In accordance with the Anti-dumping Regulations of the People’s Republic of China (hereinafter referred to as the “Anti-dumping Regulations”), on April 20, 2016, the Ministry of Commerce (hereinafter referred to as the “Investigation Authority”) issued the Announcement No.17 of 2016, deciding to carry out anti-dumping investigation against imports of vinylidene chloride - vinyl chloride copolymer resin (hereinafter referred to as the “Products under Investigation”) originated in Japan.

The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic industry of vinylidene chloride - vinyl chloride copolymer resin 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 made a preliminary ruling (See Appendix). The relevant matters are hereby announced as follows:

I. Preliminary Ruling

The Investigation Authority preliminarily affirmed that there was dumping on import of vinylidene chloride - vinyl chloride copolymer resin originated in Japan, and the same domestic industry in China was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

II. Levy of Margin

The Investigation Authority, in accordance with Article 28 and Article 29 of the Anti-dumping Regulations, decided to implement temporary anti-dumping measures in the form of margin. Since January 20, 2017, the importers shall provide the corresponding margin to the Customs of the People's Republic of China based on the margin ratio for each company determined by the preliminary ruling when importing the Products under Investigation.

Details of the Products under Investigation are as follows:

Scope of investigation: imports of vinylidene chloride - vinyl chloride copolymer resin originated in Japan.
Name of the Products under Investigation: vinylidene chloride - vinyl chloride copolymer resin, also known as VDC-VC copolymer resin or ploy vinylidene chloride resin.
English Name: vinylidene chloride - vinyl chloride copolymer resin
Chemical molecular formula: - [-CH2CCl2-] m-[-CH2CHCl-] n
Physical and chemical properties: vinylidene chloride - vinyl chloride copolymer resin is vinylidene chloride polymer made by taking the monomer with maximum mass fraction- vinylidene chloride and the second monomer chloroethylene as the main raw materials through copolymerization reaction, no matter whether the stabilizer and lubricant and other additives are added. The product is usually granular or powdered, insoluble in gasoline, alcohol, vinyl chloride and most organic solvents, soluble in tetrahydrofuran, cyclohexanone, cyclopentanone, chlorobenzene, dichlorobenzene and other special solvents and can have saponification reaction with alkali, with good electrical insulation and barrier property to oxygen and water.

Main use: vinylidene chloride - vinyl chloride copolymer resin can be used in the production of casing film, fresh-keeping film, heat shrinkable film, composite film and other monolayer or multilayer films as well as fresh-keeping bags, composite bags, blowing bottles and other products.

The tariff line of the product is 39045000 under the Customs Import and Export Tariff of the People's Republic of China. The vinylidene chloride-methyl acrylate copolymer resin, vinylidene chloride- acrylonitrile copolymer resin, PVDC emulsion and other products under the tariff line are not within the scope of the Products under Investigation.

The margin ratio levied for each company is made as follows:
1. KUREHA CORPORATION 47.1%
2. ASAHI KASEI CHEMICALS CORP 47.1%
3. All Others 47.1%

III. Methods of Levying Margin

Since January 20, 2017, the importers shall provide the corresponding margin to the Customs of the People's Republic of China based on the dumping margin for each company determined by the preliminary ruling when importing the vinylidene chloride - vinyl chloride copolymer resin originated in Japan. The margin shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the calculation formula is: margin = (dutiable value authorized by China Customs × margin ratio) × (1+import value-added tax rate).

IV. Comments

Each stakeholder may, within 10 days as of the date of promulgation of the Announcement, submit written comments to the Investigation Authority.

Ministry of Commerce

January 19, 2017