Page 321 - Manual Of SOP

Manual of OP for Trade Remedy Investigations

of the product is continued activity as a compulsion and it is not possible for the
DI to regulate the production, it is most often found that the volume parameters
such as production, sale, capacity utilization do not show a declining trend despite
dumping and the effect of imports is more pronounced on price parameters such as
profits, cash flow, return on investment, etc.. What is relevant in this regard is the
identification of parameters which show that the performance of the DI is adversely
impacted by dumped imports.

Material Retardation
11.7.49. The material retardation is evaluated for a DI, which is not yet established
and which has not yet performed for a reasonable period of time. These DIs are
in nascent (just started) or embryonic stages(in process of starting). Therefore, it
becomes difficult to assess or evaluate the impact of dumped imports on these
industries. Hence, the analysis in such cases focuses on whether the imports are
retarding the establishment of the DI, and for this reliance can be placed on project
report of the company on the basis of which the plant was commissioned. In
other words, in a case of material retardation, it has to be examined whether the
newly established industry would be viable but for the alleged dumping. Material
retardation of the establishment of the DI is examined in terms of the existence
of the material injury or threat thereof. It mainly involves the examination of the
following:
(i) the ability to produce a marketable product;
(ii) the product being qualitatively acceptable to purchasers; and
(iii) the ability to sell the product at a price that is competitive with fairly traded
imports.

11.7.50. The analysis of above mentioned known factors and any other factor (such
as the actual or potential production capability of an industry) as claimed by the DI
in their application may be regarded while considering whether the establishment
of a DI has been materially hindered. The claims of the DI should be supported by
positive evidence to the effect that the industry has plans for the establishment
at an advanced stage, and financial commitments had been entered into by the
prospective producers. Further, Authority may do the monthly or quarterly analysis
for evaluating the material retardation .
10
10 Final Finding is anti-dumping investigation on imports of PVC flex film originating in or exported from China PR No.
14/04/2010-DGAD dated July 29, 2011;Final Finding is anti-dumping investigation on imports of Non-woven Fabric
originating in or exported from Malaysia, Indonesia, Thailand, Saudi Arabia and China PR, F.No. 14/23/2015-DGAD
dated September 2, 2017; Final Finding is anti-dumping investigation on imports of O-Acid originating in or exported
from China PR, F.No. 14/31/2016-DGAD dated December 19, 2017.

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