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DGTR initiates anti-dumping investigation on imports of vitamin-A palmitate from China, EU & Switzerland

Gireesh Babu, New Delhi
Wednesday, January 4, 2023, 08:00 Hrs  [IST]

The Directorate General of Trade Remedies (DGTR) has initiated anti-dumping investigation concerning imports of vitamin-A palmitate originating in China, the European Union and Switzerland, based on a petition filed by Piramal Pharma Ltd. The anti-dumping duty regulators had imposed duty on imports of vitamin-A palmitate from China and Switzerland in the past also.

The Directorate has called for filing of relevant information from the known exporters in the subject countries, their governments through their Embassies in India, the importers and users in India known to be concerned with the subject goods and the domestic industry through email within 30 days from the date of receipt of the notice.

The investigation will be conducted on vitamin-A palmitate, covering both vitamin A palmitate 1.7 MIU/Gm and vitamin A palmitate 1.0 MIU/Gm in all its strengths and forms, with or without stabilization. Though differing only in concentration, these are product sub-types with the same end uses and are also technically and commercially substitutable.

The petitioner has submitted that the PUC is used in a wide variety of intermediate products falling under various sectors, including food, cosmetics, and pharmaceutical industries.

However, the scope of the product under consideration (PUC) does not cover vitamin-A palmitate 1.6 MIU/Gm which is used for animal consumption and has different end-uses compared to the PUC.

The company said that the goods produced by the domestic industry are comparable to the goods imported from China, European Union and Switzerland in terms of technical specifications, manufacturing process and technology, functions and uses and tariff classification. The applicant has claimed that the two are technically and commercially substitutable.

Piramal Pharma Ltd filed the application claiming that it is the sole producer of the subject goods in the country and it has two facilities manufacturing these products at Mahad, in Maharashtra and at Digwal, in Telangana.

For the purpose of investigation, the Authority has considered 12 months from July 1, 2021 to June 30, 2022 as the period of investigation (PoI) and the period of injury covers the period from April 1, 2018 to March 31, 2019, April 1, 2019 to March 31, 2020, April 1, 2020 to June 30, 2021 and the PoI. Piramal Pharma has submitted data from April, 2021 to June 2021 so that there is no gap in the injury analysis period.

The company proposed to construct the normal value for China on the basis of the best available information, since they were not able to obtain any reliable information for the purpose of the normal value on the product from the country, having regard to the cost of the production duly adjusted, and with a reasonable margin.

Similarly, it claimed that no reasonable, authentic transaction selling price in the domestic markets of the European Union and Switzerland was available and it was also unable to gather data on the representative prices of the particular goods when exported from these locations. It has proposed to construct the normal value for the European Union and Switzerland on the basis of estimates of the cost of production in these countries considering the cost of the domestic industry duly adjusted after addition for selling, general and administrative expenses and reasonable profits.

The Authority accepted these claims in respect of the determination of the normal value for China, the European Union and Switzerland, for the prupose of the initiation of the investigation.

"On the basis of the duly substantiated written application by or on behalf of the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted, about the dumping of the subject goods originating in or exported from the subject countries, injury to the domestic industry and causal link between such alleged dumping and injury, and in accordance with Section 9A of the Act read with Rule 5 of the Rules, the Authority, hereby, initiates an investigation to determine the existence, degree and effect of any alleged dumping in respect of the subject goods originating in or exported from the subject countries and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry," said the notification issued by the DGTR.

It may be noted that the Directorate General of Anti-dumping and Allied Duties (DGAD) has recommended definitive duty on the imports of vitamin A palmitate from China and Switzerland and it was made effective from March 28, 2007. It has also extended the anti-dumping duty through a sunset review applied by Piramal Healthcare Ltd, in 2013, which expired after five years.


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