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MOFCOM Announcement No.57 of 2017 on the Preliminary Ruling of Countervailing Investigation against Imports of Ortho Chloro Para Nitro Aniline Originated in India

2017-10-26 9:19:16

In accordance with the Countervailing Regulations of the People's Republic of China (the "Countervailing Regulations"), on February 13, 2017, the Ministry of Commerce (the "Investigation Authority") issued Announcement No.5 of 2017, deciding to initiate countervailing investigations against imports of ortho chloro para nitro aniline (hereinafter referred to as the “Products under Investigation”) originated in India.

The Investigation Authority carried out investigations into the existence of subsidy and the amount of subsidy and the injuries to the domestic industry of ortho chloro para nitro aniline in China by the Products under Investigation, the extent thereof and the causality between the subsidy and injury. According to findings of the investigations and Article 25 of the Countervailing Regulations, the Investigation Authority made its preliminary ruling (See Appendix). Relevant matters are hereby announced as follows:

I. Preliminary Ruling

It is preliminarily ruled by the Investigation Authority that, the imports of ortho chloro para nitro aniline originated in India were involved in the subsidy; the domestic industry of ortho chloro para nitro aniline was materially injured, and there was causality between the subsidy and the material injury.

II. Products under Investigation and the Scope of Investigation

Investigation Scope: imports of ortho chloro para nitro aniline originated in India.
Name of the Products under Investigation: 邻氯对硝基苯胺.
English name: Ortho Chloro Para Nitro Aniline.
Molecular structure:
C6H5CIN2O2
Chemical structural formula:
Descriptions of the product: yellow crystalline powder, stable under normal temperature and pressure, soluble in ethyl alcohol, diethyl ether and benzene, slightly soluble in water and strong acid and insoluble in naphtha.
Main purposes: used to synthesize disperse dyes, organic pigments and the intermediate of corrosion inhibitor and produce niclosamide, a specific medicine preventing and treating schistosomiasis, or used as medical intermediate.

The said product is included into tariff code: 29214200 in the Customs Import and Export Tariff of the People’s Republic of China. Other products under this tariff code are not included in the scope of the investigation applied for this time.

III. Temporary Countervailing Measures

In accordance with Articles 29 and 30 of the Countervailing Regulations, the Ministry of Commerce offered suggestion on taking temporary countervailing measures against imports of ortho chloro para nitro aniline originated in India to the Customs Tariff Commission under the State Council (the "CTC"). The CTC decided, according to the suggestion of the Ministry of Commerce, to take temporary countervailing measures in the form of the deposit of temporary countervailing duties against the imports of ortho chloro para nitro aniline originated in India as of the date hereof. Importer operators, when importing the Products under Investigation, shall offer corresponding deposits of temporary countervailing duties to the Customs of the People’s Republic of China at the subsidy rate of ad valorem for each company as determined in the preliminary ruling.

The subsidy rates for each company as determined in this preliminary ruling are as follows:

Aarti Industries Limited 20.4%
All others 166.0%

IV. Methods of Collection of Deposits of Temporary Countervailing Duties

As of October 20, 2017, import operators shall, when importing ortho chloro para nitro aniline originated in India, offer corresponding deposits of temporary countervailing duties to the Customs of the People’s Republic of China at the subsidy rate of ad valorem for each company as determined in the preliminary ruling. The deposit shall be levied by means of ad valorem on the basis of dutiable value authorized by the Customs, and the calculation formula is: deposit = dutiable value X the rate of the deposit; the deposit of import VAT shall be levied by means of ad valorem on the basis of dutiable value authorized by the Customs plus the customs duties and the deposit of temporary countervailing duties.

V. Comments

Any interested party may, within 10 days as of the date of the Announcement, submit written comments to the Investigation Authority.

Ministry of Commerce
October 20, 2017

 

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