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MOFCOM Announcement No. 5 of 2013 on Final Ruling of the Anti-dumping Investigation against Imports of Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether Originated in the U.S. and the EU

Issued by: Ministry of Commerce of the People’s Republic of China
Announcement No. 5, 2013
Date of Issuance: January 25, 2013

In accordance with provisions of the Regulations of the People’s Republic of China on Anti-dumping (hereinafter referred to as the "Anti-dumping Regulations"), the Ministry of Commerce (hereinafter referred to as the "Investigating Authority"), released on November 18, 2011 a formal announcement on its decision to launch an anti-dumping investigation into imports of Ethylene Glycol Monobutyl ether and Diethylene Glycol Monobutyl Ether originated in the U.S. and the EU (hereinafter referred to as the "Products under Investigation"). The Products under Investigation are listed under H.S. code 29094300 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 Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether 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 Investigating Authority released on July 27, 2012 an announcement on the preliminary ruling, affirming that there was dumping of the Products 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 Anti-dumping Regulations. 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 Products under Investigation and China's domestic industry was 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 Article 38 of the Anti-dumping Regulations, proposed suggestions of the levy of anti-dumping duties to the Customs Tariff Commission of the State Council which then decided, as of January 28, 2013, to impose anti-dumping duties against imports of Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether originated in the U.S. and the EU.

The H.S. code for the Products under Investigation subject to anti-dumping duties in this case is 29094300 under the Customs Import and Export Tariff of the People's Republic of China. Detailed descriptions are as follows:
Scope of investigation: imports of Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether originated in the U.S. and the EU.

Name of Products under Investigation: Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether.
Molecular formula: Ethylene Glycol Monobutyl Ether: C6H14O2
Diethylene Glycol Monobutyl Ether: C8H18O3

Chemical structural formula:
Ethylene Glycol Monobutyl Ether:
CH3-CH2-CH2-CH2-O-CH2-CH2-OH

Diethylene Glycol Monobutyl Ether:
CH3-CH2-CH2-CH2-O-CH2-CH2-O-CH2-CH2-OH


Physical and chemical characteristics:
Ethylene Glycol Monobutyl Ether: colorless transparent liquid with slight fragrance ; runs the risk of combustion in contact with open flame, high heat and oxidant; soluble in organic solvents such as water, ethanol, acetone and benzene; has low toxicity; can dissolve oil, natural resin, NC Nitroncellulose, etc.
Diethylene Glycol Monobutyl Ether:colorless transparent liquid with slight fragrance; runs the risk of combustion in contact with open flame, high heat and oxidant; soluble in organic solvents such as water, ethanol, acetone and benzene; has low toxicity; can dissolve oil, natural resin, NC Nitroncellulose, etc.

Main Usage: Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether are solvents widely applied in water-based paints and solvents of nitrocellulose, alkyd resin and maleic anhydride modified phenolic resin. They are usually used as paint, especially Nitrocellulose spraying paint, and are antifogging and anti-wrinkled and can improve the glossiness and flowability of the film. They can also be used as metal cleaning agent, paint remover, lubricating oil remover, auto engine detergent, dry cleaning solvent, epoxy resin solvent, drug extractant, pesticide dispersing agent, oil dispersing mutual solvents of printing ink, cutting oil and fiber oil. They are also used as solvents of nitrocellulose, varnish, printing ink, stamp ink, oil and resin, etc. as well as stabilizing agent of emulsion paint, evaporation suppressor of plane coating, surfacing improver of high temperature baking enamel.

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

The U.S. companies:
1.Eastman Chemical Company 10.6%
2.The Dow Chemical Company 14.1%
3. Equistar Chemicals, LP 10.6%
4. All others 14.1%

The EU companies:
1. Sasol Germany GmbH 10.8%
2. Sasol Solvents Germany GmbH 10.8%
3. INEOS Chemicals Lavera SAS 9.3%
4. BASF SE 18.8%
5. All others 10.8%

III. Methods of Levying Anti-dumping Duties
As of January 28, 2013, importers shall pay relevant anti-dumping duties to China Customs when importing Ethylene Glycol Monobutyl ether and Diethylene Glycol Monobutyl Ether originated in the U.S. and the EU. 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 duties = (dutiable value authorized by the Customs x rate of anti-dumping duties). 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 duties as the taxable value.

IV. Retrospective Collection of Anti-dumping Duties
Deposits provided by relevant importers to China Customs from July 28, 2012 until January 27, 2013 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 Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether originated in the U.S. and the EU that were imported before the announcement of the decision to implement provisional anti-dumping measures.

V. Period of Levying Anti-dumping Duties

The implementation period of levying anti-dumping duties on imports of of Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether originated in the U.S. and the EU shall be five years starting from January 28, 2013.

VI. New Exporter Review

Any new exporter in the U.S. and the EU 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 provisions of 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 Investigating Authority for an interim review in light of provisions of Article 49 of the Anti-dumping Regulations.

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 Anti-dumping Regulations, 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 January 28, 2013.

Ministry of Commerce of the People’s Republic of China
January 25, 2013



(Translated by: Hou Zouwei)

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