New Delhi: India has begun an investigation to review the need to continue imposing anti-dumping duty on 2-Ethyl Hexanol from the EU, the US, Indonesia, South Korea, Malaysia and Taiwan with the existing duties on the product expiring on March 28, 2021.
The Andhra Petrochemicals Limited has sought continuation of the duty on the product which is used in solvents, flavours, and fragrances, citing the likelihood of recurrence of dumping.
“The Authority hereby initiates a sunset review investigation to review the need for continued imposition of anti-dumping duty on 2-Ethyl Hexanol from European Union, Indonesia, Korea RP, Malaysia, Taiwan and United States of America,” the Directorate General of Trade Remedies (DGTR) said in a notification.
The existing antidumping duty on the product was imposed on March 29, 2016.
The period of investigation for the present investigation is April 2019 to March 2020 and the injury period will cover FY17-FY20.
“The Authority notes that there is prima facie evidence of dumping and consequential injury to the domestic industry on account of volume effect i.e. increase in imports, decline in production, capacity utilization, sales and market share and price effect due to price depression leading to reduction in profits, cash profits and return on capital employed,” DGTR said.
It also said the data provided by the applicant on the increased imports inspite of duties imposed, third countries dumping, price attractiveness of the Indian market, injurious exports to other countries, export orientation of the producers in the subject countries, capacity expansion and significant share in demand in India of the imports from the subject countries also prima facie indicate a likelihood of dumping and consequential injury on cessation of the anti-dumping duty.