"There is sufficient prima facie evidence that the normal value of theophylline and caffeine in the EU is significantly higher than the net export price indicating that they are being dumped by exporters from the European Union," the designated authority under the commerce ministry said, ordering the investigation.

It said various parameters relating to injury such as suppressed domestic price resulting in low sales realisation, decline in the sales volume of domestic industry, collectively and cumulatively indicated that the domestic industry had suffered material injury on account of dumping by EU. Three Indian firms - Kores (India) Ltd, Bakul Aromatics and Chemicals and Valiant Industries- had filed a complaint with the authority alleging that theophylline and caffeine were being dumped in India from Germany, Belgium, France and Spain.

Providing evidence of dumping of theophylline and caffeine from the four EU member countries, the Indian companies appealed that since there were no customs boundaries in EU between various member-countries, the investigation should be carried out against the entire EU. Accepting their plea, the designated authority said anti-dumping investigation would be carried out against the entire EU territory for alleged dumping during April, 1999 to March, 2000.