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Anti-dumping duty imposed on PTA from Spain 

S Venkitachalam  
New Delhi, May 2: The designated authority set up in the commerce ministry to probe dumping cases has proposed definitive anti-dumping duty of Rs 521 a tonne on pure terephthalic acid (PTA) originating from Spain on grounds of injury to Reliance Industries Ltd (RIL), the only manufacturer of the product. During the preliminary and final findings, the authority concluded that RIL had suffered material injury on account of decline in sales realisation and profits during the period of investigation from April 1 to December 31, 1998. DMT and PTA are like articles. The authority, however, held that RIL had the requisite standing to file the petition and a reference to DMT for the purpose was not relevant as DMT producers were not a party to the investigations.

The authority also noted that PTA had been exported by Spain below the normal value, resulting in dumping. It had also established a casual link between dumping and injury-the two parameters allowed to be employed by the authority to determine material injury to RIL under the present rules.The authority however does not intend to impose any anti-dumping duty on PTA imported from Japan, Malaysia and Taiwan against which also RIL had filed a petition. This was because there had been no import of PTA during the period of investigation by the authority, from April 1 to December 31, 1998 and no casual link between dumping and injury could be established arising from imports from these countries.

The authority noted that PTA produced by RIL had characteristics closely resembling PTA imported from the countries in question.

Earlier, the government had imposed final anti-dumping duties on PTA originating from South Korea, Thailand and Indonesia. The duties varied from Rs 463 a tonne on PTA imported from one of the companies in South Korea to Rs 3,375 a tonne on the product imported from Indonesia. In the case of imports from Thailand, the duty slapped was Rs 1,769 a tonne.

In imposing the duties, the authority had sufficient prima facie evidence that the export prices of PTA had been lower than the normal value and the product was being dumped by these countries and had caused material injury to the domestic industry.

The authority's investigations followed petitions filed separately by Bombay Dyeing and Manufacturing Company Ltd as well as RIL in accordance with the Customs Tariff (Amendment) Act, 1995 and Customs Tariff (Identification, Assessment and Collectioin of Anti-Dumping Duty on Dumped Articles and for Determination of Injury Rules), 1995.

At that time, RIL had imported PTA from the above countries and had therefore been excluded from the definition of domestic industry in accordance with the Rules.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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