i) The Designated Authority (hereinafter also referred to as the Authority) notified preliminary findings vide notification dated 4.10.99 on anti-dumping investigation concerning imports of Barium Carbonate from People's Republic of China (herein after referred to as subject country) and requested the interested parties to make their views known in writing within forty days from the date of its publication;

ii) The Authority forwarded a copy of the preliminary findings to the known interested parties, who were requested to furnish their views, if any, or, the preliminary findings within forty days of the date of the letter;

iii) The Authority also forwarded a copy of the preliminary findings to the Embassy of People's Republic of China in New Delhi with a request that the exporters and other interested parties may be advised to furnish their views on the preliminary findings m the time frame, as stipulated in (i) and (ii ) above.

iv) The authority provided an opportunity to oil interested parties to present their views orally on 15.11,99. All parties presenting views ware requested to file written submissions of the views expressed. The parties were advised to collect copies of the views expressed by the opposing parties and offer rebuttals, if any;

v) The Authority made available the public file to all interested parties containing non-confidential version of ell evidence submitted by various interested parties for inspection, upon request;

vi) Argument raised by the interested parties before announcing the preliminary findings, which have been brought out in the preliminary findings notified have not been repeated herein for sake of brevity. However, the arguments raised by the interested parties subsequently have been appropriately dealt in the preliminary findings and/or These findings;

vii) In accordance with Rule 16 of the Rules supra, the essential facts/basis considered for these findings were disclosed to known interested parties on 3.2.2000 and comments received on the same have also been duly considered in these findings.

2. The views expressed by various interested parties have been discussed in the preliminary findings and also in the disclosure statement. The views which have not been discussed earlier in the preliminary findings and disclosure statement and those now raised in response to the disclosure statement are discussed in the relevant paras herein below to the extent these are relevant as per rules and have a bearing upon the case. The arguments raised by the interested parties hove been examined, considered and, wherever appropriate, dealt in the relevant paras herein below.

The Authority recalls its findings on the product under consideration indicated in para C(l) of the Preliminary Findings.

3 The product under consideration in the present investigation is Barium Carbonate classified under custom sub-heading 2836.60 of the Custom Tariff Act. 1975. Barium Carbonate is classified under sub-heading no, 28366000 under the harmonized ITC system.

Barium Carbonate is an inorganic chemical in the form of a white powder and granules having chemical formula BaCo2 manufactured out of Barytes, a mineral product. Barium Carbonate is produced by reducing carbon in rotary furnace which converts barytes to Barium Sulphide known as black ash, Barium Sulphide is bleached using hot water to extract water soluble water barium sulphide which is then treated with soda ash to obtain Barium Carbonate,

Barium Carbonate is used for purification of brine solution in caustic soda industry. It is also used in production of hard Ferrite Ring Magnets, Television Glass Shell, Neutral gloss, Lamps, Heat treatment salts and other barium salts.

The manufacturing process functions and uses and custom classification indicated above are, however, indicative only and are in no way binding on the scope of the present investigations.

It has been argued by the domestic industry that weatherite is a different name for Barium Carbonate. The authority notes that since there exists an unambiguous dedicated custom head for the product, all forms and grades of Barium Carbonate ore considered under this Head.

D. STANDING OF THE PETITIONER AND INDSUTRY

The Authority recoils its findings on the domestic industry indicated in para 3 of the Preliminary Findings.

4. The petition has been file by M/s Kores and M/s TCM. The petition has been supported by M/s Bilaspur Barytes P Ltd., Calcutta, M/s R K Industrial Chemicals, Hyderabad, M/s. Victory Chemical, Cuddapah and M/s. Barytes Chemie India P. Ltd., Bangalore. The authority on the basis of the available information on the total domestic production of Barium Carbonate concludes for the purposes of preliminary finding that the petitioners qualify the test of standing as indicated in rule 5(3) (a) and 5(3) (b) and with the support of other producers represents domestic industry within the meaning of the rules 2(b)

There is no argument on standing of the petitioners. The authority confirms the findings on the standing of the petitioner and the domestic industry as indicated in para 3 of the Preliminary findings and as reproduced above,

The Authority recalls its findings on like article reproduced in para 2 of the Preliminary Findings.

5. In order to examine whether Barium Carbonate produced by the domestic industry is a Like Article to the Barium Carbonate exported from Peoples Republic of China characteristics such as physical characteristics (purity, density etc.) manufacturing process and technology, functions and uses, product specifications, pricing, distribution and marketing and tariff classification of the goods have been considered.

It has been argued by M/s Videocon Narmada Electronics Ltd, Gujarat that the powder form of Barium Carbonate manufactured locally is not suitable and acceptable for manufacture of colour TV gloss parts as per international standards. It is noticed by the Authority that the differences pointed out ore with reference to quality, losses and pollution control norms. The Authority notices that these differences do not imply that the two goods are not interchangeable. Mere difference in quality would call for price adjustment for the purpose of fair comparison. No price adjustment is however, feasible under the present circumstances in view of un-quantified claim. The Authority also notes that the domestic industry is manufacturing both granular and powder forms of Barium Carbonate. The Authority also notes that the two grades of Barium Carbonate can be used interchangeably, The Authority, therefore, holds that the goods exported from subject countries and goods produced by the petitioner have characteristics closely resembling each other and that the two are technically and commercially substitutable. The goods produced by the domestic industry are a like Article to the goods exported from subject countries within the meaning of the Rule 2(d).

The authority recalls its findings on normal value and export price in para 4 of the Preliminary findings.

Under Section 9A(l)(c), normal value in relation to an article means:

(i) the comparable price, in the ordinary course of trade, for the like article when meant for consumption in the exporting country or territory as determined in accordance with the Rules mode under sub-section (6); or

(ii) when there are no sales of the like article in the ordinary course at trade in the domestic market of the exporting country or territory or when because of the particular market situation or low volume of the sales in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either.-

(a) comparable representative price of the like article when exported from the exporting country or territory or an appropriate third country as determined in accordance with the Rules made under sub-section (6), or

(b) the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling and general costs, and for profits, as determined in accordance with the Rules made under sub-section(6);

Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transshipped through the country of export or such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin.

The Authority had sent exporters questionnaires to all the known exporters' for the purpose of determination of normal value in terms of the Section cited above, However, the authority notes that none of the exporters except M/s Qingdao Red Star Chemical Group Co. Ltd. China (Former name Qingdao Red Star Chemical Factory) has furnished any information Though M/s Qingdao Red Star Chemical Group Co. Ltd, China (Former name Qingdao Red Star Chemical Factory) has furnished the information requested by the Authority, the domestic selling prices hove not been supported by any evidence. In the absence of sufficient evidence from the exporter the Normal Value for the exporter cannot be determined on the basis of the home market prices or export price to third countries.

The Authority notes that the petitioner has not provided domestic prices of Barium Carbonate in the Peoples Republic of China pleading that no reasonable, and authentic information is available. The petitioner(s) have provided export price of the product by Peoples Republic of China to Japan. The petitioner has also provided constructed cost of Barium Carbonate, based on their own costs claiming that they are themselves exporting to a number of countries and, therefore, their cost of production can be o good indicator of the costs which the producers in China must incur for production of Barium Carbonate.

The Authority has, therefore, constructed the Normal value on the basis of the cost data of the Indian industry with appropriate adjustments, in accordance with the rule 6(8) and Section. 9A(l)(c) which authorises the authority to work out cost of production in the country of origin on the basis of the facts available with it.

The Authority has considered ex-factory export price for the cooperating exporter on the basis of the exporter's response and for other non-cooperating exporters on the basis of the port wise import data furnished by the petitioner as also co-related with data furnished by DGCI&S and response by various importers. Petitioner has claimed adjustments for Ocean freight ***$/MT, Ocean insurance***$/M.T, Commission ***$/MT, Inland freight *** $/MT and port expenses ***$/MT. The Authority has allowed adjustments on ocean freight, commission, Ocean insurance, inland freight and port expenses to an extent of ***, ***, ***, *** and ***$MT.

"White arriving at margin of dumping, the designated authority shall make a fair comparison between the export price and the normal value. The comparison shall be made at the same level of trade, normally at ex-works level, and in respect of sales made at as nearly possible the same time. Due allowance shall be made in each case, on its merits, for differences which affect price comparability, including differences in conditions and terms of sole, taxation; levels of trade, quantities, physical characteristics, and any other differences which are demonstrated to affect price comparability."

For the purpose of fair comparison between the normal value and the export price, the Authority has considered taking into account the normal value and export price determined, as detailed above at ex-works level.

The dumping margin for exporters comes as under;

One of the importers has submitted a copy of fax from M/s China Notional Chemical Company, Zhuhai, who have indicated that they did not get the notice or the questionnaire and have refuted the preliminary findings and hove requested for a questionnaire and a hearing. The authority notices that the questionnaires and notices were sent to all exporters whose names were mad available by the petitioners and also to the Embassy of China, New Delhi who were kept informed about the proceedings at all stages and advised to keep the concerned exporters informed, The authority had issued public notice on initiation of the investigations and also regarding the preliminary findings. The authority has assessed the normal value and export price as per the provisions of the rules in view of no substantial information made available by the exporters. The authority confirms the findings on normal value, export price and dumping margin as indicated in paras C(4) and C(5) of the Preliminary Findings and also reproduced above.

For the non-cooperating exporters (indicated as other exporters category), the highest dumping margin as noticed for the cooperating exporters has been referenced. The lowest GIF as noticed for the cooperation exporters corelated with petitioner's data has been referenced for calculation of landed value.

Under Rule 11 supra, Annexure-II, when a finding of injury is arrived at, such finding shall involve determination of the injury to the domestic industry, ".....taking into account all relevant facts, including the volume of dumped imports, their effect on prices in the domestic market for like articles and the consequent effect of such imports on domestic producers of such articles....". In considering the effect of the dumped imports on prices, it is considered necessary to examine whether there has been a significant price undercutting by the dumped imports as compared with the price of the like article in India, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a significant degree.

For the examination of the impact of the imports on the domestic industry in India, we may consider such indices having a bearing on the state of the industry as production, capacity utilisation, sales quantum, ^tock profitability, net sales realisation, the magnitude and margin of dumping, etc. in accordance with Annexure II(iv) of the rules supra.

The Authority concludes that

i) the imports of Barium Carbonate from Peoples Republic of China hove increased in absolute terms from Rs.1142 MT in 96-97 to Rs 8157 MT in 97-98 and further to Rs.9778 MT in 98-99 (POI).

ii) the share of the subject country in the total imports in the country has increased significantly, i.e. from 55.5% in 96-97 to 89% in 97-98 and further to 96.75% in 98-99 i.e. the period of investigation.

iii) exports of Barium Carbonate from the subject country has prevented domestic industry from recovering its cost of production and earn a fair return on its investment resulting in financial tosses to the domestic industry. The net average sales realisation for M/s Kores and M/s TCM has been lower than their cost of production in the period of investigation.

iv) various economic indicators relating to domestic industry such as production, average sales realisation and financial losses collectively and cumulatively established at the domestic industry has suffered material injury.

It is therefore, seen that the domestic industry has suffered material injury from dumped imports. In establishing that the material injury to the domestic industry has been caused by the imports from the subject country, the Authority holds that dumped exports from Peoples Republic of China hove depressed the prices of subject goods in the domestic market and forced the domestic industry to sell at unremunerative prices, resulting in financial losses to the domestic industry. The domestic industry has suffered injury on account of loss in production, sales volume and decline in net sales realisation.

It has been indicated by many users of the subject goods that the quality of the granular barium Carbonate supplied by the domestic industry is not up to the quality as required by them in the manufacture of glass used in the electronics industry. Further, the users have also indicated that the production capacity and supply mechanism of the domestic industry is not dependable. The users hove also indicated that their manufacturing cost per unit is much higher than their selling price and that Barium Carbonate being a vital and critical raw material for electronics industry. The Indian colour picture tube industry save precious foreign exchange outgo to the tune of Rs. 280 crores approximately per annum. The anti-dumping duty may not be imposed on Import of Barium carbonate prilled/small granules grade for the manufacture of colour television glass parts.

The authority holds that the purpose of anti dumping duties, in general, is to eliminate dumping, which is causing injury to the domestic industry and to re-establish a situation of open and fair competition in the Indian market, which is in the general interest of the country.

It is recognized that the imposition of anti dumping duties might affect the price levels of the products manufactured using the 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, particularly if the levy of the anti dumping duty is restricted to an amount necessary to redress the injury to the domestic industry. 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 Barium Carbonate. Imposition of anti dumping measures would not restrict imports from the subject country in any way, and therefore, would not affect the availability of the product to the consumers.

To ascertain the extent of Anti-dumping duty necessary to remove the injury to the domestic industry, the Authority has relied upon a non- injurious selling price of Barium Carbonate in India for the domestic industry, by considering the optimum cost of production for the domestic industry.

(b) The Indian industry has suffered material injury;

It is considered necessary to impose anti dumping duty, provisionally, pending final determination, on all imports of Barium Carbonate originating in or exported from the subject country.

The Authority considered to recommend the amount of anti-dumping duty equal to the margin of dumping or less, which if levied would remove the injury to domestic industry. The average landed value of the imports for individual exporters, for the purpose, were compared with the non-injurious selling price of the domestic industry, determined for the period of investigation. Domestic industry has mentioned that their cost inputs have increased in view of recent steep increase in furnace oil prices and transportation cost increase due to diesel prices. The authority holds that the period of investigation i.e. 1.4.98 to 31.3.99 has been referenced for calculation of the non-injurious selling price.

It is proposed that provisional anti-dumping duties be imposed from the date of notification to be issued in this regard by the central Government on all imports of Barium Carbonate originating in or exported from People Republic of China falling under Chapter 28 Custom Head 2836.60 of the Customs Tariff, pending final determination. The anti-dumping duty shall be the difference between the amounts mentioned in "column 3 below and the landed value of imports per MT.