Taiwan.
77. Transcend Information (Shanghai) Co Ltd, China PR, Transcend Trading (Shanghai) Co Ltd, China PR and Transcend Information Inc, Taiwan are related parties.
Transcend Information (Shanghai) Co Ltd, China PR
78. The following are stated in the EQ response and subsequent information filed by Transcend Information (Shanghai) Co Ltd, China PR:
i. Transcend Information (Shanghai) Co Ltd, China PR is wholly owned by Memhiro Pte Singapore, which is 100% owned by Transend Information, Taiwan.
ii. Transcend Information (Shanghai) Co Ltd, China PR is a producer of subject goods in China. It has only one plant in China
iii. Required raw materials for the subject goods are supplied by Transend Information, Taiwan.
iv. For exports to India, Transcend Information (Shanghai) Co Ltd, China PR has only one channel of distribution. All Indian sales are made through Transend Information, Taiwan.
v. Transcend SH only sells to the distributor in India market.
vi. Transend Information, Taiwan handles the India sales for Transcend Information (Shanghai) Co Ltd, China PR.
vii. All domestic sales are sold by Transcend Information (Shanghai) Co Ltd, China PR during the POI.
79. The following are stated in the EQ response and subsequent information filed by Transend Information, Taiwan:
i. Transend Information, Taiwan is the parent company of Transcend Information (Shanghai) Co Ltd, China PR.
ii. Transend Information, Taiwan is a producer of subject goods in Taiwan. It has only one plant in Taiwan.
iii. During the POI, it exported to India subject goods manufactured by itself and also by Transcend Information (Shanghai) Co Ltd, China. iv. For exports to India, the Company has two channels of distribution –
distributors and resellers.
v. The Company has several channels of distribution in the home market.
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vi. C Tech Corporation is another Taiwan company related and involved in the production/sale of subject goods, but was dissolved in 2013. C. Tech Corporation, Taiwan was involved in resale of subject goods in Taiwan.
vii. Transend Information, Taiwan also exported the subject goods to Transtech Trading (Shanghai) Co Ltd, China PR for sales in China PR.
viii. C. Tech Corporation, Taiwan and Transtech Trading (Shanghai) Co Ltd, China PR are not involved in the export of subject goods to India.
Transcend Trading (Shanghai) Co Ltd, China PR
80. The following are stated in the EQ response and subsequent information filed by Transcend Trading (Shanghai) Co Ltd, China PR:
i. Transcend Trading (Shanghai) Co Ltd, China PR has no export of subject goods to India during the POI.
ii. The Company is involved only in domestic sales in China.
81. In response to the queries raised by the Authority, the following have been informed by the Transcend group companies in China and Taiwan:
i. Transcend Information (Shanghai) Co., Ltd., China PR is 100% owned by Transcend Information Inc, Taiwan.
ii. No export license needed for foreign market sales.
iii. No other party involved in the production and export of the subject goods to India during the POI except above mentioned.
iv. Transcend SH is the exporter of the subject goods while the goods are shipped directly from China to India. However, Transcend TW acts like a trader and re-invoices India sales back-to-back.
v. Transcend SH is the owner of the subject goods exported to India. vi. Transcend Taiwan handles the export sales for Transcend China
including its own products. Transcend, Taiwan purchases the finished goods from Transcend China PR for resale in domestic market sales in Taiwan.
62 Examination by the Authority
82. From the information furnished by the Company, the Authority notes that during the POI Transcend Information (Shanghai) Co Ltd, China produced ***Pcs of subject goods, whereas Transcend Information Inc, Taiwan produced only *** Pcs constituting about ***% of the production of Transcend Information (Shanghai) Co Ltd, China. During the POI, Transcend Information (Shanghai) Co Ltd, China exported ***Pcs of product under consideration to Transcend Information Inc, Taiwan for sales in domestic market of Taiwan and exports to countries including India.
83. In the EQ response, Transcend Information (Shanghai) Co Ltd, China declared that the Company has only one channel of distribution as regards sales to India during the POI. It was further declared that Transcend Information, Taiwan handles the India sales for Transcend Information (Shanghai) Co Ltd, China. Subsequently, in response to queries raised by the Authority, it was informed that subject goods are also being exported to India through its related company in Taiwan namely Transcend Information, Taiwan. On being questioned about the reasons for adopting such a circuitous channel of export to India by involving additional expenditure when the Company is as such involved in direct physical export of subject goods to India, it was explained that Transcend Information, Taiwan acts as a distribution hub for the group and the additional cost of transporting the goods to Taiwan physically is negligible. However, from the information furnished by the Company, it is difficult to understand why a Chinese producer, who has got an established channel of direct export to India and invoicing through its related Taiwanese company would prefer to physically export the subject goods to its related party in Taiwan for exporting to India by incurring logistic inconvenience, additional transportation, cargo handling charges, bank charges etc.
84. Although it was declared in the EQ responses that no other party other than the related Transcend companies are involved in the production and export of the subject goods to India during the POI, from the information provided in the EQ response it was noted by the Authority that during the POI, Transcend China and Transcend, Taiwan also exported significant volume of subject goods through ***, Singapore and ***, Singapore, who have not cooperated and filed EQ response in the present investigation. This kind of sales to India represents a third channel, which was not declared in the EQ response filed by the respondent companies. Since during the POI the entire exports of Transcend Information (Shanghai) Co Ltd, China PR to India were invoiced through Transend Information, Taiwan and a substantial volume of the subject
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goods produced by Transcend Information (Shanghai) Co Ltd, China PR was exported by Transend Information, Taiwan to India along with the subject goods produced by itself, the entire exports virtually becomes the exports of Transend Information, Taiwan. From the information furnished by Transcend, *** pcs of subject goods were exported to India through ***, Singapore and *** pcs of subject goods were exported to India through ***, Singapore, together constituting about ***% of the total exports made by Transcend China and Transcend Taiwan to India during the POI. This position contradicts the declaration of the companies in the EQ responses that no other party is involved in the production and export of the subject goods to India during the POI.
85. The Authority notes that in the absence of exporter’s questionnaire response by ***, Singapore and ***, Singapore, through whom significant volumes of subject goods have been channelized by the Transcend group companies in China PR and Taiwan to India during the POI, the complete value chain is absent and the export price claimed by Transcend Information (Shanghai) Co Ltd, China PR and Transend Information, Taiwan cannot be treated as representative of these companies. In view of the above position, the Authority does not accept the EQ response filed by Transcend Information (Shanghai) Co Ltd, China PR and Transend Information, Taiwan and does not determine individual margins for the said companies.
F. MARKET ECONOMY TREATMENT, NORMAL VALUE, EXPORT PRICE AND