indicating
cycle time taken at each process.
122. The production process of the applicant is enclosed as Annexure 1.1.
II. Statement of consumption of raw materials, packing materials and

utilities used for PUC production and Details of expenses (procured
domestically / imported or from related/unrelated party) during the POI as per
Format VI-I.
123. The statement of consumption of raw material, packing materials and utilities
used for production of product under consideration and details of expenses has been
41
enclosed herewith as Format VI-I. The costing formats are enclosed as Annexure
6.2.
III. Statement of cost of production as per Format VI-2. The basis of

allocation may be clearly mentioned. The PUC figures in format VI-2 must be
provided as per the financial records. Further, in case the Cost Audit Report
has dedicated cost of production for the PUC, then provide the Cost Audit
Report for the IIP along with the reconciliation of the financial and cost records
maintained by the company.
124. The statement of cost of production has been enclosed herewith as Format VI-
2.
IV. Provide the calculation of the ratios used in the costing formats for
allocation of expenses, working capital or net fixed assets as per Format VI-2R
which shall be duly linked with the respective formats, wherever used.
125. Since all expenses relating to the like article are recorded separately in the
system, the applicant has not used any ratios for allocation of expenses. Corporate
level expenses have been allocated on sales turnover ratio. In case of calculation of
net fixed assets and working capital, the ratios used for allocation have been
enclosed as Format VI-2R. Working Capital has been allocated on sales turnover
ratio and Net Fixed Assets are directly identifiable to the plant and common assets of
corporate office have been allocated on Direct Assets Ratio. Format VI-2R has been
enclosed.
V. Provide PCN-wise summarised Statement of Expenses, if
proposed/claimed, as per Format VI-3.
126. The applicant has not claimed PCN in the proposed petition. Therefore, Format
VI-3 is not applicable.
VI. Calculations in Excel of Average Working Capital (for opening & closing
period of POI) and Average Net fixed Assets (for the IIP) as per Format VI-4.
The basis of allocation may be clearly mentioned.
127. The calculation of average working capital and average net fixed assets is
enclosed herewith as Format VI-4. The basis for allocation is mentioned in the
enclosed information.
42
VII. In case of major new investment (i.e. beyond small de-bottlenecking etc.)
for the PUC during the IIP, provide the date of installation of machinery, its
average useful life on such date and its detailed project report as submitted to
the relevant authorities / financial institutions or, if not so submitted, as
approved by the management of the company.
128. Trion Chemicals Private Limited (herein referred to as “Trion”) was a private
limited chemical manufacturing company that was incorporated on [ 29th April 2009 ]
under name and impression of SKRAJ Exim Private Limited ] by [ Mr. Rajeshbhai
Naginbhai Shah and Mr. Saumit Krishnakant Shah ] (referred as “promoters”). On
[ 15th January 2011 ], the name SKRAJ Exim Private Limited was changed to Trion
Chemicals Private Limited.
129. On [ 16th March 2017 ], Bodal Chemicals Limited, a listed chemical

manufacturing company invested in Trion by acquiring 42% equity and then on [ 26 th
June 2018 ] increase its investment in equity to 59%. In March 2020, Bodal
Chemicals Limited acquired the balance equity in Trion from the old promoters and
Trion became 100% wholly owned subsidiaries of Bodal Chemicals Limited. Further,
Trion was amalgamated (Merged) with Bodal Chemicals Limited vide NCLT Order
No. CP (CAA) 57 of 2020 in CA (CAA) 55 of 2020 dated 31 st December 2020 with
effect from 1st April 2019.
VIII. Statement showing plant-wise NIP for the applicant companies

constituting DI separately along with the weighted average NIP for the DI as a
whole as per Format VI-5.
130. The product under consideration is manufactured only at one plant. The details
of the plant have been given hereinabove. Non-injurious price (NIP) for domestic
industry is enclosed herewith as Format VI-5. The non-injurious price has been
determined on the basis of directions given by the Designated Authority either
through trade notice or otherwise, and therefore may not be considered as an
admission on the part of the domestic industry with regard to the methodology for
determination of non-injurious price and injury margin.
IX. A Statement showing Installed Capacity, Production and Net Sales

Realisation (Qty. and value for the PUC (month-wise for the POI).
131. A statement showing installed capacity, production and net sales realisation is
enclosed along with Format VI-5.
43
X. Provide for the POI, the Audited / certified signed (searchable pdf
document) annual financial statements (and notes annexed thereto) including
director’s auditor’s report. Also provide for the POI, relevant excel of P&L and
balance sheet including notes to financial statements and ‘trial balance
relevant to PUC as per Format VI-2T duly linked with costing formats.
132. The financial statements for the proposed period of investigation are enclosed
as Annexure 6.4.
133. The trial balance for product under consideration linked with costing formats is
enclosed herewith as Format VI-2T.
XI. Provide for the past three financial years, the Audited annual financial
statements including director’s and auditor’s report (searchable pdf
document).
134. Audited annual financial statements of the applicant for the past three financial
years are enclosed as Annexure 6.4.
44

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Trichloro Isocyanuric Acid Confidential

INITIATION OF ANTI-DUMPING INVESTIGATION

TRICHLORO ISOCYANURIC ACID

CHINA AND JAPAN

BODAL CHEMICALS LIMITED

S. No. Annexure No. Particulars Page No.

BACKGROUND AND INTRODUCTION.....................................................................4

BACKGROUND AND INTRODUCTION

1. The present application is being filed by Bodal Chemicals Limited (hereinafter

2. The application is in the form and manner prescribed by the Designated

B. Background of the applicant

3. Bodal Chemicals Limited (BCL) is the first producer of Trichloro Isocyanuric

4. Prior to establishment of the present plant, India was completely dependent on

C. Critical need for imposition of duty

b. Rate of increase in imports

Particulars Unit 2019-20 2020-21 2021-22 2022-23

7. It is submitted due to multiple shutdowns in the injury period, the available

c. Decrease in prices despite increasing prices of raw materials

Landed Value (₹/MT)

e. Low volume of domestic sales

] % of the deployed capacity. The domestic sales are only [ 21 ]% in relation to

a. Negligible market share despite 6 years of operations

f. Plant shutdowns faced due to accumulation of inventories

h. Increased losses and negative return on investment

D. Request for imposition of provisional duty

PART I – IMPORTED PRODUCT INFORMATION

I. Complete description of alleged dumped goods, including information on

18. The product under consideration is “Trichloro Isocyanuric Acid” (hereinafter

a. Preparation of Sodium Salt of Cyanuric Acid:

b. Chlorination of Cyanuric Salt:

Tariff item Description of goods

2933 69 90 --- Other :

Year MFN Rates Japan

II. Country(ies) of origin of the alleged dumped goods.

33. The present application is in respect of imports of subject goods originating in

III. Details of concluded or ongoing investigations, if any, relating to the

37. A statement showing country-wise volume, value and price of imports is

a. Known producers/exporters of the alleged dumped goods in each of the

b. Known importers of the alleged dumped goods in India and/or the

39. A list of known importers of the subject goods is enclosed herewith as

c. Known users of the alleged dumped goods in India and/or the

d. Other domestic producers of the like product in India and/or the

PART II – INDIAN INDUSTRY PROFILE

I. Provide the following relating to the Indian producers of the subject

Bodal Corporate House,

b. Name, Functional email id, address and phone numbers of the

45. The details of manufacturing plant are as follows:

Bodal Chemicals Limited

Department of Chemicals and Petrochemicals,

V. Provide the following details relating to the end-use product(s)

a. Concerned line ministry and department in Govt. of India.

49. As mentioned hereinabove, the product under consideration is being used as a

Department of Consumer Affairs

VI. Whether the product(s) manufactured by the Applicants are commercially

IX. Whether the concerned product of the applicant is like-article of subject

55. There is no known material difference in the technology adopted by the

X. Provide the details of end-users/ consumers of like product in India

57. As mentioned hereinabove, TCCA is used as a disinfectant and bactericide for

a. Shutdown (normal/maintenance/ planned and abnormal/ unplanned) and

a. The details of plant shutdown are enclosed as Annexure 2.4.

b. Force-majeure situations like flood, earthquake, fire, other natural

PART III – EVIDENCE OF DUMPING

I. Provide the estimates of normal value of the subject goods in subject