MOFCOM Announcement No. 13 of 2013 on Final Ruling on the Anti-dumping Investigation Against Resorcinol

March 24, 2013 - 09:10 BJT (16:10 GMT)   MOFCOM

Issued by: Ministry of Commerce of the People’s Republic of China 
Announcement No. 13, 2013
Date of Issuance: March 22, 2013

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 March 23, 2012, the Ministry of Commerce (hereinafter referred to as the “Investigating Authority”) issued a formal case-filing announcement, deciding to carry out anti-dumping investigation against imports of resorcinol originated in Japan and the U.S. (hereinafter referred to as the "Products under Investigation"), which are listed under H.S. Code: 29072100 in the Customs Import and Export Tariff of the People’s Republic of China. The resorcinol salt under this H.S. Code is not in the scope of products under investigation.

The Investigating Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic industry of resorcinol 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 Investigating Authority released on November 23, 2012 an announcement on the preliminary ruling, preliminarily affirming that there was dumping of imports of resorcinol originated in Japan and the U.S. and China's domestic industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

Upon the preliminary ruling, the Investigating Authority continued its investigation into the existence of dumping and dumping margin, the existence of 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 Investigating Authority has made the final ruling (See the Annex) in accordance with provisions of Article 25 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:

I. Final Ruling

Upon investigation, the Investigating Authority made final ruling that during the investigation period of this case, there was dumping of imports of resorcinol originated in Japan and the U.S. and China's domestic industry of resorcinol was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

II. Levy of Anti-dumping Duties

The Ministry of Commerce, in accordance with the provisions of Article 38 of the Anti-dumping Regulations, proposed suggestions of the levy of anti-dumping duties to the Customs Tariff Commission of the State Council, which then decided, as of March 23, 2013, to impose anti-dumping duties against imports of resorcinol originated in Japan and the U.S.

The products to be imposed on anti-dumping duties are listed under H.S. Code: 29072100 in the Customs Import and Export Tariff of the People’s Republic of China, while the resorcinol salt thereunder is not in the scope of products under investigation. The details of the Products under Investigation are as follows:

Scope of investigation: imports of resorcinol originated in Japan and the U.S. 
Name of the Products under Investigation: M-dihydroxybenzene or Resorcinol 
Molecular formula: C₆H₆O₂
Chemical structural formula:

Physical and chemical characteristics: usually white acicular crystal in appearance; turn red gradually when exposed to air; easily soluble in water, ethanol and diethyl ether; soluble in chloroform and carbon tetrachloride, and insoluble in benzene.

Main usage: as an important intermediate for chemical synthesis and fine chemical material, resorcinol is mainly used for the production of rubber adhesive and ultraviolet absorbent. In addition, it can also be used for producing wood adhesive, fire retardant, and the intermediate of medicine and pesticides.

Rates of anti-dumping duties imposed on companies are as follows:

Japanese companies

1. Sumitomo Chemical Company, Limited 40.5%
2. Mitsui Chemicals, Inc. 40.5%
3. All others 40.5%
 

The U.S. Companies:

1. INDSPEC Chemical Corporation 30.1%
2. All others 30.1%
 

III. Methods of Levying Anti-dumping Duties

As of March 23, 2013, import operators shall, when importing resorcinol originated in Japan and the U.S., pay relevant anti-dumping duties to the Customs of the People’s Republic of China. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by the Customs, and the formula is: Anti-dumping duty = (dutiable value authorized by the Customs x rate of anti-dumping duty). The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by the Customs plus the tariff and anti-dumping duty as the taxable value.

IV. Retrospective Collection of Anti-dumping Duties

Deposits provided by relevant import operators to the Customs of the People’s Republic of China from November 23, 2012 to March 23, 2013 according to the announcement on the preliminary ruling, shall be collected on the basis of the scope of commodities taxable and the rate of anti-dumping duties determined by the final ruling and transferred 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 resorcinol originated in Japan and the U.S. prior to the announcement deciding to implement provisional anti-dumping measures.

V. Period of Levying Anti-dumping Duties

The implementation period of levying anti-dumping duties on imports of resorcinol originated in Japan and U.S. shall be five years starting from March 23, 2013.

VI. New Exporter Review

Any new exporter in Japan and the U.S. that does not export the Products 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.

VII. 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.

VIII. 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.

IX This Announcement shall come into force as of March 23, 2013.

Ministry of Commerce of the People’s Republic of China

March 22, 2013

(Translated by Hou Zuowei)

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