MOFCOM Announcement No. 42, 2012 for AD Ruling on Ethylene & Diethylene Glycol Monobutyl Ethers from U.S. & EU

Issued by: the Ministry of Commerce of the P. R. China (MOFCOM)
Issue No.: Announcement No. 42 of 2012
Issue Date: July 27, 2012

According to China's Antidumping Regulations, the MOFCOM announced on November 18, 2011 starting an antidumping (AD) investigation into Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether originating in the U.S. and the EU (hereinafter referred to as the "investigated products") under China Customs HS Code 29094300.

Based on its investigation results and China's Antidumping Regulations, the MOFCOM hereby makes its preliminary antidumping ruling (see the Annex) including relevant matters as follows:

Ⅰ Preliminary Ruling

The MOFCOM holds that, within the dumping investigation period, the investigated products were engaged in dumping to China and consequently inflicted material injury on China's industries of Ethylene Glycol and Diethylene Glycol Monobutyl Ethers.

Ⅱ Cash Deposit

The MOFCOM has decided to conduct a provisional antidumping measure by levying cash deposit.

From July 28, 2012, the importers of the investigated products shall, upon their import declaration to China Customs, offer cash deposit in proportion to their dumping margins prescribed in this preliminary ruling.

The products subject to the cash deposit are covered by Chinese HS Code 29094300 with the following description:

(1) Investigated Scope: Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether originating in the U.S. and the EU;

(2) Product Name: Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether;

(3) Molecular Formulas: Ethylene Glycol Monobutyl Ether - C6H14O2; Diethylene Glycol Monobutyl Ether - C8H18O3

(4) Chemical Structural Formulas:

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

(5) Physical-Chemical Characteristics:

Ethylene Glycol Monobutyl Ether: colorless and transparent liquid, with slight fragrance and low toxicity; burnable in contact with fire, high heat and strong oxidant; soluble in water, ethanol, acetone, benzene and other organic solvents; capable of dissolving grease, natural resin, nitrocellulose, etc.

Diethylene Glycol Monobutyl Ether: colorless and transparent liquid, with slight fragrance and low toxicity; burnable in contact with fire, high heat and strong oxidant; soluble in water, ethanol, acetone, benzene and other organic solvents; capable of dissolving grease, natural resin, nitrocellulose, etc.

(6) Main Usage:

Both of the Monobutyl Ethers are solvents used in water-based paints as well as dissolvents of nitrocellulose, alkyd resin and phenolic resin modified by maleic anhydride; usually used as coatings, especially the nitrocellulose spraying paint, for anti-fog, anti-wrinkle, glossiness and fluidity of coating film; also used as metal cleaning agent, paint remover, lubricant remover, engine detergent, dry cleaning solvent, epoxy resin dissolvent, drug extractant, pesticide dispersing agent, oil dispersing and dissolving agent, emulsion paint stabilizer, paint evaporation inhibitor, and enamel surfacing improver.

(7) Cash Deposit Rates on Companies:

U.S. Companies:

1. Eastman Chemical Company - 10.1%;

2. The Dow Chemical Company - 12.5%;

3. Equistar Chemicals, LP - 11.5%;

4. All others - 15.1%

EU Companies:

1. Sasol Germany GmbH, Sasol Solvents Germany GmbH - 13.0%;

2. INEOS Chemicals Lavera SAS - 9.3%;

3. BASF SE - 18.8%;

4. All others - 14.9%

Ⅲ Deposit Levy Method

From July 28, 2012, the importers of the investigated products shall, upon their import declaration to China Customs, offer cash deposit in proportion to their dumping margins prescribed in this preliminary ruling;

The cash deposit shall be calculated ad valorem with the customs-set duty-paid value in the formula: deposit amount = (customs' duty-paid value × deposit levy rate) × (1 + import value-added tax rate).

Ⅳ Remarks

The interested parties may, within twenty days from the issue date herein, submit to the MOFCOM their written remarks attached with relevant evidences.

Annex: MOFCOM Preliminary Antidumping Ruling on Ethylene Glycol Monobutyl Ether and Diethylene Glycol Monobutyl Ether from the U.S. & the EU (omitted)