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Customs Notification, Circulars Anti-Dumping Notifications (DGAD)  NOTIFICATION NO. 59/1/2001-DGAD DATE 31/01/2003 (PART II)
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16. OTHER EXPORTERS FROM TAIWAN:

No other exporter from Taiwan has responded to the investigation. The Authority has assessed the normalvalue for other exporter based on best available information under Rule 6(8). The export price as determined byadopting the export statistics compiled by DGCI&S for the period of investigation has been adopted.Accordingly the Authority has determined the ex-factory export price of the subject goods as US $*****per kg.

17. SINGAPORE:

NORMAL VALUE:

Exporters Questionnaire was sent to the known exporters from Singapore. None of the exporters fromSingapore furnished any information in response to the initiation notice. In view of non submission ofinformation by producers/ exporters from Singapore , the Authority has treated the exporters from Singapore asnon cooperative. Under these circumstances the only option available with the Designated Authority is toassess the normal value in case of all exports from Singapore based on best available information inaccordance with Rule 6(8) supra. The Authority has assessed the Normal Value as US $ ***.

EXPORT PRICE:

As there is no response from any exporter from Singapore, the Designated Authority adopted the Export Pricebased on the data compiled by DGCI&S, Kolcutta in respect of all exporters from Singapore. Accordingly theAuthority has determined the ex-factory export price of the subject goods as US $*****per kg.

18. HONG KONG:

NORMAL VALUE:

Exporters Questionnaire was sent to the known exporters from Hong Kong. None of the exporters from HongKong furnished any information in response to the initiation notice. In view of non submission of information byproducers/ exporters from Hong Kong, the Authority has treated the exporters from Hong Kong as noncooperative. Under these circumstances the only option available with the Designated Authority is to assess thenormal value in case of all exporters from Hong Kong based on best available information in accordance withRule 6(8) supra. The Authority has assessed the Normal Value as US $ **** per kg. of lead acid battery.

EXPORT PRICE:

As there is no response from any exporter from Hong Kong, the Designated Authority has adopted the ExportPrice based on the data compiled by DGCI&S, Kolcutta in respect of all exporters from Hong Kong. Accordinglythe Authority has determined the ex-factory export price of the subject goods as US $*****per kg.

G. DUMPING–COMPARISON OF NORMAL VALUE AND EXPORT PRICE:

19. The rules relating to comparison provides as follows:

(a) "While arriving at the margin of dumping, the DA shall make a fair comparison between the Export Price andthe Normal Value. The comparison shall be made at the same level of trade, normally at ex-works level, andin respect of sales made at as nearly possible the same time.

(b) Due allowance shall be made in each case, on merits, for differences which affect price comparability,including differences in conditions and terms of sales, taxation, levels of trade, quantities, physicalcharacteristics and any other differences which are demonstrated to affect price comparability"

(c) As there is a vide variety of models and types of batteries, these need to be brought into a commondenominator for the purpose of calculation and comparison. As mentioned in the Preliminary Findings andalso as stated above, there is a direct co-relation between power, lead content and weight of the battery,which also gets reflected in terms of value or price. Further, the direct co-relation between the lead contentand weight of the battery and its associated costs and prices is also quite significant. The Authority has,therefore, denoted the normal value as well as the export price in terms of weight of the batteries for thepurpose of their comparison and arriving at a dumping margin. The dumping margin for all the exporters andmanufacturers of each country separately for industrial batteries, automotive maintenance free (MF) sealedbatteries, automotive other than maintenance free (NMF) dry batteries and motorcycle batteries have beenworked out separately.

(d) The Authority has followed the consistent policy of adopting the principles governing the determination ofNormal Value, Export Price and Margin of Dumping as laid down in Annexure I of the Anti Dumping Rules.Based on the Normal values and Export prices as indicated above the Authority assessed the DumpingMargins in case of all exporters from the subject countries as given in the table below:-

Type of battery Producers/Exporters Dumping Margin(%)
Singapore
1. Industrial
2. Automotive (NMF)
3. Automotive (MF)
4. Motorcycle
All exporters
All exporters
All exporters
All exporters
250%
70%
70%
80%
Hong Kong
1. Industrial
2. Automotive (NMF)
3. Automotive (MF)
4. Motorcycle
All exporters
All exporters
All exporters
All exporters
271%
182%
182%
19%
Taiwan
1. Industrial



2. Automotive (NMF)
3. Automotive (MF)
4. Motorcycle

a. CSB Battery Co, Ltd.,
b. Pilot Battery
c. All other exporters

All exporters
All exporters
All exporters

17.71%
70.19%
44.87%

23.81%
23.81%
23.81%

The above Dumping Margins are above the de-minimus limits.

Here, it is clarified that " MF" means "Maintenance Free" i.e., filled with electrolyte and ready to use. " NMF"stands for "non- maintenance free".

H. INJURY AND CAUSAL LINK:

The principles for determination of injury set out in Annexure-II of the Anti-Dumping Rules lay down that:

i. A determination of injury shall involve an objective examination of both (a) the volume of dumped importsand the effect of the dumped imports on prices in the domestic market for like article and (b) the consequentimpact of these imports on domestic producers of such products.

ii. While examination the volume of dumped imports, the said Authority shall consider whether there has beena significant increase in the dumped imports, either in absolute terms or relative to production orconsumption in India. With regard to the effect of the dumped imparts on prices as referred to in sub-rule (2)of Rule 19 the Designated Authority shall consider whether there has been a significant price under-cuttingby the dumped imports as compared with the price of like product in India, or whether the effect of suchimports is otherwise to depress prices to a significant degree or prevent price increase which otherwisewould have occurred to a significant degree.

I. CUMULATIVE ASSESSMENT OF INJURY:

Annexure II (iii) under Rule 11 supra further provides that "in case where imports of a product from more thanone country are being simultaneously subjected to Anti Dumping investigation , the Designated Authority willcumulatively assess the effect of such imports , only when it determines that the margin of dumping establishedin relation to the imports from each country is more than two percent expressed as percentage of export priceand the volume of the imports from each country is three percent of the imports of the like article or where theexport of the individual country is less than three percent ,the imports cumulatively accounts for more than sevenpercent of the imports of like article, and cumulative assessment of the imports is appropriate in light of theconditions of competition between the imported article and the like domestic articles".

20. VIEWS OF DOMESTIC INDUSTRY:

Following parameters establish that material injury has been caused to the domestic industry from dumpedimports from the subject countries.

a) The imports have increased in absolute terms.

b) The value of import of the subject goods from subject countries has increased.

c) The imports have increased significantly in relation to production and consumption in India.

d) Production and hence capacity utilization of the domestic industry has increased in terms of number ofbatteries, value of batteries produced and lead consumption.

e) Share of import from subject countries in the import of subject goods in India increased from 24% in 1998-99to 39 % during the period of investigation (in terms of value of imports). In terms of number of batteries also,the share has increased from 21% (98-99) to 48% (investigation period).

f) Sales volume has increased.

g) Productivity of the domestic industry has remained more or less stagnant.

h) Return on investment declined for the domestic industry.

i) Profitability of the domestic industry has significantly deteriorated.

j) Dumped imports are causing price undercutting, price suppression, price depression and price undersellingin the Indian market resulting in erosion of profitability and reduction in the return of investment for thedomestic industry.

k) Average debtors with the domestic industry have increased.

l) Average inventories with the domestic industry has increased.

m) The domestic industry has no option but to increase wages as per prevailing ruled in the country.

n) Cash profit of the domestic industry declined significantly in the period of investigation.

o) Significant decline in profitability of the domestic industry directly resulted into significant decline in cash flowfrom operations of the domestic industry.

p) Productivity, even though has increased in terms of number of batteries produced per employee, the samehas declined in terms of value of batteries (as also in terms of lead) produced per employee.

q) Employment has increased due to increase in capacity by one of the petitioner companies.

r) Even though the domestic industry has shown positive growth, the same is less than market opportunity(growth in the demand).

s) Apart from the injury being suffered by the domestic industry, there is a threat of further injury being causedto them on account of dumped imports.

t) In all the subject countries, capacities created are much higher than domestic demand. Further, due tocollapse of telecom sector in international market, India has become a lucrative market for the exporter fromsubject countries and exporters are forced to export material even at significant dumped prices.

u) During the period of investigation imports from subject countries have increased at a significant rate which iscausing further threat of material injury to the domestic industry;

v) Manufacturers and exporters from the subject countries are holding substantial surplus capacities andstocks.

w) Serious concern of domestic industry is on the price at which the product is being imported. The price atwhich the material is being exported is a dumped price. Further, the material is entering the market at pricesmuch below the selling prices of the domestic industry.

It would thus be seen that the domestic industry has suffered material injury. The imports are further causingthreat of material injury.

21. VIEWS OF EXPORTERS:

M/S CSB BATTERY CO. LTD., TAIWAN AND TAIWAN YUASA BATTERY CO., TAIWAN:

(a) The Anti Dumping Rules require that an independent assessment on injury for each seggregable productcategory-i.e., Automotive and Industrial Batteries must be undertaken, particularly in view of thecategorization made by the Designated Authority in the LAB-I case.

(b) Preliminary findings do not indicate any information or analysis on the market share of the domestic industry.This is an essential requirement of the injury analysis.

(c) Entire injury analysis has been done on the basis of comparing the figures of the period of investigation withthose of 1998-99. No reason has been advanced as to why the same have not been compared to theimmediately preceding period particularly when according to the petition submitted by the domestic industry,dumping started only in the month of October 2000. It is obvious that the comparisons have been done inthis particular manner erroneously to attain dramatic effects.

(d) It has been stated that ‘While the production of the domestic industry during the period of investigationincreased by 35% as compared with that in 1998-99, the sales have increased only by 14% over the sameperiod. This has resulted in lower per unit sales realization and reduction in the profitability of domesticindustry". It can be seen that the conclusion so arrived in the second part of the extracted above has norelevance with the facts/basis given in the first part of the same para.

(e) There is absolutely no analysis or reasoning to support the conclusions and reliance has been placed by theHon'ble Designated Authority on bald statements made by the domestic industry with regard to these issuesundercutting, and price depression. The absence of proper explanation is entirely contrary to the AntidumpingRules and India’s obligations under the WTO Agreement.

(f) On the issue of inventories, it has not been made clear as to what is the unit to assess whether theinventories have gone up or not. This is without prejudice to the contention that all the factors of injuryanalysis ought to have been indexed to provide an opportunity to comment on the same.

(g) The case of the domestic industry with regard to the threat of injury is based entirely on conjectures andsurmises. It has been presumed that there is threat of injury to the domestic industry. None of theparameters to claim threat of injury has been analyzed, let alone substantiated or evidenced.

(h) The threat of injury has been assessed on the ground that the exporters have failed to rebut the same withevidence. It will be contrary to all principles of judicial process that while the petitioners have not dischargedeven their prima facie burden of proof to prove threat of injury, the Designated Authority has shifted the onuson to the exporters to provide the facts failing which it will be presumed that the threat of injury exists. This isobviously an incorrect proposition of law.

(i) M/s Exide Industries, one of the petitioners has imported huge quantities of batteries from China. It wasfurther submitted that the Designated Authority is required to go into the status of the domestic industryirrespective of the timing of the imports. It may be recalled that China was one of the alleged dumpedsources in the LAB-I case.

22. EXAMINATION BY THE AUTHORITY:

(a) The Authority notes that the margin of dumping and quantum of imports from subject countries are morethan the limit prescribed above. Cumulative assessment of the effect of the imports from Taiwan, Hong Kongand Singapore is appropriate since the export prices from these countries were directly competing with theprices offered by the Domestic Industry in the Indian market and displacing domestic producers here.

(b) For the examination of the impact of the imports on the domestic industry in India, the Authority consideredsuch indices having a bearing on the state of the industry as production, capacity utilisation, sales quantum,stock, profitability, net sales realisation, the magnitude and margin of dumping, etc. in accordance withAnnexure II (iv) of the Rules supra.

(c) A number of interested parties opposing the anti dumping investigation have given their views regardinginjury being suffered by domestic industry and the casual link between dumping and injury. It has beenargued that both the petitioner companies i.e., M/s Exide Industries Ltd., and M/s Amara Raja Batteries Ltd.,are enjoying growth and prosperity and there is no evidence of loss of contracts. It has been argued thatsales volume of the domestic industry has increased and the profitability is being maintained. Also it hasbeen argued that the quality of the domestic industry is poor as compared with the batteries being importedfrom the subject countries. It has also been argued that M/s Exide Industries Ltd., is selling batteries in theOEM market at very low prices and in the replacement market these are being sold at almost three times theprice of OEM market. Also M/s Exide Industries Ltd. is selling under DGS&D Rate Contract at pricessignificantly below the import price. It has also been argued that the domestic industry is operating at farabove its installed capacity and is unable to meet the requirement of the Indian market, especially in some ofthe ranges which are not being produced by them at all. The other arguments are that imported batteries arepreferred, especially in the UPS segment due to their better performance, range, service and reliability ascompared to the Indian batteries and also the importers are paying very high rates of customs duties. It hasalso been stated that due to decline in the automotive segment especially in the tractor and commercialvehicle segment, there has been a fall in demand causing injury to the domestic industry. The contraction indemand due to industrial recession in the economy and the change in the pattern of consumption are thecauses of injury to the domestic industry in addition to a number of company specific parameters.

(e) The Authority has taken into account all indices regarding injury while doing the final determination. Thiswould involve all relevant facts viz., volume of dumped imports, their effect on price in the domestic marketand its subsequent effect on domestic producers, production, capacity utilisation, profitability, net salesrealisation etc. While determining the non-injurious price for the like article for the domestic industry, theAuthority considered the optimum cost of production for the domestic industry which would take into accountthe normated best consumption norms and would also take into account the actual price of the raw materialsduring the period of investigation which go into the production of the product under consideration.

(f) With regard to separate assessment of injury, the Authority holds that separate assessment has been donefor different types of batteries to the extent information is separately maintained by the domestic industry.The Authority also notes that Annexure II(vi) provides the effect of the dumped imports should be assessedin relation to the domestic production of the like article when available data permits separate identification ofthat production on the basis of such criteria as the production process, producers sales and profits. If suchseparate identification is not possible, the effects of dumped imports need be assessed with reference to thenarrowest group or range of products, which includes the like product, for which the necessary informationcan be provided. The Authority also confirms that the calculations of non injurious price and injury marginhave been done by determining separate non injurious price for various categories, such as automotivemaintenance free, automotive non maintenance free, motorcycle, industrial maintenance free, industrial nonmaintenance free batteries.

23. MATERIAL INJURY:

The following parameters reveal that the domestic industry has suffered material injury from the dumpedimports and also that there is threat of further injury being caused by dumped imports:

(i) IMPORTS AND THEIR MARKET SHARE: -

(a) Based on the information provided by the DGCI&S and Secondary Sources, the imports from subjectcountries in value as well as number of batteries have increased significantly as compared to previousyears. The same is reflected in the following table:

 1998-99 1999-00 2000-01 Oct-00-Sept 01
 Nos. Value Nos. Value Nos. Value Nos. Value
Imports
Taiwan 164607 654.24 112942 412.58 606559 1893.26 623420 2353.47
Hong Kong 32553 22.33 53478 38.66 193100 247.98 663213 337.48
Singapore 237084 318.41 115269 313.79 253371 707.47 79522 407.25
Subject Countries 434244 994.97 281689765.03 1053030 2848.71 1366155 3098.20
Trend 100 100.00 64.87 76.89 242.5 286.31 314.61 311.39
Other Countries 1589691 3155.68 17631713397.34 2386833 6004.21 20101385053.62
Trend 100 100.00 110.91 107.66 150.14 190.27 126.45 160.14
Total Imports 2023935 4150.65 2044860 4162.37 3439863 8852.92 2855587 8010.91
Market share in Imports
Subject Countries 21.46 23.97 13.92 18.43 30.61 32.18 47.84 38.67
    -+\.    
Other Countries 78.54 76.03 86.08 81.57 69.39 67.82 70.39 63.08

(b) Imports of the subject goods in relation to production of the domestic industry, both in terms of numberof batteries as also value of batteries have been as under: -

 1998-99 1999-00 2000-01 POI
Imports in relation to production    
Number of batteries 7.88 3.84 13.87 18.24
CIF value of imports 1.08 0.75 2.76 3.13

It is evident from the above that the imports have increased in relation to production of the domestic industry. It is also to be noted that while the value of imports considered above is CIF import price. Should the value of imports be considered be considered after including basic import duty, the share would still be higher.

(c) Imports of the subject goods in relation to demand of the product have been as under: -

 1998-99 1999-00 2000-01 POI
Assessed Demand 100.00 108.14 114.38 115.22
Share of    
Imports from subject countries100.00 70.02 250.32 270.26
Imports from other countries100.00 99.56 166.35 138.99
Domestic industry 100.00 100.21 97.62 98.06

It is evident from the above that the share of imports in demand of the product in the Country has also increasedsignificantly.

(d) The above tables shows that there has been a significant increase in imports in a relatively short timeand also rate of growth of dumped imports from subject countries is significant, given the short time inwhich imports have taken place.

(e) The rate of growth of imports of subject goods is more than the rate of growth of domestic production.

(ii) ECONOMIC PARAMETERS RELATING TO THE DOMESTIC INDUSTRY:

The Authority has analyzed various parameters relating to the domestic industry. The same are tabulatedbelow: -

 1998-991999-00 2000-01Oct-00-Sept 01
 Nos. Value Nos. Value Nos. Value Nos. Value
Production 100 100 123.34 108.36 137.82 111.65 140.75 112.98
Lead Consumption 100 100 115.06 114.57 120.68 118.00 122.58 121.58
Sales 100 100 125.85 106.75 141.79 110.44 144.46 114.39
Cost of Sales  100  110.57  114.87  115.96
Production value  100  108.36  111.65  112.98
Inventories 100 100 99.43 108.59 85.94 114.89 107.2 148.73
Employees 100  101.12  109.08  109.7 
Productivity per employee 100  121.97  126.34  128.3 
Productivity per employee  100  107.16  102.36  102.99
Profit/Loss  100  79.41  70.15  66.21
Return on investment  100  66.49  53.04  50.95
Cash Profit  100  89.44  86.50  82.89
Wages per employee  100  140  156  156
Growth (% increase over previous year)  25.85 6.75 12.67 3.45 1.88 3.58

From the above, the Authority notes that: -

a) Production and sales volumes of the domestic industry has increased both in terms of number ofbatteries and value of production. However, it is found that in spite of increase in production and salesvolumes, the profitability of the domestic industry has significantly deteriorated. Thus, increase inproduction and sales volumes have not helped the domestic industry in improving their profits.

b) While cost of sales, production value and sales value have also increased, the increase in the cost ofsales is more than increase in the sales value. This has directly resulted in decline in the profits of thedomestic industry.

c) Inventories of the subject goods with the domestic industry have increased.

d) Profits of the domestic industry have significantly declined. The decline in the profits is in spite ofincrease in the production and sales volumes.

e) Number of employees have marginally increased.

f) Productivity of the domestic industry has improved due to increase in production. However, in spite ofincrease in productivity, the cost of sales have increased more than increase in the sale value, thus,adversely affecting the profits of the domestic industry.

g) Return on investment has significantly declined.

h) Cash profits of the domestic industry have also declined, thus, adversely affecting the cash flow.

i) Wages per employee have increased. However, this increase is more due to the prevailing labor laws inthe Country. Further, the increase in the wages has resulted in further increase in the cost of sales,whereas the domestic industry could not maintain its profits, in spite of increase in productivity andsales volumes.

j) Growth of the domestic industry has declined.

k) Domestic industry has lost significant sales volumes to other the imports from the subject countries. It isfound that one of the customers, M/s. ************** who was catering its 100% requirement from thedomestic sources, had started purchasing from the exporters in the subject countries. In fact, thedomestic industry has represented that the entire requirement of this company was being met.

l) The Authority analyzed the landed price of the exports made by the Cooperating Exporters, salesrealization, cost of production, non injurious price and profit/loss of the domestic industry of similarmodels of Lead Acid Batteries. The results are in the tables below.-

(iii) SIGNIFICANT DECLINE IN THE SELLING PRICE:

(a) The Authority notes that those types of industrial lead acid batteries which were exported by theresponding exporters, the selling price of the domestic industry has very materially declined, as may beseen from the table below:-

Battery Type 1998-99 1999-00 2000-2001 2001-2002 POI
EP SERIES     
EP 4 - 6 100.00 94.41 98.60 88.11 87.69
EP 7 –12 100.00 73.85 67.89 57.57 68.59
EP 10 - 6  100.00 94.41 97.35 91.10
EP 15-12 100.00 71.39 79.45 94.30 74.92
EP 24-12 100.00 103.61 55.92 - 55.32
EP 26-12 100.00 94.73 94.38 91.29 92.86
EP 38-12 100.00 102.19 - - 49.66
EP 42-12 100.00 83.92 91.87 94.31 92.45
EP 65-12 100.00 85.43 98.46 90.14 93.19
EP 80-12   100.00 - 102.00
EP 100 - 12  100.00 85.46 85.37 82.62

(b) A comparison of the selling price of the domestic industry with the landed price of imports showed thatthe imports were significantly undercutting the prices in the market. Those imported batteries whichwere undercutting the prices in the domestic market and which have been examined by the Authority are shown below: -

 CSB Pilot
6V-1.3 AH  ****
6V 3.3AH  ****
EP 4 - 6  ****
EP 7 -12 **** ****
EP 10 - 6  ****
EP 24 - 12  ****
EP 26 - 12 **** ****
EP 42 - 12 **** ****
EP 65 - 12 **** ****
EP 100 - 12 **** ****

(c) The Authority further analyzed the selling price of the domestic industry alongwith cost of production of theparticular type as also the non-injurious price determined by the Authority on the basis of weighted averagecosts for different types. The results are given below:-

 Profit/Loss % Is Price above NIP based on average cost
EP 4 - 6 (**** ****
EP 7 -12 (****) ****
EP 10 - 6 (****) ****
EP 15 - 12 (****) ****
EP 24 - 12 (****) ****
EP 26 - 12 **** ****
EP 38 - 12 (****) ****
EP 42 - 12 **** ****
EP 65 - 12 **** ****
EP 80 - 12 (****) ****
EP 100 - 12 (****) ****

(d) The Authority notes that the domestic industry is selling most of those models which are being importedfrom the subject countries at a loss. Most of these models were below the non-injurious pricedetermined by the Authority on average basis.

(e) The Authority analyzed what percentage these models constituted in terms of total sales of one of thedomestic industry in respect of industrial maintenance free batteries. It is found that these batteries(wherein the imports have been made) constituted about ****% (in numbers) and ****% (in terms ofturnover) of total industrial maintenance free batteries. At the same time, the domestic industry, forwhich detailed analysis was carried out, suffered a net loss in these types of batteries, whereas thecompany made overall profits in industrial segment.

(f) The above analysis leads the Authority to conclude that those types of batteries wherein the imports arebeing made, the domestic industry is either suffering losses or its profitability has significantlydeteriorated. At the same time, possibly, the domestic industry is making profits in those types ofbatteries wherein there are no imports.

(g) There is also likelihood of substantially increased imports from these sources in view of huge productionin these countries. It is further noted that there is surplus capacity available in the subject countries,which could be a matter of concern to the financial performance of the Domestic Industry if the same isutilized for exports to India at dumped prices. Further, existence of significant price undercutting wouldresult in significant increased importation, should the imports continue at dumped prices. Loss of orderby one of the major Indian Producers to the imports from the subject countries is a clear evidence in thisdirection.

(h) The Authority notes that in considering the effect of the dumped imports on prices, it is considerednecessary to examine whether there has been a significant price undercutting by the dumped importsas compared with the price of the like product in India, or whether the effect of such imports is otherwiseto depress prices to a significant degree. For the examination of the impact on the domestic industry inIndia, the Authority considered such further indices having a bearing on the state of industry asproduction, sales, stock, profitability, net sales realization etc. There are a number of parametersevidencing injury and threat of further injury, should the imports be allowed at the present dumpedprices. The rate of increase of imports during the period of investigation from subject countries and thecorresponding fall in the sales realization and profits of the domestic industry are the parameters clearlyshowing the injury being suffered by the domestic industry. On the basis of the evidence availablebefore the Authority, it is determined that the domestic industry has suffered injury and is sufferingfurther threat of injury during the period of investigation.

J. CAUSAL LINK:

24. In determining whether injury to the domestic industry was caused by the dumped imports, the Authority tookinto account the following facts: -

(i) Substantial imports of subject goods from Taiwan, Hong Kong and Singapore at dumped prices forced thedomestic industry to reduce its selling prices to un-remunerative level, which has resulted in a situation ofprice undercutting in the Indian market.

(ii) The imports from Taiwan, Hong Kong and Singapore suppressed the prices of the product in the Indianmarket to such an extent that the domestic industry was prevented from recovering its full cost of productionand earn a reasonable profit from the sale of subject goods in India.

(iii) The imports from subject countries have forced the Domestic Industry to reduce the selling price, which hasadversely affected its profitability.

25. The Authority, therefore, notes from the above that the imports from the subject countries have been at a price below the selling price of the domestic industry. Further, the imports into India have been at a price lower than the non-injurious price for the Domestic Industry. As a consequence thereof the Domestic Industry has not been able to earn a reasonable return. These parameters collectively and cumulatively indicate that the petitioner has suffered material injury due to the dumped imports.

K. INDIAN INDUSTRY'S INTEREST:

26. The purpose of anti dumping duties in general is to eliminate dumping which is causing injury to the domesticindustry and to re-establish a situation of open and fair competition in the Indian market, which is in the generalinterest of the country.

27. The Authority recognizes that the imposition of anti dumping duties might affect the price levels of the products manufactured using subject goods and consequently might have some influence on relative competitiveness of these products. However, fair competition on the Indian market will not be reduced by the anti dumping measures. On the contrary, imposition of anti dumping measures would remove the unfair advantages gained by dumping practices, would prevent the decline of the domestic industry and help maintain availability of wider choice to the consumers of subject goods.

28. The Authority notes that the imposition of anti dumping measures would not restrict imports from Taiwan, HongKong and Singapore in any way, and therefore, would not affect the availability of the product to the consumers.The consumers could still maintain two or even more sources of supply.

L. CONCLUSIONS:

29. The Authority has, after considering the foregoing, come to the conclusion that:

(l) Lead Acid Batteries have been exported to India from Taiwan, Hong Kong and Singapore below its normalvalue;

(ii) The Indian industry has suffered material injury and facing threat of further injury;

(iv) The injury has been caused cumulatively by the imports from the subject countries.

30. The Authority considers it necessary to impose an anti dumping duty on all imports of Lead Acid Batteries fromsubject countries in order to remove the injury to the domestic industry. The margin of dumping determined bythe Authority is indicated in the paragraphs above. The Authority recommend the amount of anti dumping dutyequal to the margin of dumping or less, which if levied, would remove the injury to the domestic industry. For thepurpose of determining injury, the landed value of imports has been compared with the weighted average noninjurious price of the Petitioner Companies determined for the period of investigation.

31. Accordingly, the Authority recommends that definitive anti dumping duties as set out below be imposed from the date of notification to be issued in this regard by the Central Government on all imports of lead acid batteriesfalling under customs code 8507 originating in or exported from subject countries. For the purpose of calculationof anti dumping duty, the Authority has converted the normal value and the export price calculated per kgweight of the dry battery in the case of automotive batteries other than the maintenance free batteries and perkg of gross weight of the filled and sealed battery in the case of maintenance free automotive and industrialbatteries. In case of industrial batteries, since no evidence of imports of dry lead acid batteries is available theduties as applicable to maintenance free sealed batteries shall apply to dry lead acid batteries also. The antidumping duty shall be the difference between the amount mentioned in column 3 and landed value of importper kg of the battery for all exporters/manufacturers from the countries named in column 1 of the table below:-

Type of battery
(1)
Producers/Exporters
(2)
Amount in US$ per kg
(3)
Singapore
1. Industrial
2. Automotive (NMF)
3. Automotive (MF)
4. Motorcycle
5. All other Lead Acid Batteries/accumulators

All exporters
All exporters
All exporters
All exporters
All exporters

2.99
2.11
2.03
3.69
3.69
Hong Kong
1. Industrial
2. Automotive (NMF)
3. Automotive (MF)
4. Motorcycle
5. All other Lead Acid Batteries/accumulators

All exporters
All exporters
All exporters
All exporters
All exporters

2.99
2.10
2.03
3.69
3.69
Taiwan
1. Industrial



2. Automotive (NMF)
3. Automotive (MF)
4. Motorcycle
5. All other Lead Acid Batteries/accumulators

a. CSB Battery Co, Ltd.,
b. Pilot Battery
d. All other exporters

All exporters
All exporters
All exporters
All exporters

2.99
2.99
2.99

2.11
2.03
3.69
3.69

Here, it is clarified that " MF" means "Maintenance Free" i.e., filled with electrolyte and ready to use. " NMF"stands for "non- maintenance free".

32. Landed value of imports for the purpose shall be the assessable value as determined by the Customs under theCustoms Act, 1962 and all duties of customs except duties under sections 3, 3A, 8B, 9 and 9A of the CustomsTariff Act, 1975.

33. Subject to the above, the Authority confirms the Preliminary Findings dated 5th April, 2002.

34. An appeal against this order shall lie before the Customs, Excise and Gold (Control) Appellate Tribunal inaccordance with the Act, supra.

Sd/-
(L.V. SAPTHARISHI)
DESIGNATED AUTHORITY


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