India imposes ADD on linear alkyl benzene imports from Iran & Qatar
The investigation was initiated in response to a petition filed by Nirma Limited and Tamilnadu Petroproducts Limited, who represent the Indian domestic LAB industry. The product under consideration is a key intermediate used in the manufacture of synthetic detergents. It is classified under tariff code 3817 00 11 of the Customs Tariff Act. The investigation covered the period from October 1, 2022, to September 30, 2023, with an injury analysis dating back to April 2020.
The DGTR's investigation revealed that LAB was being exported to India from Iran and Qatar at prices significantly below its normal value, constituting dumping. The dumping margin was found to be both above the de-minimis level and significant, as per DGTR’s notification No 6/05/2024-DGTR dated March 29, 2024.
Over the injury period, the volume of dumped imports rose sharply, both in absolute terms and relative to Indian production and consumption. These imports undercut domestic prices, suppressed price increases, and caused a decline in key performance indicators of the Indian industry, including production, capacity utilisation, profitability, market share, and cash profits. The inventory levels of the domestic producers also surged by 102 per cent compared to 2020-21.
The investigation concluded that:
- Imports from Iran and Qatar were dumped into the Indian market.
- The domestic LAB industry suffered material injury as a result of these dumped imports.
- The injury could not be attributed to any other known factors.
In light of these findings, the DGTR recommended the imposition of anti-dumping duties under the ‘lesser duty rule’, ensuring the duty does not exceed what is necessary to offset the injury caused to the domestic industry. The duties, to be collected for five years, vary depending on the country of origin and the producer/exporter. Key duty rates include:
- $14/MT on LAB exported directly from Iran by Iran Chemical Industries Investment Co.
- $31/MT on LAB exported from Qatar by SEEF Limited.
- $54–62/MT on exports involving other producers or third-country transshipments.
The notification of the duty will be issued by the central government and enforced for a period of five years.
Fibre2Fashion News Desk (KD)
