China: DeHeng Help TSAKER Group Win The Sunset Review Of Anti-Dumping Investigation Initiated By Indian Authority
Last Updated: 27 February 2019

Recently, the Directorate General of Trade Remedies (hereinafter also referred to as the DGTR or the Authority), Ministry of Commerce and Industry, India, terminated the sunset review of anti-dumping investigation concerning imports of "4, 4 Diamino Stilbene 2, 2 Disulphonic Acid" (DASDA)) originated in or exported from China. No anti-dumping duty would be imposed on Tsaker Chemical Group Limited (hereinafter also referred to as TSAKER Group). At this point, the seven-year anti-dumping investigation officially came to an end. This is not only the success of TSAKER Group, but also the victory of China DASDA industry.

In July 2012, the Authority initiated an anti-dumping investigation against DASDA originating in or exported from China after reviewed the application submitted by M/s Deepak Nitrite Industries Ltd (hereinafter also referred to as the Petitioner or Applicant) on behalf of Indian domestic industry. TSAKER Group appointed DeHeng Law Offices (hereinafter also referred to as DeHeng) to represent its subsidiary Hebei Hua-Chem Dyestuff Chemical Co., Ltd. (later renamed as "TSAKER Chemical (Dongguang) Co., Ltd." and "Hebei TSAKER Chemical Co., Ltd." in succession) in response to the investigation. In 2013, the Authority made a definitive ruling that our Client would be levied an anti-dumping duty of $270/MT while other Chinese producers/exporters were $460/MT. In October 2015, the Authority initiated the Mid-term Review investigation. Still represented by DeHeng, TSAKER Chemical (Dongguang) Co., Ltd. (hereinafter also referred to TSAKER (Dongguang)) reduced the anti-dumping duty to $99/MT, while that of other Chinese producers/exporters rose to $477/MT.

TSAKER Group, listed on the main board of Hong Kong Stock Exchange, is a world leading manufacturer of dyes/pigments/pesticide intermediates. TSAKER Group has the world's largest DASDA and DMSS production bases and its mononitrotoluene (MNT/NT) production base is among the top 3 in the world. TSAKER Group's production of DASDA rank first in the world accounting for more than 50% of the world market share. During the Sunset Review, TSAKER (Dongguang), together with its related companies TSAKER Chemical (Cangzhou) Co., Ltd. and TSAKER Technology (Beijing) Co., Ltd., filed response to the investigation on behalf of Chinese domestic industry. DeHeng once again accepted TSAKER Group's entrustment and quickly developed a general defense strategy.

In terms of dumping defense, DeHeng analyzed and processed the information collected from TSAKER (Dongguang) and its two related companies, and submitted a complete Exporter's Questionnaire Response as well as supporting documents in a timely and accurate manner. During the on-site verification by the designated Officers at TSAKER Group's premises, lawyers fully cooperated with the Client in exhibition of the TSAKER Group's Accounting System, verification of concerned data and explanation to the sample invoices.

In terms of injury defense, DeHeng noticed that in its Petition, the Applicant intentionally evaded the crucial points by submitting far less adequate proof when talking about the material injury Domestic Industry has suffered. As per the best available information, lawyers proved that the overall performance of India's Domestic Industry during the investigation period had been improving. Certain injury indicators claimed were not caused by imports of DASDA from China, but by the Applicant's own problems such as the closure of factory and insufficient supply of raw materials. In response to the allegation of TSAKER Group's overcapacity, DeHeng suggested TSAKER Group collect detailed official notification and figures from public sectors and processed those fragmented information into organized evidence to clarify that TSAKER Group's true intention of building a new plant was to maintain continued supply of DASDA once the current factory shut down in near future.

Following a comprehensive investigation, the Authority concluded that the imports from China were not being sold below the non-injurious price of India's Domestic Industry and observed that the existing anti-dumping duty since 23rd January, 2014 had served the intended purpose and therefore should be ceased.

It has been nearly seven years since Indian Authority initiated the original anti-dumping investigation against DASDA originated in or exported from China in 2012. "TSAKER Group couldn't have succeeded without every single employee's perseverance and faith in the lawyers", said Partner Ren Yongzhong, Beijing DeHeng Law Offices.

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