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MOFCOM Announcement No.27 of 2018 on the Final Ruling on the Anti-dumping Investigation against Imports of Methyl Isobutyl Ketone Originating in the Republic of Korea, Japan and South Africa

2018-3-26 9:56:17

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. According to the investigation findings and Article 24 of the Anti-dumping Regulations, the Investigation Authority released on November 20, 2017, an announcement on the preliminary ruling, preliminarily affirming 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.

Upon the preliminary ruling, the Investigation Authority continued its investigation into the dumping and dumping margin, the damage and the extent of such damage, as well as the causal relationship between the dumping and the damage. The investigation now comes to an end. The Investigation Authority has made the final ruling (See the Annex) according to Article 25 of the Anti-dumping Regulations. Relevant matters are hereby announced as follows:

I. Final ruling

The Investigation Authority finally 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. Levy of anti-dumping duties

The Investigation Authority, in accordance with Article 38 of the Anti-dumping Regulations, proposed suggestions on the levy of anti-dumping duties to the Customs Tariff Commission of the State Council, which then decided, as of March 20, 2018, to impose anti-dumping duties on imports of methyl isobutyl ketone originating in the Republic of Korea, Japan and South Africa.

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 anti-dumping duty imposed on companies are as follows:

Companies of the Republic of Korea:

1. KUMHO P&B CHEMICALS, INC.　　　　　　　　　　　　　　　　18.5%
2. All others　　　　　　　　　　　　　　　　　　32.3%

Japanese companies:
1. Mitsui Chemicals, Inc.　　　　　　　　　　　　　　　　45.0%
2. Mitsubishi Chemical Corporation　　　　　　　　　　　　　　　　47.8%
3. All others　　　　　　　　　　　　　　　　　　　　　　　190.4%

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

III. Methods of levying anti-dumping duties

As of March 20, 2018, import operators shall pay relevant anti-dumping duties to the Customs of the People’s Republic of China when importing methyl isobutyl ketone originating in the Republic of Korea, Japan and South Africa. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: anti-dumping duties = dutiable value authorized by China Customs * rate of anti-dumping duties. The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and anti-dumping duties as the taxable value.

IV. Retrospective collection of anti-dumping duties

Deposits provided by relevant importers to the Customs of the People’s Republic of China from November 20, 2017 to March 19, 2018 according to the announcement on the preliminary ruling, shall be transferred on the basis of detailed description of commodities taxable and the rate of anti-dumping duties determined by the final ruling to anti-dumping duties, and the import value-added tax shall also be levied at relevant rate of value-added tax. Any excess of the deposits provided by importers during this period over the anti-dumping duties and the corresponding import value-added tax will be refunded by the Customs, and the short-levied duties will not be levied.

Retrospective collection of anti-dumping duties will not be carried out for methyl isobutyl ketone originating in the Republic of Korea, Japan and South Africa that were imported before the implementation of the temporary anti-dumping measures.

V. Period of levying anti-dumping duties
Imports of methyl isobutyl ketone originating in the Republic of Korea, Japan and South Africa will be subject to anti-dumping duties for five years as of March 20, 2018.

VI. New exporter review

Any new exporter in the Republic of Korea, Japan and South Africa that does not export the Products under Investigation to the People’s Republic of China during the investigation period, if qualified, may apply in writing to the Investigating Authority for a new exporter review according to Article 47 of the Anti-dumping Regulations.

VII. Interim review

During the period of levying anti-dumping duties, relevant interested parties may apply in writing to the Investigation Authority for a mid-term review in light of Article 49 of the Anti-dumping Regulations.

VIII. Administrative reconsideration and administrative litigation

Any person who refuses to accept the final ruling and the decision on collection of anti-dumping duties may, according to Article 53 of the Anti-dumping Regulations of the People's Republic of China, apply for an administrative reconsideration or initiate litigation to the people's court according to the law.

IX. MOFCOM Announcement No.27 of 2018 on the Final Ruling on the Anti-dumping Investigation against Imports of Methyl Isobutyl Ketone Originating in the Republic of Korea, Japan and South Africa takes effect as of March 20, 2018.

Ministry of Commerce of the People's Republic of China
March 19, 2018

 

 

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