(Department of Commerce)
New Delhi, 25th September, 2020


Subject : Initiation of Countervailing Duty Investigation concerning imports of Copper Tubes and Pipes from Malaysia, Thailand and Vietnam

F. No. 04/10/2020-DGTR.—A. Background

1. A representation has been received from M/s Bombay Metal Exchange (hereinafter referred to as the “BME”), the apex body of Non-ferrous metal trade and industry in India representing about 50 manufacturers of Copper Tubes and Pipes (hereinafter referred as the “subject goods” or “product under consideration”) before the Designated Authority (hereinafter referred to as the “Authority”) stating that there is a steep decline in production in India because of significant increase in imports from certain ASEAN countries mainly Malaysia, Thailand and Vietnam (hereinafter referred to as the “subject countries”) because of significant subsidies/benefits that are available to the producers in these countries.

2. The Authority has also received the import data of customs of the subject goods during the past four years which indicate increased imports mainly from Malaysia, Thailand and Vietnam collectively account for more than 90% of total imports of subject goods.

B. Product under consideration

3. The product under consideration in the present investigation is “Copper Tubes and Pipes”. Copper tubes and pipes are cylindrical profiles having a circular, rectangular, square, oval, etc. cross section. Copper Tubes and pipes can be made of either refined copper or copper alloys. Copper tubes and pipes are largely used in air- conditioning and refrigeration systems. About 80- 90% of the consumption of the product is in air- condition and refrigeration systems applications.

4. The product is classified under Chapter 74 of the Customs Tariff Act, 1975 (51 of 1975) under customs heading 74112100, 74112200 and 74112900. The Customs classification is only indicative and not binding on the scope of this investigation.

C. Like Article

5. Noting the claim of BME of subject goods from the subject countries impacting the Indian Industry, the Authority prima facie holds that the subject goods produced by the domestic industry and the goods imported from subject countries are comparable and also technically and commercially substitutable. They are therefore prima facie being treated as ‘like article’ under the Rules for the purpose of the present investigation.

D. Basis of Investigation of subsidization

6. BME has alleged that there is a steep decline in production in India because of a significant increase in imports from subject countries due to significant subsidies/benefits that are available to the producers in the subject countries, which have encouraged significant production in these countries despite no additional demand of the same.

7. The Authority has referenced the Countervailing duty investigation pertaining to import of Continuous Cast Copper Wire Rods from Indonesia, Malaysia, Thailand and Vietnam. It is noted that the product involved in the aforesaid investigation and the subject goods under consideration in the present investigation belong to the same family and thus the same subsidies would be prima facie available to the PUC, which were also discussed during the pre-initiation consultation as stated in Para 9.

8. The subsidy schemes alleged to be subsidized are available at files/FINAL%20NCV%20FF.pdf

E. Pre-Initiation Consultation

9. As stated above consultations were held on 15th and 17th September, 2020 with the Government of Thailand and Vietnam, respectively. The availability of the aforementioned schemes to the exporters of Copper Tubes and Pipes was discussed in the consultations. The Government of Thailand and Vietnam have revealed that schemes available to exporters of Copper Wire Rods could prima facie also be availed by the exporters of Copper Tubes and Pipes. The Government of Malaysia refused the consultation request, due to the non-availability of a petition from the domestic industry, the Authority clarified by inviting their attention to the Rule 6(4) of the CVD Rules to the Government of Malaysia.

F. Initiation of Countervailing Duty Investigation

10. The Authority takes cognizance of the information provided by the BME and also the Customs import data as per sub rule sub rule 4 of rule 6 of Customs Tariff (Identification, Assessment And Collection Of Countervailing Duty On Subsidized Articles And For Determination Of Injury) Rules, 1995 (hereinafter referred as the Rules) stated as under:

“Notwithstanding anything contained in sub-rule (1), the designated authority may initiate an investigation suo motu, if it is satisfied from the information received from the Commissioner of Customs appointed under the Customs Act, 1962 (52 of 1962) or any other source that sufficient evidence exists as to the existence of the circumstances referred to in subclause (b) of sub-rule (3).”

11. Keeping in view the rule 6(4) of the CVD rules, Authority hereby initiates the Countervailing Duty Investigation.

G. Period of Investigation (POI):

12. The period of investigation (POI) for the present investigation is 1st April 2019 to 31st March 2020 (12 Months) and the injury period will cover the periods April 2016 – March 2017, April 2017 – March 2018, April 2018 – March 2019 and the POI.

H. Subject Countries

13. The subject countries for the present investigation are Malaysia, Thailand and Vietnam.

I. Procedure

14. Principles as given in Rule 7 of the Rules shall be followed for the present investigation.

J. Submission of Information

15. In view of the special circumstances arising out of COVID-19 pandemic, all communication should be sent to the Designated Authority via email at the email addresses [email protected] and [email protected].

16. The known producers/exporters in the subject country, Government of the subject country through their Embassy in India, the importers and users in India known to be concerned with the subject goods and the domestic industry are being informed separately to enable them to file all the relevant information in the form and manner prescribed within the time-limit set out below.

17. Any other interested party may also make its submissions relevant to the investigation in the prescribed form and manner within the time limit set out below.

18. Any party making any confidential submission before the Authority is required to make a non-confidential version of the same available to the other parties.

K. Time-Limit

19. Any information relating to the present investigation should be sent to the Designated Authority via email at the email addresses [email protected] and [email protected] within 30 days from the date of receipt of the notice as per as per Rule 7(4) of the Rules. If no information is received within the prescribed time limit or the information received is incomplete, the Authority may record its findings on the basis of the facts available on record in accordance with the Rules.

20. All interested parties are advised to intimate their interest (including the nature of interest) in the instant matter and file their questionnaire responses within the above time-limit.

L. Submission of information on confidential basis

21. Any party making any confidential submission or providing information on confidential basis before the Authority, is required to simultaneously submit a non-confidential version of the same in terms of Rule 8(2) of the Rules. Failure to adhere to the above may lead to rejection of the response / submission.

22. The parties making any submission (including Appendices/Annexures attached thereto), before the Authority including questionnaire response, are required to file Confidential and Non-Confidential versions separately.

23. The “confidential” or “non-confidential” submissions must be clearly marked as “confidential” or “non-confidential” at the top of each page. Any submission made without such marking shall be treated as non-confidential by the Authority, and the Authority shall be at liberty to allow the other interested parties to inspect such submissions.

24. The confidential version shall contain all information which is by nature confidential and/or other information which the supplier of such information claims as confidential. For information which are claimed to be confidential by nature or the information on which confidentiality is claimed because of other reasons, the supplier of the information is required to provide a good cause statement along with the supplied information as to why such information cannot be disclosed.

25. The non-confidential version is required to be a replica of the confidential version with the confidential information preferably indexed or blanked out (in case indexation is not feasible) and summarized depending upon the information on which confidentiality is claimed. The non-confidential summary must be in sufficient detail to permit a reasonable understanding of the substance of the information furnished on confidential basis. However, in exceptional circumstances, the party submitting the confidential information may indicate that such information is not susceptible to summary, and a statement of reasons why summarization is not possible must be provided to the satisfaction of the Authority.

26. The Authority may accept or reject the request for confidentiality on examination of the nature of the information submitted. If the Authority is satisfied the request for confidentiality is not warranted or if the supplier of the information is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, it may disregard such information.

27. Any submission made without a meaningful non-confidential version thereof or without good cause statement on the confidentiality claim shall not be taken on record by the Authority.

28. The Authority on being satisfied and accepting the need for confidentiality of the information provided, shall not disclose it to any party without specific authorization of the party providing such information.

M. Inspection of Public File

29. In terms of Rule 7(7) of the Rules, any interested party may inspect the public file containing non-confidential version of the evidence submitted by other interested parties. However, in view of the by interested parties amongst themselves COVID-19 pandemic, the modalities of sharing the Non-confidential versions of submissions will be separately uploaded on the website of DGTR.

N. Non-cooperation

30. In case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the Authority may record its findings on the basis of the facts available to it and make such recommendations to the Central Government as deemed fit.

BIDYUT BEHARI SWAIN, Spl. Secy. & Designated Authority

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