Staff Reporter | 10 Jul, 2008
The Designated Authority in the Commerce Ministry has initiated an anti-dumping investigation on imported plastic-processing machinery from China as the subject goods are allegedly dumped into the domestic market, resulting in material injury to the indigenous industry.

The dumping allegation has been levelled by the domestic producer of the machinery - L&T Demag Plastic Machinery Ltd, Chennai which has presented an application to the Authority seeking initiation of dumping probe into China on the subject.

Three other companies - Ferromatik Milacron India Ltd, Ahmedabad; Windsor Machines Ltd, Thane; and Electronica Machine Tools Ltd, Pune - are also known to have the capacities to produce the subject goods.

Since the applicant company constitutes a preponderant share in the indigenous production, the authority has begun the probe on the basis of the standing of the domestic company that appealed for action.

The subject goods under probe are all kinds of plastic processing or injection moulding machines, also known as injection presses with clamping force not less than 40 tonnes and are used for processing or moulding of plastic materials.

The authority held that the applicant domestic industry has furnished details on volume and value of dumped imports from China and various parameters pertaining to injury to the domestic industry due to the dumping of the subject goods.

Parameters such as increase in volume of imports, both in absolute terms and in relation to the demand of the products, loss in market share, price undercutting, profitability and cash loss in the manufacturing of subject goods essentially show that the dumped import of the subject goods from China has caused material injury to the domestic industry.

The period of dumping probe for the purpose of the investigation is from January 1, 2007 to December 31, 2007 and the authority said that the producers of the subject goods in China are operating under non-market economy condition.

As such, export price of the subject goods exported from China has been estimated on the basis of data gleaned from other secondary sources. Adjustments on account of ocean freight, marine insurance, and commission, inland transportation in the country of export and port expenses have been factored in to arrive at the export price at ex-factory level to determine the dumping margin as also injury and causal link, the authority added.