The Department of Commerce under Ministry of Commerce and Industry, Govt of India had issued a notification for investigation to initiation of Anti-Dumping duty on imports of ‘Veneered Engineered Wooden Flooring” originating in or exported from China, Malaysia, Indonesia and European Union in February 17, 2017. Accordingly the authority has initiated the investigation into the alleged dumping, and consequent injury to the domestic industry in terms of Para 5 of the Customs Tariff Rules, 1995.
It is reported that the initiation of the regulation is on the wake of Greenlam Industries Limited filed application before the designated authority in accordance with the Customs Tariff Act, 1975 as amended Customs Tariff Rules, 1995 for imposition of anti-dumping duty on imports of said article. It has been said in the application that import of “Veneered Engineered Wooden Flooring” is entering the Indian market at dumped price and such imports can cause injury to the like product of domestic industry.
Greenlam claimed in their application that imported goods are not different from the domestically produced engineered wood floorings. And the two are technically and commercially substitutable and, hence, should be treated as ‘like article’ under the Rule. For the purpose of the present investigation, the designated authority has treated the subject goods produced by the Indian manufacturers as ‘Like Article’ to the good imported from the said countries. The present investigation is in respect of alleged dumped imports of Veneered Engineered Wooden Flooring from China, Malaysia, Indonesia and EU.
Due to significant increase in imports in absolute terms, price depression, price underselling and consequent adverse impact on inventories, profitability, return on capital employed, and cash flow of the domestic industry the domestic industry has suffered material injury from dumped imports. Greenlam said in the application that the production, sales, capacity utilization and market share of the domestic industry is quite low considering the demand for the product in the country the domestic industry commenced commercial production sometime back.
Having regard to the above rules, the authority has found sufficient evidence of dumping of engineered wood flooring from the said countries under investigation. Due to this they justify initiation of anti-dumping investigation to determine the existence, degree and effect of alleged dumping and to recommend the amount of antidumping duty, which if levied, would be adequate to remove the ‘injury’ to the domestic industry. The matter is under consideration to the authority for the recommendation of imposition of anti dumping.