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MOFCOM Announcement No. 32 of 2014 on Final Ruling on the Anti-dumping Investigation against Imports of Perchlorethylene Originated in the EU and the U.S.

In accordance with the provisions of the Regulations of the People’s Republic of China on Anti-dumping (hereinafter referred to as the “Anti-dumping Regulations”), on May 31, 2013, the Ministry of Commerce (hereinafter referred to as the "Investigation Authority") issued an official case-filing announcement, deciding to carry out anti-dumping case-filing and investigation against imports of perchlorethylene originated in the EU and the U.S. (hereinafter referred to as the "Product under Investigation"), which is listed under tariff code: 29032300 in the Customs Import and Export Tariff of the People’s Republic of China.

The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic perchlorethylene industry caused by the Product 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 February 17, 2014, an announcement on the preliminary ruling, affirming that there was dumping of imports of perchlorethylene originated in the EU and the U.S. and China's domestic perchlorethylene 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 the provisions of Article 25 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:

I. Final Ruling

Upon investigation, the Investigation Authority made a final ruling that during the investigation period of this case, there was dumping of imports of perchlorethylene originated in the EU and the U.S. and China's domestic perchlorethylene industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

II. Scope of Product under Investigation and Measures

The details of the Product under Investigation and the measures taken are as follows:

Scope of Investigation and measures: imports of perchlorethylene originated in the EU and the U.S.
Name of the Product under Investigation: perchlorethylene or tetrachloroethylene (PCE for short)
Category of chemicals: organic-derivative of hydrocarbon
Chemical Molecular formula: C2Cl4
Chemical structural formula:
Physical and chemical characteristics: perchlorethylene is transparent fluid with smells similar to ether. Its molecular weight is 165.82; melting point is -22.2℃; boiling point is 121.2℃; relative density (water=1) is 1.6226; steam density is 5.83 and steam pressure is 2.11kPa/20℃. It is insoluble in water (soluble in about 10,000 volumes of water), and can be mixed with and soluble in many organic solvents such as ethanol, ether, chloroform and benzene; it can dissolve many substances (such as rubber, resin, fat, alchlor, sulfur, iodine and mercury bichloride). It can be slowly decomposed into trichloroacetic acid and hydrochloric acid in water. It corrodes iron, aluminum and zinc in water (can be inhibited with stabilizers). It is a kind of non-flammable liquid. It is decomposed in high temperature and will be decomposed into different decomposition products in different conditions, which are mainly hydrochloric acid, phosgene and carbon monoxide. Where active carbon exists, it will be decomposed into hexachlorocyclohexanes and hexachloroethane when heated to 700℃. It can be oxidized by strong oxide agents, and chemically reacts drastically with barium powders, beryllium powders, lithium scraps, dinitrogen tetroxide and sodium hydroxide.
Main usage: perchlorethylene is an important organic chorine product that has been widely used. It is mainly used as organic solvent, dry cleaner, desulfurizer, textile finishing agent, metal decontaminant, fats extraction agent, organic synthesis and thermal transfer medium in industry and as anthelmintic in medical treatment and as intermediate for refrigerants HCFC-123, HCFC-124 and HFC-125.

The product is included under the Customs Import and Export Tariff of the People’s Republic of China: 29032300.

III. Levy of Anti-dumping Duties

The Investigation Authority, in accordance with Article 38 of the Anti-dumping Regulations, proposed suggestions on levy of anti-dumping duties against imports of perchlorethylene originated in the EU and the U.S. to the Customs Tariff Commission of the State Council, which then decided, as of May 31, 2014, to impose anti-dumping duties on imports of perchlorethylene originated in the EU and the U.S.

Rates of anti-dumping duties against companies are as follows:
EU companies:
1. Dow Deutschland Anlagengesellschaft mbH 27.6%
2. SOLVAY BENVIC EUROPE-FRANCE S.A.S. 27.6%
3. All Others 27.6%
U.S. companies
1.Occidental Chemical Corporation 71.8%
2.Axiall Corporation 71.8%
3.The Dow Chemical Company 71.8%
4. PPG Industries 71.8%
5. All Others 71.8%

IV. Methods of Levying Anti-dumping Duties

As of May 31, 2014, import operators shall pay relevant anti-dumping duties to the Customs of the People’s Republic of China when importing the Product under Investigation. 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 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 China Customs plus the tariff and anti-dumping duties as the taxable value.

V. Retrospective Collection of Anti-dumping Duties

From February 18, 2014 to May 30, 2014 (inclusive), anti-dumping duties shall be levied on the deposit provided by relevant import operators to PRC Customs pursuant to the announcement on preliminary ruling based on the commodity coverage and anti-dumping duties rate determined by final ruling for such purpose; and import VAT shall also be levied on such deposit based on corresponding VAT rate. During such period, the Customs shall return the part of such deposit exceeding the anti-dumping duties and the part of additional import VAT, without further levy for those that have not been sufficiently levied.

Anti-dumping duties shall not be retroactively levied on perchlorethylene that is originally manufactured in the EU and the U.S. and imported before the date of the Announcement.

VI. Period of Levying Anti-dumping Duties

The period of levying anti-dumping duties on imports of perchlorethylene originated in the EU and the U.S. shall be 5 years starting from May 31, 2014.

VII. New Exporter Review

Any new exporter in the EU and the U.S. that does not export the Product under Investigation to the People’s Republic of China during the investigation period, if qualified, may apply in writing to the Investigation Authority for a new exporter review according to the provisions of Article 47 of the Anti-dumping Regulations.

VIII. Interim Review

During the period of levying anti-dumping duties, relevant interested parties may apply in writing to the Investigation Authority for an interim review in light of the provisions of Article 49 of the Anti-dumping Regulations.

IX. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the final ruling of this case, or the decision to levy anti-dumping duties may, according to the provisions of Article 53 of the Anti-dumping Regulations, apply for an administrative reconsideration or initiate litigation to the people's court according to the law.

X This Announcement shall come into force as of May 31, 2014.

Ministry of Commerce of the People’s Republic of China
May 30, 2014

Translated by Hou Zuowei

 

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