In accordance with the Anti-dumping Regulations of the People's Republic of China (hereinafter referred to as the "Anti-dumping Regulations"), on March 26, 2018, the Ministry of Commerce (hereinafter referred to as the "Investigation Authority") issued an announcement to carry out anti-dumping investigation against imports of phenol (hereinafter referred to as the "Product under Investigation") originating in the United States, the EU, South Korea, Japan and Thailand.
The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic industry of phenol caused by the Product under Investigation and the extent of such damage, as well as the causal relationship between the dumping and the damage. The Investigation Authority has made a preliminary ruling as follows according to the investigation findings and the Anti-dumping Regulations:
I. Preliminary Ruling
The Investigation Authority preliminarily ruled that there was dumping of phenol originating in the United States, the EU, South Korea, Japan and Thailand and the domestic phenol industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.
The Investigation Authority decides to carry out interim anti-dumping measures by levying deposit according to Article 28 and Article 29 of the Anti-dumping Regulations. As of May 27, 2019, import operators shall pay relevant deposit to the Customs of the People’s Republic of China at the rate determined by this ruling for each company when importing the Product under Investigation.
Details of the Product under Investigation are as follows:
Scope of investigation: imports of phenol originating in the United States, the EU, the South Korea, Japan and Thailand.
Name of the Product under Investigation: 苯酚
Name in English: Phenol
Chemical structural formula:
Description: Phenol is usually colorless needle-like or white bulk crystals at room temperature, soluble in alcohol, ether, chloroform, glycerol, carbon disulfide, slightly soluble in water at room temperature and almost insoluble in petroleum ether. It is strongly corrosive and flammable.
Main purposes: Phenol, as an important organic chemical material, is mainly used for the preparation of phenolic resin, bisphenol A, caprolactam, alkyl phenols, salicylic acid and other industrial raw materials. It can also be used as a solvent, reagent, and disinfectant, and widely used in synthetic fibers, plastics, medicine, pesticides, perfumes, dyes, coatings, and oil refining industry as well as other fields.
The product is listed under tariff number of 29071110 in the Customs Import and Export Tariff of the People’s Republic of China.
Rates of deposit imposed on companies are as follows:
Companies of the United States
1. INEOS Americas LLC 129.6%
2. Blue Cube Operations LLC 125.4%
3. All Others 129.6%
1. INEOS Phenol GmbH 82.0%
2. INEOS Phenol Belgium NV 82.0%
3. All Others 82.0%
Companies of the South Korea
1. KUMHO P&B CHEMICALS, INC. 13.9%
2. LG CHEM, LTD. 13.3%
3. All Others 23.7%
1. Mitsui Chemicals, Inc. 81.2%
2. All Others 81.2%
Companies of Thailand:
1. PTT Phenol Company Limited 11.9%
2. All Others 28.6%
III. Methods to Levy Deposit
As of May 27, 2019, import operators shall pay relevant deposit to the Customs of the People’s Republic of China according to the dumping margin determined by this ruling for each company when importing phenol originating in the United States, the EU, South Korea, Japan and Thailand. The deposit is levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: deposit= (dutiable value authorized by the Customs * levying rate)* (1 + import value-added tax rate).
An interested party may submit written comments to the Investigation Authority within 10 days from the promulgation date hereof.
Ministry of Commerce of the People's Republic of China
May 27, 2019