NEW DELHI: A sunset review investigation by the Indian authority has recommended for continuation of the imposition of a definitive anti-dumping duty on all imports of sodium citrate from China in view of “sufficient evidence” indicating that its revocation will lead to continuation of dumping and injury to the domestic industry.
In its final report of the investigation notified by the Ministry of Commerce in an official gazette on April 30, however, the Authority recommended for imposition of far lesser amount of anti-dumping duty than what was imposed by the government of India in 2015 on all imports of the Sodium Citrate from China.
The Authority recommended imposition of USD 96.05 duty per metric ton on import of the chemical from Jiangsu Guoxin Union Energy Co, Ltd and USD 152.78 duty per per metric ton on import of the chemical from any other producer from China.
The anti-dumping duty, as recommended by the Authority, would remain applicable on the import of chemical from China with alternative names—Tri Sodium Citrate, Tri Sodium Citrate dehydrate, Sodium Citrate dehydrate, Tribasic Sodium Citrate, Sodium Citrate Tribasic Dihydrate, Sodium Citrate Dibasic Sesquihydrate and Sodium Citrate Monobasic Bioxtra.
The Indian Directorate General of Anti-dumping and Allied Duties, which comes under the Ministry of Commerce, had initiated an anti-dumping investigation on imports of sodium citrate from China in February 2014.
On the basis of the findings and recommendation of the investigation Authority, Ministry of Finance had levied anti-dumping duty of USD 367.59 per metric ton on all imports of sodium citrate from China in May 2015 for a period of five years.
A sunset review investigation in the matter was initiated last year on an application by M/s Posy Pharmachem Private Limited, Indian firm which produces the chemical, as five year duration of the Indian government’s order was due to expire on May 19.
The Posy Pharmachem Private Limited’s application was supported by M/s Adani Pharmachem Private Limited, M/s. Sunil Chemicals, M/s. India Phosphate and M/s. Alpine Labs.
An anti-dumping duty is a protectionist tariff imposed by many of the countries to protect their domestic businesses and markets when foreign companies offer goods at a price which is below fair market value.
“The dumped imports of the subject goods (sodium citrate and its alternative names) from the subject country (China) continue to be significant even after imposition of definitive anti-dumping duty on subject imports,” The Authority noted in its report, adding “Imports of the product are undercutting the prices of the Domestic Industry in the market”.
Further, while the cost of production had increased over the injury period, the increase in selling price has remained lesser than the increase in cost of production even as the landed price of the “subject goods” continue to be lesser than the selling price and the cost of sales barring 2016-17 and 2017-18.
“The imports are, thus, suppressing the prices of the domestic industry since 2017-18 and preventing the price increases that would have otherwise occurred in the absence of dumped imports,” the authority noted, adding “ The domestic industry has suffered injury on account price effect of dumped
imports, as a result of which the profitability of the domestic industry has declined.”
The return on capital employed, profits and cash profits turned negative during the period of investigation.
“Thus, growth in respect of most of the parameters such as profits, cash profits, and return on capital employed, shows an adverse impact on the domestic industry. An analysis of the performance of the Domestic Industry over the injury period shows that the performance of the Domestic Industry has deteriorated due to dumped imports from subject country,” the Authority added in its investigation report.
