Amoxycillin: Investigation of Anti Dumping duty

The company has requested the directorate to extend the anti-dumping duty imposed on the imports of the drug originating from China

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Last Updated on September 19, 2021 by The Health Master

The Directorate General of Trade Remedies (DGTR) has initiated sunset review investigation on the need for continued imposition of anti-dumping duties on semi synthetic antibiotic drug amoxycillin trihydrate originating from China based on an application filed by Aurobindo Pharma.

The application, supported by Penam Laboratories Ltd and Centrient Pharmaceuticals India Pvt Ltd, alleged that the dumping of amoxycillin trihydrate originating in or exported from China has continued even after imposition of anti-dumping duty and there is a likelihood for continuation of the dumping and recurrence of injury to the domestic industry.

The company, which has a major proportion of the total domestic production of the antibiotic, has requested the directorate to extend the anti-dumping duty imposed on the imports of the drug originating from China.

The Authority has imposed a definitive anti-dumping duty on the imports of amoxycillin trihydrate from China, through a notification in April, 2017, after an investigation for almost a year. The department of revenue, ministry of finance, imposed the anti-dumping duty through a notification on May 16, 2017.

For the investigation, the product types such as amoxycillin sodium sterile and flucloxacillin sodium sterile, amoxycillin trihydrate compacted ampicillin trihydrate compacted and amoxicillin trihydrate and clauvulanate potassium are excluded from the scope of the product under consideration.

The period of investigation for the latest investigation is April 1, 2020 to March 31, 2021 and the injury period will cover fiscal years from April, 2017 to March, 2020 and the period of investigation.

Aurobindo said that the Chinese producers must be asked to demonstrate that their costs and price information are market-driven and if they are not complying with this, the normal value should be calculated as per the prevailing rules.

The company added that it has not been able to gather information either with regard to costs or prices in a market economy third country, or price from such third country to other countries, including India. It has suggested a normal value for the same products from China on the basis of “any other reasonable basis” as per Para 7 of Annexure I to the Rules.

The company has claimed normal value by considering the export price of 6-APA from China PR and the import price of Methyl Ester into India. The cost of raw material arrived along with the estimated conversion cost and other selling and general administration overheads to produce and sell the final product has been considered to arrive at the cost of production/sales of subject goods. Profit of 5 per cent has been added to arrive at the normal value of the subject goods.

Observing that there is prima facie evidence that the drug is dumped into Indian market by Chinese producers, the Authority in an initiation notification on September 10, 2021, added that there is also prima facie likelihood of continuation or recurrence of dumping and injury to the domestic industry in the event of cessation of duty considering positive dumping margin, export orientation of the producers in China, unutilised capacities there and potential trade diversion and price attractiveness of Indian market.

“On the basis of the duly substantiated written application on behalf of the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted by the domestic industry, substantiating likelihood of continuation/recurrence of dumping of the product under consideration originating in or exported from the subject country and injury to the domestic industry, and in accordance with Section 9A of the Act read with Rule 23 of the Rules, the Authority hereby initiates a sunset review investigation to review the need for continued imposition of duties in force in respect of the subject goods, originating in or exported from the subject country and to examine whether the expiry of such duty is likely to lead to continuation or recurrence of dumping and injury to the domestic industry,” said DGTR.

It has invited information related to the investigation within thirty days from the date of receipt of the notice. Any party making any confidential submission or providing information on confidential basis before the Authority, is required to simultaneously submit a non-confidential version of the same.

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