MOFCOM Announcement No. 16 of 2013 on Final Rulingon the Anti-dumping Investigation against Toluene Diisocyanate

March 14, 2013 - 14:12 BJT (21:12 GMT)   MOFCOM

Issued by: Ministry of Commerce of the People’s Republic of China 
Announcement No. 16, 2013
Date of Issuance: March 12, 2013

In accordance with the provisions of the Regulations of the People’s Republic of China on Anti-dumping, on March 23, 2012, the Ministry of Commerce (hereinafter referred to as the "Investigating Authority") issued Announcement No. 14 of 2012, deciding to carry out anti-dumping case-filling investigation against imports of toluene diisocyanate originated in the EU (TDI 80/20) (hereinafter referred to as the "Product under Investigation"), which is listed under H.S. Code: 29291010 in the Customs Import and Export Tariff of the People’s Republic of China.

The Investigating Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic industry of toluene diisocyanate caused by the Product 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 theRegulations of the People’s Republic of China on Anti-dumping, the Investigating Authority released on November 13, 2012 an announcement on the preliminary ruling, affirming that there was dumping of the Product under Investigation 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) according to the investigation findings and provisions of Article 25 of the Regulations of the People’s Republic of China on Anti-dumping. Relevant matters are hereby announced as follows: 

I. Final Ruling
Upon investigation, the Investigating Authority made the final ruling that during the investigation period of this case, there was dumping of the Product under Investigation and China's domestic industry of toluene diisocyanatewas substantially damaged, and there was causal relationship between the dumping and the substantive damage.

II. Levy of Anti-dumping Duties 
The Investigating Authority, in accordance with the provisions of the Regulations of the People’s Republic of China on Anti-dumping, proposed suggestions of the levy of anti-dumping duties to the Customs Tariff Commission of the State Council, which then decided, as of March 13, 2013, to impose anti-dumping duties against imports of toluene diisocyanate originated in the EU (TDI 80/20).

The details of the Product under Investigation are as follows:

Scope of investigation: imports of toluene diisocyanate originated in the EU (TDI 80/20) 
Name of the product under investigation: Toluene Diisocyanate (“TDI” for short) 
Model and specification: TDI80/20 
Molecular formula: C9H6N2O2 

Physical and chemical characteristics: TDI is a kind of isocyanate under compounds with nitrogenous bases in organic chemistry; it is white or light yellow fluid in normal temperature with pungent smells. It is miscible in acetone and ethers and easily reacts with amino compounds containing active hydrogen atoms, water, alcohol, acid and alkali and decomposes. It easily explodes in fire or heat. 

Main usage: TDI is the main raw material used to produce polyurethane products such as flexible foams, elastomer, coating and adhesives. It can also be used for surface processing for the vinyl polymer thin films and natural rubbers, additives for the resistance to chemical reagents of coatings and textile processing and is widely used in petroleum, chemical industry, mining, metallurgy and automobile industry as well as railway transportation. 

The product is listed under H.S. Code: 29291010 in the Customs Import and Export Tariff of the People’s Republic of China and is limited to TDI 80/20 under the same. 
Rates of anti-dumping duties imposed on companies are as follows: 
Bayer Material Science AG: 19.2%
BorsodchemZrt.: 6.6%
ZakladyChemiczne ZACHEM S.A.:37.7%
Perstorp France: 37.7%
Dow Chemical Tarragona: 37.7%
All others: 37.7%

III. Methods of Levying Anti-dumping Duties 
As of March 13, 2013, import operators shall, when importing toluene diisocyanate (TDI 80/20) originated in the EU, 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 13, 2012 until the date of this Announcement 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 toluene diisocyanate (TDI 80/20) originated in the EU 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 toluene diisocyanate (TDI 80/20) originated in the EU shall be five years starting from March 13, 2013.

VI. New Exporter Review 
Any new exporter in the EU 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 Regulations of the People’s Republic of China on Anti-dumping.

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 Regulations of the People’s Republic of China on Anti-dumping.

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 Regulations of the People’s Republic of China on Anti-dumping, 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 13, 2013.

 

Ministry of Commerce of the People’s Republic of China
March 12, 2013

Translated by Hou Zuowei
 

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