Date:04/10/2005 URL: http://www.thehindubusinessline.com/2005/10/04/stories/2005100403410400.htm

Back Dumping probe ordered on cellophane imports from China

G. Srinivasan

New Delhi , Oct. 3

THE Designated Authority in the Commerce Ministry has set off an anti-dumping investigation on imports of cellophane transparent film from China, which is widely used in wrapping confectionery and other eatables.

Cellophane transparent film is a re-generated cellulose film of glass clear transparency and luminosity. It is flexible but tough and withstands all the pummelling in an automatic packaging operation and possesses exceptional machinability as well as dimensional stability.

Transparent paper is used as a packaging material with characteristic features such as excellent printability, stable tensile properties, moderate tearing strength and non-toxicity which allows it to be used in wrapping confectionery and other eatables.

In its just issued initiation notification, the Authority said that it has received a written petition from Kesoram Rayon, unit of Kesoram Industries, Kolkata, West Bengal.

The applicant has argued that goods produced by it are like articles to the goods originating in or exported from China and hence for the purpose of present probe, the goods produced by the applicant company is being treated as like article to the product imported from the subject country.

The applicant has furnished details on various parameters including to material injury.

Parameters such as significant spurt in imports in absolute terms as also relative to production and consumption in India, marked price undercutting leading to price depression in the market, decline in sales value despite increase in sales volumes, pronounced erosion in profits, cash flow and return on investments, distinct decline in market share of the domestic industry and fall in employment collectively corroborate that the domestic industry has suffered material injury on account of dumping of subject goods from China.

The period of investigation is April 1, 2004 to March 31, 2005, while the injury investigation period will however cover the span 2001-02 to 2003-04 and the period of investigation.

The Authority held that there is enough evidence that the normal value of the subject goods in China is significantly higher than the ex-factory export price indicating that the subject goods are being dumped by exporters from there.