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MOFCOM Announcement No.57 of 2016 on the Anti-dumping Investigation into Imports of POM Copolymer Originated in the Republic of Korea, Thailand and Malaysia

On September 12, 2016, the Ministry of Commerce of the People's Republic of China (hereinafter referred to as the "MOFCOM") received an application for anti-dumping investigation that was formally submitted by Shanghai BlueStar POM Co., Ltd., Yunnan Yuntianhua Co., Ltd. and Kaifeng Longyu Chemical Industry Co., Ltd. (hereinafter referred to collectively as the "Applicant") on behalf of the domestic POM copolymer industry, in which the Applicant applied for the anti-dumping investigation into imports of POM copolymer originated in the Republic of Korea, Thailand and Malaysia. In accordance with the Anti-dumping Regulations of the People's Republic of China (hereinafter referred to as the “Anti-dumping Regulations”), the MOFCOM reviewed the qualification of the Applicant, the situation relating to the products to be investigated according to the application and the like products in China, influence of the imports of the products to be investigated on the domestic industry, and the situation relating to the applying country.

According to evidence provided by the Applicant and the primary review of the MOFCOM, the outputs of POM copolymer of the Applicant and Yankuang Lunan Chemical Fertilizer Plant in the year 2012, 2013, 2014, 2015 and the first half year of 2016 respectively had accounted for over 50% of the total output of the like products in China during the same period, which conformed to provisions in Article 11, Article 13 and Article 17 of the Anti-dumping Regulations on application for anti-dumping investigation submitted by the relevant domestic industry.

The application form stated that the POM copolymer originated in the Republic of Korea, Thailand and Malaysia was exported to China at a price lower than the normal value. According to the evidence and information acquired in a reasonable way, in the application form, the Applicant alleged that an obvious dumping in the products to be investigated existed after it determined the normal value of POM copolymer originated in the Republic of Korea, Thailand and Malaysia based on the method of costs plus reasonable expenses and profits, and determined the export price of products to be investigated based on the customs' statistic price of those exported to China, and adjusted factors that would affect the price comparability. Meanwhile, the application form stated that the price of products to be investigated in Chinese market had reduced, which restricted the price of domestic like products, made the production operation indicator worse, including sale price, rate of operation, inventories, employment figure and rate of return on investment and substantially damage the domestic industry; furthermore, the form stated that there was a causal relationship between the dumping import of products to be investigated and the substantive damage of the domestic industry. Upon review, the MOFCOM considered that the application form had covered the contents and relevant evidence as required by Article 14 and Article 15 of the Anti-dumping Regulations on anti-dumping investigation.

Based on the above review results and in accordance with Article 16 of the Anti-dumping Regulations, the MOFCOM decided to carry out the anti-dumping investigation into imports of POM copolymer originated in the Republic of Korea, Thailand and Malaysia as of October 24, 2016. Relevant matters are hereby announced as follows:

I. Investigation and Investigation Period

As of the issue date hereof, the MOFCOM carried out the anti-dumping investigation into the imports of POM copolymer originated in the Republic of Korea, Thailand and Malaysia. The period of this dumping investigation commenced on July 1, 2015 and ended on June 30, 2016, and that of the industrial damage investigation commenced on January 1, 2012 and ended on June 30, 2016.

II. Products under Investigation and Investigation Scope

Scope of investigation: Imported POM Copolymer originated in the Republic of Korea, Thailand and Malaysia.
Name of products under investigation (in Chinese): 共聚聚甲醛,又称聚氧亚甲基共聚物,或聚氧化甲烯共聚物
Name of products under investigation (in English): Polyformaldehyde Copolymer, or Polyoxymethylene Copolymer, or Copolymer-type Acetal Resin, or Acetal Copolymer, and they are generally called POM Copolymer for short.
Chemical formula:
Chemical structural formula:
Physicochemical characteristics: POM Copolymer consists of formaldehyde, having the main chain of and the thermoplastic resin of embedded chemical bond of , and it is milky or flaxen granular solid at normal temperature.
Main purposes: POM Copolymer possesses high mechanical strength, fatigue durability and creep resistance and other good comprehensive mechanical property; therefore, it can partially replace copper, zinc, tin, lean and other metal materials, and can be directly used for or used upon the modification for auto parts, electric products, industrial machine, daily necessities, sports equipment, medical appliances, pipe fittings, building materials and other fields.

The product is listed under tariff number of 39071010 in the Customs Import and Export Tariff of the People’s Republic of China. POM-H, modified POM and other products under the tariff number are excluded from the scope of products to be investigated.

III. Registration for Participating in the Investigation

Any interested party may register with the Trade Remedy and Investigation Bureau of MOFCOM for participating in this anti-dumping investigation within 20 days after the date of release hereof. Interested parties who participate in this investigation are required to provide the basic identity information, quantity and amount of products under investigation exported to or imported from China, quantity and amount of like products produced and sold and relationship during the period of dumping investigation and other illustrative materials based on the Reference Format of the Registration to Participate in the Investigation, which can be downloaded from relevant website (the website address is attached, the same below).

For the purpose hereof, the interested party refers to individuals and organizations as stated in Article 19 of the Anti-dumping Regulations.

IV. Access to Public Information

The interested party may download from relevant website or search, read, transcribe and copy, in the MOFCOM Trade Relief Public Information Office (Tel.: 0086-10-65197878), the non-confidential text of the application form submitted by the Applicant involved in this case. In the course of the investigation, the interested party may search the case-related public information via relevant website, or search, read, transcribe and copy the same in the MOFCOM Trade Relief Public Information Office.

V. Comments

If any interested party has any comments on the scope of products under investigation, the qualification of the Applicant, the country under investigation and other relevant issues, it may submit written opinions to the Trade Remedy and Investigation Bureau of MOFCOM within 20 days as of the date of release hereof.

VI. Investigation Methods

In accordance with Article 20 of the Anti-dumping Regulations, the MOFCOM may carry out the investigation via questionnaire, sampling, hearing, site investigation and other manners to get information from relevant interested parties.

In order to get the case-related information, the MOFCOM usually issues questionnaires to overseas exporters or manufacturers, and domestic producers and importers involved in the case within ten working days from the deadline for registration for participating in the investigation as required herein. Also, interested parties who participate in such registration may download the questionnaire from the relevant websites.

Query information specified in the Questionnaire for Foreign Exporters or Manufacturers Involved in the Anti-dumping Case of POM Copolymer includes the company organization and operation, products under investigation, export to China, domestic sales, operating and financial information, costs of production and relevant expenses, estimated dumping margin, and check list. Query information specified in the Questionnaire for Domestic Producers Involved in the Anti-dumping Case of POM Copolymer includes the basic information of the company, situation of domestic like products, operating and financial information, and other issues need to be indicated. Query information specified in the Questionnaire for Domestic Importers Involved in the Anti-dumping Case of POM Copolymer includes the basic information of the company, and trade of and the relevant information on the products under investigation.

Interested parties who have not participated in the registration may directly download relevant questionnaires from the relevant websites or get them from the Trade Remedy and Investigation Bureau of the MOFCOM, and fill in the same as required.

All companies involved in the case are required to submit complete and accurate questionnaires within the time as specified by the MOFCOM. Answers shall cover all information as required by the questionnaires.

VII. Submission and Processing of Confidential Information

If the information submitted by the interested party to the MOFCOM needs to be kept in secret, the interested party may request the MOFCOM to make confidential treatment for relevant information and give reasons. If the MOFCOM agrees on the request, such interested party shall provide non-confidential summary of the confidential information simultaneously. The non-confidential summary should fully cover meaningful information so that other interested parties can reasonably understand the confidential information. Reasons shall be given if the non-confidential summary is not available. If the interested party does not require to keep confidential the information it has submitted, the MOFCOM may deem such information as public information.

VII. Consequences of Non-cooperation

In accordance with Article 21 of the Anti-Dumping Regulations, when the MOFCOM makes an investigation, the interested party shall truthfully reflect the situation and provide relevant information. If any interested party fails to do so or fails to provide necessary information within a reasonable time, or severely impedes such investigation in any other way, the MOFCOM may give a ruling according to facts already obtained and the best information available.

IX. Investigation Period

This investigation commenced on October 24, 2016 and usually ends on October 24, 2017; for special situation, the period may be extended to April 24, 2018.

X. Contact Information

Address: No. 2 Dong Chang’an Avenue, Beijing, China
Zip code: 100731
Trade Remedy and Investigation Bureau of the MOFCOM
Tel: 0086-10-65198180, 65198490
Fax: 0086-10-65198172
Website: Sub website of the Trade Remedy and Investigation Bureau of the MOFCOM (http://trb.mofcom.gov.cn)
China Trade Remedy Information Network (http://www.cacs.mofcom.gov.cn)

Ministry of Commerce of the People’s Republic of China

October 24, 2016

(All information published in this website is authentic in Chinese. English is provided for reference only. )