Continuation of Anti-Dumping Duty on Synthetic Zeolite 4A from China

Introduction: The Ministry of Finance, Department of Revenue, issued Notification No. 12/2023-Customs (ADD) on 21st November, 2023, announcing the decision to continue the levy of anti-dumping duty on “Synthetic Grade Zeolite 4A (Detergent Grade)” from China PR. This extension, pursuant to the First Sunset Review Final Findings by DGTR, aims to address the ongoing concerns related to dumping and its impact on the domestic industry.

Detailed Analysis: The designated authority, in its review initiated through notification number 7/14/2022-DGTR, found compelling reasons to support the continuation of anti-dumping duty. The final findings, published on 12th September, 2023, outlined the following key conclusions:

1. Continued Dumping: The authority identified a sustained pattern of dumping of the subject goods from China PR, posing a risk of these goods entering the Indian market at dumped prices in the absence of the duty.

2. Injury to Domestic Industry: Dumped imports were found to be causing injury to the domestic industry, reinforcing the need for protective measures.

3. Likelihood of Dumping and Injury: The information on record indicated a probable continuation of dumping and resulting injury if the existing anti-dumping duty were to cease.

4. Risk of Diversion: There was a strong likelihood of exports of the subject goods diverting from China PR to India if the current anti-dumping measures were lifted.

Based on these findings, the Central Government, exercising its powers under section 9A of the Customs Tariff Act, decided to impose an anti-dumping duty on Synthetic Grade Zeolite 4A (Detergent Grade) from China PR.

The imposed duty, as detailed in the notification, specifies different rates for various producers and exporters. Chalco Shandong Advance Material Co. Ltd. (CSAMCL) faces a duty rate of 163.90 USD/MT, while all other producers/exporters from China PR are subject to a rate of 207.72 USD/MT.

The duration of this anti-dumping duty is set for five years, unless revoked, superseded, or amended earlier, starting from the date of publication in the Official Gazette. The duty is payable in Indian currency, and the exchange rate for its calculation will be determined based on the relevant notifications issued by the Ministry of Finance under the Customs Act, 1962.

Conclusion: The extension of the anti-dumping duty on Synthetic Grade Zeolite 4A (Detergent Grade) from China PR reflects the government’s commitment to protecting the interests of the domestic industry. The decision, supported by comprehensive findings, aims to mitigate the adverse effects of continued dumping and ensure a level playing field for Indian producers in the relevant market. The specified duty rates and the five-year duration provide a structured framework to address the identified concerns and foster a fair trade environment. This article serves as an overview of the notification, offering insights into the reasons behind the decision and its potential implications for stakeholders in the industry.

MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 12/2023-Customs (ADD) | Dated: 21st November, 2023 

G.S.R. 853(E).—Whereas, the designated authority, vide notification number 7/14/2022-DGTR, dated the 29^th September, 2022, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 29^th September, 2022, had initiated the review in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), and read with rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, in the matter of continuation of anti-dumping duty on imports of “Synthetic Grade Zeolite 4A (Detergent Grade)” (hereinafter referred to as the subject goods) falling under tariff items 3824 99 22, 3824 90 90, 3824 99 90, 2842 90 90, 2826 90 00, 2839 90 90 and 2842 10 00 of the First Schedule to the Customs Tariff Act, originating in or exported from China PR (hereinafter referred to as the subject country) initially imposed vide notification of the Government of India, Ministry of Finance (Department of Revenue), number 57/2018-Customs (ADD), dated the 13^th December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1203(E), dated the 13^th December, 2018;

And whereas, in the matter of review of anti-dumping duty on imports of the subject goods, originating in or exported from the subject country, the designated authority in its final findings, published vide notification number 7/14/2022-DGTR, dated the 12^th September, 2023, published in the Gazette of India, Extraordinary, Part-I, Section 1, dated the 12^th September, 2023, has come to the conclusion that-

(i) there is continued dumping of the subject goods from the subject country and the imports are likely to enter the Indian market at dumped prices in the event of cessation of duty;

(ii) dumped imports from subject country are causing injury to the domestic industry;

(iii) the information on record shows likelihood of continuation of dumping and injury in case the anti-dumping duty in force is allowed to cease at this stage;

(iv) there is strong likelihood of diversion of exports of the subject goods from the subject country to India if the existing anti-dumping measure ceases to exist,

and has recommended continued imposition of the anti-dumping duty on imports of the subject goods, originating in or exported from the subject country, in order to remove injury to the domestic industry.

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti­dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 and in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue), number 57/2018-Customs (ADD), dated the 13^th December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub­section (i), vide number G.S.R. 1203(E), dated the 13^th December, 2018, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the following Table below, falling under tariff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the country as specified in the corresponding entry in column (4), exported from the country as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6), an anti-dumping duty at the rate equal to the amount as indicated in the corresponding entry in column (7), in the currency as specified in the corresponding entry in column (8) and as per unit of measurement as specified in the corresponding entry in column (9) of the said Table, namely :-

TABLE

2. The anti-dumping duty imposed under this notification 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 purpose of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, 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. CBIC-190354/209/2023-TRU]

NITISH KARNATAK, Under Secy.