Some market participants recently paid attention to the announcement of a one-point anti-dumping tax issued by the Ministry of Commerce. The text of this announcement is as follows:
Announcement of the Ministry of Commerce on Adjusting the Anti-dumping Duty Rate of Partial Imports of Monobutyl Ethers of Ethylene Glycol and Diethylene Glycol
[Publisher] People's Republic of China Ministry of Commerce
[Published] No. 32 of 2018
【release date】 April 4, 2018
On January 25, 2013, the Ministry of Commerce (hereinafter referred to as the investigation agency) issued the No. 5 Announcement of 2013 to impose anti-dumping duties on imported ethylene glycol and diethylene glycol monobutyl ether originating in the United States and the European Union. It will be 5 years from January 28th.
On February 8, 2017, Jiangsu Dana Chemical Co., Ltd. (hereinafter referred to as the domestic industry applicant) represented the monobutyl ether industry of ethylene glycol and diethylene glycol in China to apply to the investigation authority, claiming that the United States and the European Union’s Ineos after the final arbitration. The chemical dumping of ethylene glycol and diethylene glycol monobutyl ether exported to China by Chemical Lavala Co., Ltd. has increased, exceeding the anti-dumping tax rate set by the final ruling, and requires the production of limited raw materials in the United States and the European Union Ineo Chemicals Lavala Limited. The anti-dumping measures applicable to the company's imports of ethylene glycol and diethylene glycol monobutyl ether were subjected to an interim review of dumping and dumping margins.
In accordance with the relevant provisions of Article 49 of the "Anti-dumping Regulations of the People's Republic of China" and the "Interim Rules for the Review of Dumping and Sales Duration," the investigation authority has examined the status of the applicant's eligibility, the export price of the product under investigation, and the normal value. . The investigation authority considered that the application complied with the conditions for the review and filing of the case set out in the “Anti-dumping Regulations of the People's Republic of China” and the “Provisional Rules for the Mid-term Review”.
On April 12, 2017, the investigation agency issued an announcement and decided to dump and dump anti-dumping measures applicable to imports of ethylene glycol and diethylene glycol monobutyl ether originating from the United States and the European Union Ineos Chemical Lawarra Co., Ltd. Mid-term review. The scope of the review investigation is the normal value, export price and dumping margin of imported ethylene glycol and diethylene glycol monobutyl ether originating from the United States and the European Union Ineo Chemicals Lavala. The product under investigation for the review investigation was the same as the product under investigation for the original anti-dumping measures, namely monobutyl ether of ethylene glycol and diethylene glycol. The product is classified in "Import and Export Tariff of the People's Republic of China": 29094300.
According to the results of the mid-term review of the anti-dumping investigation, the Ministry of Commerce proposed to the Customs Tariff Commission of the State Council the implementation of anti-dumping measures. According to Article 50 of the "Regulations of the People's Republic of China on Anti-dumping Regulations" and the decision of the Customs Tariff Commission of the State Council, the relevant matters are hereby announced as follows:
First, the review ruling
After investigation, the Ministry of Commerce ruled that there was dumping of the product under investigation during the review period of this review.
Second, anti-dumping measures
According to the “Regulations of the People’s Republic of China on Anti-dumping Regulations”, the Customs Tariff Commission of the State Council has decided that, starting from April 12, 2018, the monobutyl ethers of imported ethylene glycol and diethylene glycol originating in the United States and the European Union shall be levied at the following rates: Anti-dumping duties:
1. Yikestar Chemical Products Co., Ltd.
(EquistarChemicals, LP) 37.5%
2. Eastman Chemical Company
(Eastman Chemical Company) 46.9%
3. Dow Chemical Company
(The Dow Chemical Company) 75.5%
4. Other U.S. companies
(All others) 75.5%
1. Ingredi Chemical Lavala Co., Ltd.
(INEOS Chemicals Lavera SAS) 43.5%
2. Sasol Germany Limited Liability Company
(Sasol Germany GmbH) 10.8%
3. Sasol Solvent Germany GmbH
(Sasol Solvents Germany GmbH) 10.8%
4. BASF Europe
(BASF SE) 18.8%
5. Other EU companies
(All others) 43.5%
Third, the method of imposing anti-dumping duties
Since April 12, 2018, when importers import products under investigation, they should pay the corresponding anti-dumping duties to the customs of the People's Republic of China. The anti-dumping duty shall be calculated on the basis of the ad valored duty-paid price, calculated according to the formula: anti-dumping duty = customs duty-paid price × anti-dumping tax rate. The value-added tax of the import link shall be calculated from the duty-paid price approved by the customs together with the duties and anti-dumping duties as the taxable price.
IV. Administrative Reconsideration and Administrative Litigation
According to the provisions of Article 53 of the Anti-dumping Regulations of the People's Republic of China, in case of dissatisfaction with the decision of this review, it may apply for administrative reconsideration according to law, and may also sue the people's court according to law.
V. This announcement is implemented from April 12, 2018
The products under investigation that clearly indicate the anti-dumping measures in the announcement are ethylene glycol and monobutyl ether of diethylene glycol. The product is classified in "Import and Export Tariff of the People's Republic of China": 29094300. The tariff number for ethylene glycol is 29053100. There is multiple positive support for this wave of ethylene glycol market rally, which is closely related to this news.
Recently, the distribution of goods in east China's ports is relatively concentrated. Holders are reluctant to sell at low prices, and the market price is revised downwards. In the second quarter, the supply and demand side of ethylene glycol is expected to support the market mentality in the maintenance of ethylene glycol and the expected peak downstream season. The cash flow in the venue has been tightened, and the port inventory has been greatly affected by the closure. The market is still well supported. Follow-up will focus on the impact of external environmental turbulence under the Sino-US trade war.
Here, the popularity of ethylene glycol monobutyl ether as a colorless, flammable liquid has a moderate ether taste and low toxicity. Soluble in water and alcohol, with a high dilution of petroleum hydrocarbons, derived from the action of ethylene oxide and n-butanol.