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MOFCOM Announcement No.70 of 2017 on the Preliminary Ruling on the Anti-dumping Investigation against Imports of Methyl Isobutyl Ketone Originating in the Republic of Korea, Japan and South Africa

2017-12-7 9:18:08

In accordance with the Anti-dumping Regulations of the People's Republic of China (hereinafter referred to as the “Anti-dumping Regulations”), on March 27, 2017, the Ministry of Commerce (hereinafter referred to as the “Investigation Authority”) issued Announcement No.16 of 2017, deciding to carry out anti-dumping investigation against imports of methyl isobutyl ketone (hereinafter referred to as the “Products under Investigation”) originating in the Republic of Korea, Japan and South Africa.

The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to China’s domestic industry of methyl isobutyl ketone caused by the Products under Investigation and the extent of such damage, as well as the causal relationship between the dumping and the damage. The Investigation Authority has made a preliminary ruling (See the Annex) according to the investigation findings and Article 24 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:

I. Preliminary ruling

The Investigation Authority preliminarily ruled that there was dumping of methyl isobutyl ketone originating in the Republic of Korea, Japan and South Africa and the domestic methyl isobutyl ketone industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.

II. Levying of margin

The Investigation Authority decides to carry out interim anti-dumping measures by levying margin according to Article 28 and Article 29 of the Anti-dumping Regulations. As of November 20, 2017, import operators shall pay relevant margin to the Customs of the People’s Republic of China at the rate determined by this ruling for each company when importing the Products under Investigation.

Details of the Products under Investigation are as follows:

Scope of investigation: imports of methyl isobutyl ketone originating in the Republic of Korea, Japan and South Africa.
Name of the Products under Investigation: 甲基异丁基（甲）酮.
Chemical name: Methyl Isobutyl Ketone
English names: Methyl Isobutyl Ketone; 4-Methyl-2-Pentanone
Chemical formula:
Chemical structural formula:
Product description: methyl isobutyl ketone is colorless, transparent and flammable liquid having aural similar to camphor. It is slightly soluble in water, and is miscible with phenol, ether, aldehyde and other organic solvents, animal and vegetable oils and mineral oils.

Main uses: methyl isobutyl ketone is an excellent medium boiling solvent and organic synthesis and has wide uses. In terms of the solvent, it is mainly used in coating, medicine, pesticide, solvent dewaxing solvent, rare metal extracting agent, magnetic tape, ink, epoxy resin, adhesive, atomic absorption spectrometry and other aspects and also can be used for production of advanced automotive paint, ship paint, container paint etc.; with respect to the materials of organic synthesis, methyl isobutyl ketone is raw material of synthetic rubber antioxidant 4020, methyl isobutyl carbinol, polymer initiator, latent curing agent of epoxy resin, special surfactants and others.

The product is listed under tariff number of 29141300 in the Customs Import and Export Tariff of the People’s Republic of China.
 
Rates of margin imposed on companies are as follows:

Companies of the Republic of Korea:
1. KUMHO P&B CHEMICALS, INC.        29.9%
2. All Others 　　　　　　　　      32.3%

Japanese companies:
1. Mitsui Chemicals, Inc. 　        48.4%
2. Mitsubishi Chemical Corporation　51.2%
3. All Others 　　　　　　　　      190.4%

South African companies:
1. Sasol South Africa (Pty) Ltd.　　15.9%
2. All Others 　　　　　　　　      34.1%

III. Methods on levying of margin

As of November 20, 2017, import operators shall pay relevant margin to the Customs of the People’s Republic of China according to the dumping margin determined by this ruling for each company when importing methyl isobutyl ketone originating in the Republic of Korea, Japan and South Africa. The margin is levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: margin = (dutiable value authorized by the Customs * levying rate)* (1+ import value-added tax rate).

IV. Comments

An interested party may submit written comments to the Investigation Authority within 10 days from the promulgation date hereof.

Ministry of Commerce of the People’s Republic of China
November 20, 2017

 

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