MOFCOM Announcement No. 57 of 2014 on Final Ruling on the Anti-dumping Investigation against Imports of Tertiary Butylhydroquinone

September 10, 2014 - 10:19 BJT (17:19 GMT)   MOFCOM

In accordance with the provisions of the Regulations of the People’s Republic of China on Anti-dumping (hereinafter referred to as the “Anti-dumping Regulations”), on August 22, 2013, the Ministry of Commerce (hereinafter referred to as the “Investigation Authority”) issued an official case-filing announcement, deciding to carry out anti-dumping investigation against imports of tertiary butylhydroquinone originated in India (hereinafter referred to as the “Products under Investigation”).

The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic industry of tertiary butylhydroquinone caused by the Products under Investigation and the extent of such damage, as well as the causal relationship between the dumping and the damage. According to the investigation findings and Article 24 of the Anti-dumping Regulations, the Investigation Authority released on April 29, 2014, an announcement on the preliminary ruling, affirming that there was dumping of the Products under Investigation and the domestic industry of tertiary butylhydroquinone of China was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

Upon the preliminary ruling, the Investigation Authority continued its investigation into the dumping and dumping margin, the damage and the extent of such damage, as well as the causal relationship between the dumping and the damage. The investigation now comes to an end. The Investigation Authority has made the final ruling (See the Annex) according to the provisions of Article 25 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:

I. Final Ruling

Upon investigation, the Investigation Authority made a final ruling that during the investigation period of this case, there was dumping of imports of tertiary butylhydroquinone originated in India, and China's domestic industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

II. Scope of Products under Investigation and Measures

Details of the Products under Investigation and measures of the case are as follows: 
Scope of investigation and measures: Imports of tertiary butylhydroquinone originated in India
Name of products under investigation: Tertiary Butylhydroquinone, Tert-Butylhydroquinone or TBHQ.
Molecular formula: C10H14O2
Chemical structural formula:

Physical and chemical characteristics: Tertiary butylhydroquinone is a kind of white or reddish brown crystal powder with special slight aroma. It is soluble in ethanol, acetic acid, ethyl ester, isopropyl alcohol and vegetable oil and it is barely soluble in water. Its boiling point is 300°C and the melting point is 126.5-128.5°C. It does not change color when in touch with iron and cooper ions, but will change to pink color when alkali exists.

Main usage: It is mainly used as the anti-oxidant for food and edible oil and can prevent most greases and fat from rancidity. It is used to extend the storage period of greases and edible oil. As its anti-oxidation and bacteriostasis, it can also be used as additives in pharmaceutical industry and feed industry.

The products are included under tariff number of 29072990 in the Customs Import and Export Tariff of the People’s Republic of China. Products other than tertiary butylhydroquinone that are included under the tariff number above are not covered in the investigation.

III. Levy of Anti-dumping Duties

The Investigation Authority, in accordance with Article 38 of the Anti-dumping Regulations, proposed suggestions on the levy of anti-dumping duties against imports of tertiary butylhydroquinone originated in India to the Customs Tariff Commission of the State Council, which then decided, as of August 22, 2014, to impose anti-dumping duties on imports of tertiary butylhydroquinone originated in India.

Rates of anti-dumping duties against companies are as follows:

1.For respondent companies that participated in the investigation: 
Camlin Fine Sciences Limited 49.8%
2.For companies set out in the application that did not respond to the investigation:
Nova International 49.8%
Milestone Preservatives P. Ltd. 49.8%
Shevalyn Pharmachem 49.8%
3. All others 
49.8%
IV. Methods of Levying Anti-dumping Duties

As of August 22, 2014, import operators shall pay relevant anti-dumping duties to the Customs of the People’s Republic of China when importing the Products under Investigation. 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.

V. Retrospective Collection of Anti-dumping Duties

Deposits provided by relevant importers to Customs of the People’s Republic of China from April 30, 2014 to August 21, 2014 (inclusive) according to the announcement on the preliminary ruling, shall be transferred on the basis of the scope of commodities taxable and the rate of anti-dumping duties determined by the final ruling to anti-dumping duties, and the import value-added tax shall also be levied according to relevant rate of value-added tax. Any excess of the deposits provided by importers during this period over the anti-dumping duties and the corresponding import value-added tax will be refunded by the Customs, and the short-levied duties will not be levied.

Retrospective collection of anti-dumping duties will not be carried out for imports of tertiary butylhydroquinone originated in India that were imported before the announcement of preliminary ruling.

VI. Period of Levying Anti-dumping Duties

The implementation period of levying anti-dumping duties on imports of tertiary butylhydroquinone originated in India shall be 5 years starting from August 22, 2014.

VII. New Exporter Review

Any new exporter in India that does not export the Product under Investigation to the People’s Republic of China during the investigation period, if qualified, may apply in writing to the Investigating Authority for a new exporter review according to provisions of Article 47 of the Anti-dumping Regulations.

VIII. Interim Review

During the period of levying anti-dumping duties, relevant interested parties may apply in writing to the Investigating Authority for an interim review in light of provisions of Article 49 of the Anti-dumping Regulations.

IX. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the final ruling of this case and the decision to levy anti-dumping duties may, according to provisions of Article 53 of the Anti-dumping Regulations, apply for an administrative reconsideration or initiate a litigation to the people's court according to law.

X. This Announcement shall come into force as of August 22, 2014.

Annex: Final Ruling of Ministry of Commerce of the People's Republic of China on Anti-dumping Investigations Against Imports of Tertiary Butylhydroquinone Originated in India.docx

Ministry of Commerce of the People’s Republic of China
August 21, 2014

Translated by Hou Zuowei

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