Regarding continuation of anti-dumping duty on 1,1,1,2 – tetrafluoroethane or 134a

India has imposed anti-dumping duty of up to $1.41 per kg on imports of a gas, used primarily for refrigeration purpose, to protect domestic players from cheap Chinese and Japanese shipments. The restrictive duty on the import of ‘1,1,1,2-Tetrafluoroethane or R-134a’ would be imposed for a period of five years, the Department of Revenue said. The duty would range from between $0.69 per kg and $1.41 per kg on imports of the gas from Japan and China, it said.

“The anti-dumping duty imposed shall be levied for a period of five years (unless revoked, superseded or amended earlier)… And shall be payable in Indian currency,” the department said. R-134a is an inert gas used primarily as a “high temperature” refrigerant for domestic refrigeration and automobile air conditioners. Other uses include plastic foam blowing and as a cleaning material and for removing moisture from compressed air.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal agency under the Commerce Ministry, had recommended the imposition of duty after an investigation. The DGAD had concluded in its probe that the domestic industry had suffered a material injury on account of dumping of the product by the two countries.

The country has already imposed anti-dumping duty on imports of fabric, yarn, nylon tyre cord and several chemicals. Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes the same.Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in cheap imports.As a counter-measure, they impose duties under the multilateral WTO regime.

Notification No. 61/2011-Customs,

New Delhi, 15^th July, 2011

G.S.R.    (E) Whereas, in the matter of imports of 1, 1, 1, 2-Tetrafluoroethane or R-134a of all types (hereinafter referred to as the subject goods), falling under sub heading 2903 3919  of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the said Customs Tariff Act), originating in, or exported from, People’s Republic of China and Japan(hereinafter referred to as the subject countries) and imported into India, the designated authority in its preliminary findings, vide, notification No.14/24/2009-DGAD, dated the 19th  February, 2010, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the  19^th February, 2010, had come to the conclusion that,-

(a) the subject goods had been exported to India from the subject countries below its normal value;

(b) the domestic industry had suffered material injury;

 (c) the injury had been caused by the dumped imports from subject countries;

and had recommended imposition of provisional anti-dumping duty on the imports of subject goods, originating in, or exported from, the subject country;

And whereas, on the basis of the aforesaid findings of the designated authority, the Central Government had imposed provisional anti-dumping duty on the subject goods vide notification No. 52/2010-Customs, dated the 19^th April, 2010, published in the Gazette of India, Extraordinary Part II, Section 3, sub-section (i), vide number G.S.R. 334(E), dated the 19^th April, 2010;

And whereas, the designated authority, in its final findings vide notification No. 14/24/2009–DGAD, dated 10th May, 2011, published in the Gazette of India, Extraordinary, Part I, section 1, dated the 10^th May,2011, has come to the conclusion that,-

(a)   the subject goods have been exported to India from the subject countries below its normal value;

(b) the domestic industry has suffered material injury, caused by the dumped imports from subject countries;

(c) the dumping margins of the subject goods imported from the subject countries are substantial and above de minimis.

Now, therefore, in exercise of the powers conferred by sub-section (1) read with sub-section (5) of section 9A of the said Customs Tariff Act, 1975 read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, on the basis of the aforesaid findings of the designated authority, hereby imposes definitive anti- dumping duty on the goods, the description of which is specified in column (3) of the Table below, falling under sub- heading of the First Schedule to the said Customs Tariff Act  specified in the corresponding entry in column (2),originating in the country specified in the corresponding entry in column (4), and exported from the country specified in the corresponding entry in column (5) and produced by the producer specified in the corresponding entry in column (6) and exported by the exporter specified in the corresponding entry in column (7), and imported into India, an anti-dumping duty at the rate equal to the amount indicated in the corresponding entry in column (8), in the currency as specified in the corresponding entry in column (10) and per unit of measurement  specified in the corresponding entry in column (9) of the said Table.

Table

3. The anti-dumping duty imposed shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.

Explanation. – For the purposes of this notification, rate of exchange applicable for the purposes of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Customs Act.

[F.No.354/24/2010 –TRU (Pt-1)]

(Sanjeev Kumar Singh)
Under Secretary to the Government of India.