MOFCOM Announcement No.37 of 2016 on the Final Review of the Anti-dumping against Imports of Pure Terephthalic Acid Originated in the Republic of Korea and Thailand

August 12, 2016 - 09:43 BJT (16:43 GMT)   MOFCOM

On August 12, 2010, the Ministry of Commerce of the People's Republic of China (the “Investigation Authority”) issued Announcement No.47 of 2010, deciding to conduct anti-dumping measures against imports of pure terephthalic acid originated in the Republic of Korea and Thailand for 5 years from August 12, 2010.

On August 7, 2013, the Investigation Authority released Announcement No.52 of 2013, deciding that LOTTE CHEMICAL CORPORATION inherits 2.0% anti-dumping tax rate and other rights and obligations under the anti-dumping measures for pure terephthalic acid applicable to KP CHEMICAL CORPORATION.

On August 8, 2014, the Investigation Authority released Announcement No.52 of 2014, deciding that Samsung General Chemicals Co., Ltd. inherits 2.0% anti-dumping tax rate and other rights and obligations under the anti-dumping measures for pure terephthalic acid applicable to Samsung Petrochemical Company Limited.

On November 20, 2015, the Investigation Authority released Announcement No.57 of 2015, deciding that Hanwha General Chemical Co., Ltd. inherits 2.0% anti-dumping tax rate and other rights and obligations under the anti-dumping measures for pure terephthalic acid applicable to Samsung General Chemicals Co., Ltd.

On August 10, 2015, in response to the application from the industry of pure terephthalic acid in China, the Investigation Authority released an announcement, deciding to conduct final review investigation into the anti-dumping measures applicable to imports of pure terephthalic acid originated in the Republic of Korea and Thailand.

The Investigation Authority conducted investigation into the possibility of continuation or reoccurrence of dumping of the imports of pure terephthalic acid originated in the Republic of Korea and Thailand and injury to the industry of pure terephthalic acid in China in case of terminating the anti-dumping measures. In accordance with Article 48 of the Anti-dumping Regulations of the People's Republic of China (the “Anti-dumping Regulations”), the Investigation Authority made the ruling on the review (See the Annex). Relevant matters are hereby announced as follows:

I. Ruling

The Investigation Authority ruled that dumping of imports of pure terephthalic acid originated in the Republic of Korea and Thailand to China may continue or reoccur, and the injury to the industry in China may continue or reoccur if the anti-dumping measures were terminated.

II. Anti-dumping Measures

The Investigation Authority, in accordance with Article 50 of the Anti-dumping Regulations and the investigation findings, proposed suggestions on the implementation of the anti-dumping measures to the Customs Tariff Commission of the State Council, which then decided, as of August 11, 2016, to continue imposing anti-dumping duties on imports of pure terephthalic acid originated in the Republic of Korea and Thailand for five years.

The description of the products subject to the anti-dumping duties and rate are the same as set out in MOFCOM Announcement No. 47 of 2010, No.52 of 2013, No.52 of 2014 and No.57 of 2015,i.e. the products subject to the anti-dumping duties in this case are described as follows:

Scope of investigation: Imports of pure terephthalic acid originated in the Republic of Korea and Thailand
Name of the Products under Investigation: 精对苯二甲酸 (English name is Pure Terephthalic Acid).
Chemical formula: C8H6O4
Chemical structural formula: HOOC[C6H4]COOH, as shown below:
　　
Physical and chemical characteristics: pure terephthalic acid is colorless needle crystal or amorphous powder (white crystal or powder in appearance), non-toxic and irritating. Its dust is explosive, can dissolve in aqueous alkali and slightly soluble in hot ethanol and water.

Main purposes: Pure terephthalic acid is one of the bulk organic raw materials, and it is an important base material for polyester fiber and non-fiber polymer. After polycondensation process of pure terephthalic acid with EG, there is PET; moreover, pure terephthalic acid can also generate corresponding ester with the reaction of 1, 4- butyl glycol or 1, 4- cyclohexanedimethanol and others. The downstream processed products of pure terephthalic acid are mainly polyester, including polyester fiber (polyester), non-fiber polyester products such as polyester bottle chips and polyester film, etc.

The product is listed under tariff number of 29173611 in the Customs Import and Export Tariff of the People’s Republic of China.
Rates of anti-dumping duty imposed on companies are as follows:
Companies of the Republic of Korea

Companies of Thailand:
1. Indorama Petrochem Limited 16.9%
2. Siam Mitsui PTA Co., Ltd. 6.0%
3. TPT Petrochemicals Public Company Limited 12.9%
4. All Others 20.1%

III. Methods of Levying Anti-dumping Duties

As of August 11, 2016, import operators shall pay relevant anti-dumping duties to the Customs of the People’s Republic of China when importing pure terephthalic acid originated in the Republic of Korea and Thailand. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: Anti-dumping duties = dutiable value authorized by China Customs x rate of anti-dumping duties. The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and anti-dumping duties as the taxable value.

IV. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the review may, according to Article 53 of the Anti-dumping Regulations, apply for an administrative reconsideration or initiate a litigation to the people's court according to the law.

V. MOFCOM Announcement No.37 of 2016 on the Final Review of the Anti-dumping against Imports of Pure Terephthalic Acid Originated in the Republic of Korea and Thailand will take effect as of August 11, 2016.

Ministry of Commerce of the People's Republic of China

August 10, 2016

(All information published in this website is authentic in Chinese. English is provided for reference only. )