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Sep 07, 2022
India Extends Anti-Dumping Duty For Three Years On SBR Import From EU, South Korea And Thailand

In a major relief for the domestic producers, the government of India extended the levy of anti-dumping duty (ADD) on the styrene-butadiene rubber (SBR) for the next three years. Originally levied in 2017 for five years beginning August 30, 2017, which was in May this year extended till October 31, 2022. Now, the present extension will attract duty between US$ 33.95 and 266 per tonne from SBR imports from European Union, South Korea, and Thailand.

Through a notification issued late Tuesday, the Directorate General of Trade Remedies (DGTR) said, "Under given circumstances, the authority considers it appropriate to recommend continuation of existing quantum of ADD on the imports of the SBR from European Union, South Korea, and Thailand. It would address and mitigate the likelihood of dumping and injury from these countries. Thus, the authority considers it necessary to recommend continuation of existing definitive anti-dumping duty equal to the damage caused for a period of three years".

Amount of anti-dumping duty levied on emulsion styrene butadiene rubber (E-SBR) by India
Country of origin/export Amount (US$/tonne)
South Korea (Kumho Petrochemical Co Ltd) 33.95
South Korea (Other producers) 64
European Union 266
Thailand 243.60

Source: Directorate General of Trade Remedies (DGTR)

In absence of this extension, the ADD levy was scheduled to expire on October 31, 2022. SBR is the highest volume of general-purpose synthetic rubber used across a broad spectrum of applications, spanning everything from car tyres, shoe soles and heels, drive couplings, automotive parts, and mechanical rubber goods. A large proportion of SBR is also used in latex form as an adhesive.

In order to make a long-term business plan for both primary manufacturers and users of synthetic rubber, Indian industries had urged the government whether the ADD would expire on October 31, 2022, and its import would start thereafter, or the government would take a considered view for the benefit of domestic industries to extend ADD for a couple of years more.

In fact, Reliance Industries Ltd which constitutes around 50 percent production of SBR in India, filed an application before the designated authority for sunset review investigation of ADD on import of SBR originating in or exported from the European Union, South Korea, and Thailand. The application was supported by Indian Synthetic Rubber Pvt Ltd.

The original ADD investigation concerning the import of SBR from these countries was initiated in January 2016. In its investigation, the authority found dumping of SBR in India at cheaper than the prevailing market price. Also, domestic importers were selling the raw material at lower than the spot market price. Convinced by these findings caused injury to the Indian companies, the authority levied ADD on the import of SBR for a period of five years.

In the present case, the authority initiated a sunset review investigation in February 2022 and sought comments from all stakeholders including the applicant Reliance Industries Ltd, producers and exporters from European Union, South Korea, and Thailand, and importers and users industries in India.

While Polymerupdate could not approach all industry stakeholders for their comments, industry representative bodies Automotive Tyres Manufacturers' Association (ATMA) and All India Rubber Industries Association (AIRIA) preferred not to comment on the issue. Attempts to reach the respective head of these associations proved futile. An email sent to Rajiv Budhraja, Director General of ATMA, and Parmanand Goyal, Chairman of Indian Synthetic Rubber Pvt Ltd did not elicit any response. AIRIA president Sawar Dhanania did not respond to Polymerupdate calls. An industry stakeholder, however, said that it is big relief for the Indian SBR manufacturers.

Apparently, ATMA made legal submissions on behalf of the participating users, and the European Commission in this regard. The period of investigation was considered for the 12-month period between October 2020 and September 2021. But, the injury analysis period of investigation was considered for the preceding three years between 2018-19 and 2020-21.

The DGTR notification further said that India had imported 69,838 tonnes, 57,910 tonnes, and 73,002 tonnes during the financial year 2018-19, 2019-20, and 2020-21 cumulatively from these three countries while the import from other countries stood at 4566 tonnes, 2478 tonnes and 13,829 tonnes in the aforesaid three years respectively.

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