U.S. Relations with the People's Republic of China (2005)

Chemical Imports from China, Spain Dumped, Commerce Says

Dumping margins range to over 285 percent in final determination

Washington – Imports from China and Spain of certain chemicals used as sanitizing and bleaching agents were dumped on the U.S. market, the U.S. Department of Commerce has ruled.

For its May 3 final affirmative determination on imports of chlorinated isocyanurates, the department calculated dumping margins ranging from 75.78 percent to 285.63 percent for China, and 24.83 percent for Spain.

Before anti-dumping duties can be imposed, there must be final affirmative determinations from both the Commerce Department that dumping occurred and from the U.S. International Trade Commission (USITC) that the imports injured or threatened U.S. industry.

The USITC final injury determination is expected in June.

In the meantime, U.S. customs agents will collect a cash deposit or bond equal to the dumping margin on any subject imports; in the event of a negative determination, the money would be returned.

Dumping is the import of goods at a price below the home-market or a third-country price or below the cost of production. A dumping margin represents by how much the fair-value price exceeds the dumped price.

The value of U.S. imports of the chemical from the two countries in 2003 amounted to $33.6 million.

The Commerce Department calculated the dumping margins as follows:

• China -- Hebei Jiheng Chemical Company Limited, 75.78 percent; Changzhou Clean Chemical Company Limited, Liaocheng Huaao Chemical Industry Company Limited, Sinochem Hebei Import & Export Corporation, Sinochem Shanghai Import & Export Corporation, 137.69 percent; all others, 285.63 percent.

• Spain – countrywide, 24.83 percent.

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International Trade Administration (ITA)
Office of Public Affairs

FACT SHEET

Final Determinations in the Antidumping Duty Investigations on Imports of
Chlorinated Isocyanurates from the People's Republic of China and Spain

On May 3, the Department of Commerce (the Department) announced its affirmative final determinations in the antidumping duty investigations on imports of chlorinated isocyanurates (chlor isos) from the People's Republic of China (PRC) and Spain. The Department found that producers/exporters from the PRC and Spain have sold chlor isos in the U.S. market at less than fair value with margins ranging from 75.78 to 285.63 percent for imports from the PRC and a margin of 24.83 percent for imports from Spain.

Companies Qualifying for a "Separate Rate": The Department has determined that certain Chinese companies that responded voluntarily to the Department's Section A questionnaire have demonstrated an absence of government control from their export activities and are eligible to receive "separate-rate"status. The Department will apply the weighted-average dumping margin of the mandatory respondents in this investigation (137.69 percent) to these PRC companies for the purpose of the final determination.

Next Steps: The U.S. International Trade Commission (ITC) is scheduled to announce its final injury determination on or about June 16, 2005. If the ITC makes an affirmative determination that imports of chlor isos from the PRC and/or Spain are materially injuring, or threaten to materially injure, the domestic industry in the United States, the Department will issue its antidumping order(s) and instruct U.S. Customs and Border Protection to collect antidumping duties on the subject imports. If the ITC makes a negative injury determination, the investigation(s) will be terminated and no order(s) will be issued.

Petitioners: The petitions requesting the initiation of these investigations were filed on May 14, 2004, by Clearon Corporation (NJ) and Occidental Chemical Corporation (TX).

Product Description: The products covered by these investigations are chlorinated isocyanurates. Chlorinated isocyanurates are derivatives of cyanuric acid, described as chlorinated s-triazine triones. They are available in powder, granular, and tableted forms. These investigations cover all chlorinated isocyanurates regardless of end use. They are used as sanitizing, disinfecting, and bleaching agents. Principal end use applications are in swimming pool sanitizers, machine dishwashing detergents, toilet bowl cleaners, bleaches and scouring powders, and in water treatment applications.

Chlorinated isocyanurates are currently classifiable under subheadings 2933.69.6015, 2933.69.6021, and 2933.69.6050 of the Harmonized Tariff Schedule of the United States ("HTSUS"). The tariff classification 2933.69.6015 covers sodium dichloroisocyanurates (anhydrous and dihydrate forms) and trichloroisocyanuric acid. The tariff classifications 2933.69.6021 and 2933.69.6050 represent basket categories that include chlorinated isocyanurates and other compounds including an unfused triazine ring. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.

Final Dumping Margins:

COUNTRY	PRODUCER/EXPORTER	MARGIN
PRC	Hebei Jiheng Chemical Co., Ltd.	75.78%
	Nanning Chemical Industry Co., Ltd.	285.63%
	Changzhou Clean Chemical Co., Ltd. (Section A)	137.69%
	Liaocheng Huaao Chemical Industry Co., Ltd. (Section A)	137.69%
	Sinochem Hebei Import & Export Corporation (Section A)	137.69%
	Sinochem Shanghai Import & Export Corporation (Section A)	137.69%
	PRC-wide	285.63%
SPAIN	Aragonesas Delsa, S.A.	24.83%
	All Others	24.83%

Case Calendar:

EVENT	DATE
Petitions Filed	May 14, 2004
Initiation Date	June 3, 2004
ITC Preliminary Determinations	June 28, 2004
DOC Preliminary Determinations	December 10, 2004
DOC Final Determinations	May 2, 2005
ITC Final Determinations	June 16, 2005
Signature of Orders*	June 23, 2005

* This will take place only in the event of final affirmative determinations by both the Department and the ITC.

Import Statistics:

		2001	2002	2003
PRC	Volume (kg.)	4,779,431	7,759,737	22,938,199
	Value ($US)	$6,702,465	$8,401,428	$22,816,203
SPAIN	Volume (kg.)	4,719,910	4,852,899	6,999,903
	Value ($US)	$8,728,990	$8,346,076	$10,710,417

Source: ITC Dataweb. The subject merchandise falls under a "basket" HTSUS subheading that contains various types of merchandise other than chlorinated isocyanurates. Therefore, data for exact import quantities and values of chlorinated isocyanurates are not available.