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Dumping duty mooted on Chinese HV ring magnets

Our Bureau

NEW DELHI, Oct. 29

THE Designated Authority in the Commerce Ministry has recommended imposition of definitive anti-dumping duty on imported hard ferrite ring magnets (HFRM) from China after a review. HFRM finds application in loudspeakers/PA system/ telecommunications and various other applications.

In its notification issued here last week, the Authority held that the subject goods exported from China have been brought into India below its normal value. The domestic industry has suffered material injury by way of depressed net sales realisation (NS R) on account of price suppression caused by low landed prices of the dumped product, leading to financial losses.

Accordingly, the authority has recommended anti-dumping duty on imports of all forms/grades of HFRM originating or exported from China.

It is proposed that definitive anti-dumping duties equal to the difference between the landed value and $1123.8 dollar of all grades and sizes of HFRM should be imposed.

The Authority received a request from DGP Hinoday Industries Ltd, Pune and G.P. Electronics Ltd, Nashik (also referred to as petitioner in this notification) for review of anti-dumping duty imposed on imports of HFRM. Accordingly it resolved, based on su fficient evidence submitted by the petitioner, to initiate review probe against imports of HFRM from China.

The review investigation was carried out for the period April 1, 1999 to June 30, 2000, which is deemed the period of investigation (PoI) for the review.

After noting the submissions of the various parties involved in the probe, the authority held that production of the subject goods by domestic industry has decreased from 5843.20 tonne in 19998-99 to 5108.8 tone in PoI.

Sale of subject goods by domestic industry has decreased from 5843.20 tonne in 1998-99 to 5363.28 tonne in PoI. Capacity utilisation of domestic industry has decreased from 50.85 per cent in 1998-99 to 41.55per cent in PoI.

The net sales realisation (NSR) has also decreased from Rs 41.42 per kg to Rs 39.13 kg. The NSR in PoI is below the non-injurious price as evaluated in the review period of investigation, thereby leading to financial losses to the domestic industry, the Authority said adding that these factors collectively and cumulatively show that the dumped imports have continued to keep prices depressed in the Indian market, causing injury by way of depressed net sales realisation and leading to financial losses to the domestic industry.

Hence the continuance of anti-dumping duties is warranted to protect domestic industry from the injury caused by price depression due to dumped imports, it noted.