The National Tariff Commission (NTC) has imposed anti-dumping duties on dumped imports of Inorganic Yellow Chrome Pigment from India and Korea.
Sources in the NTC told ProPakistani that the NTC issued an order on the final determination and levy of Anti-Dumping Duties on dumped imports of Inorganic Yellow Chrome Pigment from India and Korea.
The rate of anti-dumping duties on the import of the said product from India is 51.59 percent, and Korea 26.59 percent. The anti-dumping duties levied would be in addition to other taxes and duties leviable on the import of the investigated product under any other law.
According to the order issued last week by the NTC, the Commission has imposed anti-dumping duties on dumped imports of the investigated product importable from the exporting countries for five years effective from August 25, 2020.
The investigated product is in powder form in various types and shades, among which regularly used types are Middle Chrome, Yellow Chrome, Primrose Chrome, Zinc Chrome, and Molybdate Orange. The investigated product is used in manufacturing paints, inks, leather coating, and masterbatches to produce various plastic items.
The NTC is responsible for conducting anti-dumping investigations for determination of dumping of the imported products, injury to the domestic industry, and the imposition of anti-dumping duty to offset the injurious impact of dumped imports on domestic industry and to ensure fair competition thereof.
Details of the issue revealed that the Commission received a written application under Sections 20 and 24 of the Anti-Dumping Duties Act, 2015 from M/s Poplon Pakistan Private Limited, Lahore.
The applicant is a producer of Yellow Pigment and alleged that Yellow Pigment is being exported to Pakistan at dumped prices from the exporting countries. According to the applicant, the alleged dumped imports of Yellow Pigment from the exporting countries have caused and are causing material injury to Pakistan’s domestic industry producing Yellow Pigment.
The Commission informed the High Commission of the Republic of India and Embassy of the Republic of Korea in Islamabad through a verbal note dated January 06, 2020, of the receipt of application per the requirements of Section 21 of the Act.
The examination of the application showed that it met the requirements of Section 20 of the Act, as it contained sufficient evidence of dumping of Yellow Pigment into Pakistan from the exporting countries and material injury caused to the domestic industry.
In the application, the applicant identified nine exporters and producers involved in the alleged dumping of the Yellow Pigment from the exporting countries. The applicant also stated that there might be other exporters and producers of Yellow Pigment in the exporting countries they are unaware of. Therefore, the applicant has requested the imposition of anti-dumping duties on all imports of Yellow Pigment originating in and/or exported from the Exporting Countries.
The Commission sent questionnaires on March 05, 2020, to the High Commission of the Republic of India and Embassy of the Republic of Korea in Islamabad with a request to forward it to all exporters and producers of the investigated product in their respective countries. The questionnaire was also sent directly to exporters and producers based in the exporting countries whose addresses were available to the Commission on March 06, 2020, for the collection of data and information necessary for this investigation. The exporters and producers were asked to supply the information within 37 days of the dispatch of the questionnaire.
However, none of the exporters and producers from the exporting countries responded to the Commission and did not provide the required information within the stipulated period. Therefore, reminders were issued to the exporters and foreign producers on April 18, 2020, explaining that in case of non-response, the Commission will be constrained to make preliminary and/or final determination of dumping in this investigation based on “Best Information Available” in terms of Section 32 of the Act, including those contained in the application submitted by the domestic industry. However, no response has been received from any exporter or foreign producer in this investigation.
The information and analysis show that the domestic industry also suffered material injury on account of sales, partly due to contraction in demand and partly due to volume of dumped imports of the investigated product, as sales of the domestic like product declined more than the decline in the total market, whereas the market share of the dumped imports of the investigated product increased during the POI, NTC said.
After taking into account all considerations for this final determination, the Commission has reached the following conclusions:
- The application was filed by the domestic industry as the applicant represented 100 percent of the production of the domestic like product during the POI.
- The investigated product and the domestic like product are like products.
- During POI, the investigated product was exported to Pakistan by the exporters and producers from the exporting countries at prices below its normal value.
- The volume of dumped imports of the investigated product and the dumping margins established for the investigated product from the exporting countries are above the negligible and de-minimis levels, respectively.
- The dumping margins expressed as a percentage of the weighted average adjusted export price at ex-factory level work out 59.60 percent for India and 59.94 percent for Korea.
The NTC further concluded that the domestic industry suffered material injury on account of the volume of dumped imports of the investigated product, price undercutting, price suppression, decline in market share, sales, production, capacity utilization, profits, profitability, return on investment, employment, productivity, and negative effects on cash flows in terms of Sections 15 and 17 of the Act. Dumping margins of 59.60 percent for India and 59.94 percent for Korea are enough to cause material injury to the domestic industry.
There is a causal relationship between dumped imports of the investigated product and the material injury to the domestic industry.
Given the analysis and conclusions concerning the dumping of the investigated product, material injury to the domestic industry, and causal link between dumping and injury, the Commission is required to impose anti-dumping duties on dumped imports of the investigated product under Section 50(1) of the Act.
The injury margins with regulatory duty work out 51.91 percent for India and 26.59 percent for Korea, which are lower than the dumping margins determined for the exporting countries, i.e., 59.21 percent for India and 58.40 percent for Korea of the C&F price. However, the injury margin without regulatory duty for India works out to 66.91 percent, which is above the dumping margin determined for India, i.e., 59.21 percent, whereas, the injury margin without regulatory duty for Korea works out 41.59 percent, which is lower than the dumping margin determined for Korea, i.e., 58.40 percent.
The NTC has imposed anti-dumping duties on dumped imports of the investigated product importable from the exporting countries for five years, effective from August 25, 2020.