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MOFCOM Announcement No.40 of 2018 on Final Ruling on the Anti-dumping Investigation against Imports of Halogenated Butyl Rubber Originating in the United States, the EU and Singapore

In accordance with the Anti-dumping Regulations of the People's Republic of China (hereinafter referred to as the "Anti-dumping Regulations"), on August 30, 2017, the Ministry of Commerce (hereinafter referred to as the "Investigation Authority") issued Announcement No.45 of 2017, deciding to carry out anti-dumping investigation against imports of halogenated butyl rubber (hereinafter referred to as the "Products under Investigation") originating in the United States, the EU and Singapore.

The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China's domestic industry of halogenated butyl rubber 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 Investigation Authority released on April 19, 2018, an announcement on the preliminary ruling, preliminarily affirming that there was dumping of halogenated butyl rubber originating in the United States, the EU and Singapore and the domestic halogenated butyl rubber industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

Upon the preliminary ruling, the Investigation Authority continued its investigation into the dumping and dumping margin, the 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 Investigation Authority has made the final ruling (See the Annex) according to Article 25 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:

I. Final ruling

The Investigation Authority ruled that there was dumping of halogenated butyl rubber originating in the United States, the EU and Singapore and the domestic industry of halogenated butyl rubber was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

II. Levy of anti-dumping duties

The Investigation Authority, in accordance with Article 38 of the Anti-dumping Regulations, proposed suggestions on the levy of anti-dumping duties to the Customs Tariff Commission of the State Council, which then decided, as of August 20, 2018, to impose anti-dumping duties on imports of halogenated butyl rubber originating in the United States, the EU and Singapore.

Details of the Products under Investigation are as follows:

Scope of investigation: imports of halogenated butyl rubber originating in the United States, the EU and Singapore.

The Product under Investigation is 卤化丁基橡胶 or 卤代丁基橡胶 mentioned in the Customs Import and Export Tariff of the People’s Republic of China.

English names: Halogenated Butyl Rubber (Chlorobutyl Rubber, Bromobutyl Rubber)

Molecular structure:

X is Br or Cl

Physical and chemical characteristics: Halogenated butyl rubber is a product of the reaction of butyl rubber with a halogenating agent and is an improved product of ordinary butyl rubber. Halogenation reactions include chlorination and bromination. Therefore, halogenated butyl rubber can be classified into chlorinated butyl rubber and brominated butyl rubber. Halogenated butyl rubber products are in the form of white to light amber plastic blocks. Halogenated butyl rubber has the characteristics of fast vulcanization, good compatibility with other unsaturated rubbers, high self-adhesion and high mutual viscosity.

Main purposes: Halogenated butyl rubber is mainly used for tubeless inner liners, heat-resistant inner tubes, heat-resistant hoses and conveyor belts, medical stoppers, shock pads, adhesives, and sealing materials.

The product is listed under tariff numbers of 40023910 and 40023990 in the Customs Import and Export Tariff of the People's Republic of China.

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

Companies of the United States:
1. Exxon Mobil Corporation 75.5%
2. All others 75.5%

EU companies:
1. ExxonMobil Chemical Limited 71.9%
2. ARLANXEO Belgium NV 27.4%
3. All Others 71.9%

Companies of Singapore:
1. ARLANXEO SINGAPORE PTE. LTD. 23.1%
2. All others 45.2%

III. Methods of levying anti-dumping duties

As of August 20, 2018, import operators shall pay relevant anti-dumping duties to the Customs of the People's Republic of China when importing halogenated butyl rubber originating the United States, the EU and Singapore. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: anti-dumping duties = dutiable value authorized by China Customs * rate of anti-dumping duties. The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and anti-dumping duties as the taxable value.

IV. Retrospective collection of anti-dumping duties

Deposits provided by relevant importers to the Customs of the People’s Republic of China from April 20, 2018 to August 19, 2018 according to the announcement on the preliminary ruling, shall be transferred on the basis of detailed description of commodities taxable and the rate of anti-dumping duties determined by the final ruling to anti-dumping duties, and the import value-added tax shall also be levied at 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 halogenated butyl rubber originating in the United States, the EU and Singapore that were imported before the implementation of the temporary anti-dumping measures.

V. Period of levying anti-dumping duties

Imports of halogenated butyl rubber originating in the United States, the EU and Singapore will be subject to anti-dumping duties for five years as of August 20, 2018.

VI. New exporter review

Any new exporter in the United States, the EU and Singapore 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 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 Investigation Authority for review in light of Article 49 of the Anti-dumping Regulations.

VIII. Administrative reconsideration and administrative litigation

Any person who refuses to accept the final ruling and the decision on collection of anti-dumping duties may, according to Article 53 of the Anti-dumping Regulations of the People's Republic of China, apply for an administrative reconsideration or initiate litigation to the people's court according to the law.

IX. MOFCOM Announcement No.40 of 2018 on Final Ruling on the
Anti-dumping Investigation against Imports of Halogenated Butyl Rubber Originating in the United States, the EU and Singapore takes effect as of August 20, 2018.


Ministry of Commerce of the People's Republic of China
August 10, 2018

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