• PAGE ONE
• INDEX
• HOME

Provisional duty mooted on theophylline, caffeine

Our Bureau

NEW DELHI, Jan. 10

THE Designated Authority in the Commerce Ministry has recommended the imposition of provisional anti-dumping duties on all imports of theophylline and caffeine from the European Union (EU).

In its preliminary findings, the Authority has recommended that a provisional anti-dumping duty equivalent to the difference between $10,686 per tonne and the ``landed value'' of imports per tonne be imposed on theophylline imported from the member-count ries of the EU.

On caffeine imports from the EU, the Authority has recommended that a provisional anti-dumping duty equivalent to the difference between $11,486 per tonne and the ``landed value'' of imports per tonne be imposed.

The petition seeking anti-dumping investigations on theophylline and caffeine imports from the EU had been filed by Kores (India) Ltd, Thane, Bakul Aromatics & Chemicals Ltd, Mumbai and Valiant Industries Ltd, Mumbai, on behalf of the domestic industry.

While theophylline is used for pharmaceutical formulations, caffeine is used in beverages and soft drinks. There were no imports of theophylline from the EU till 1998-99. However, in 1999-2000, imports of theophylline stood at 32.5 tonnes as against the total Indian market size of about 300 tonnes.

The Authority, which has used the dumping margins calculated in the case of BASF AG for all the exporters from the EU, has used the information provided by BASF AG on the domestic sale price in the EU for arriving at the ``normal value''.

While the margin of dumping in respect of theophylline (including its derivatives and salts) exported by BASF AG stood at 229 per cent of the export price, the dumping margin on caffeine exports by BASF AG stood at 177 per cent.

In its preliminary findings, the Authority concluded that theophylline and caffeine of EU origin had been exported to India below their ``normal value''. Further, it held that the Indian industry had suffered ``material injury'' which had been caused by the imports from the EU.

In determining whether material injury to the domestic industry was caused by the dumped imports, the Authority noted that substantial imports of theophylline and caffeine from the EU at dumped prices forced the domestic industry to keep its selling pric es at unremunerative levels which resulted in a situation of price undercutting in the Indian market.

Further, the imports from the EU had suppressed the prices of the product in the Indian market to such an extent that the domestic industry was prevented from recovering its full cost of production and earn a reasonable profit from the sales of theophyll ine and caffeine in India.