China's Ministry of Commerce Takes Action Again, Imposes Hefty Penalties on the US, EU, UK, and New Zealand in a Five-Year Anti-Dumping War Against Halogenated Butyl Rubber!

On August 19, the Ministry of Commerce issued the announcement of the final review ruling on the anti-dumping measures applied to imports of halogenated butyl rubber originating in the United States, the European Union, the United Kingdom and Singapore.

On August 10, 2018, the Ministry of Commerce issued Notice No. 40 of 2018, deciding to impose anti-dumping duties on imports of halogenated butyl rubber originating in the United States, the European Union and Singapore from August 20, 2018. The anti-dumping duty rate is 75.5% for US companies, 27.4%-71.9% for EU companies, 23.1%-45.2% for Singapore companies, and the implementation period is 5 years.

On November 19, 2019, the Ministry of Commerce issued Notice No. 52 of 2019, deciding to review the dumping and dumping margin of the anti-dumping measures applied to the imports of halogenated butyl rubber produced by ExxonMobil Corporation and ExxonMobil Chemical Co., LTD. On November 19, 2020, at the request of the relevant interested parties, the Ministry of Commerce issued a notice to terminate the review investigation during the period.

On January 29, 2021, the Ministry of Commerce issued Announcement No. 3 of 2021. According to the announcement, after the end of the Brexit transition period on December 31, 2020, the trade remedy measures previously imposed on the EU will continue to apply to the EU and the UK, with the implementation period unchanged; After that date, new trade remedy investigations and reviews launched against the EU will no longer deal with the UK as an EU member state.

On August 16, 2023, in response to the application of China's halobutyl rubber industry, the Ministry of Commerce issued Notice No. 31 of 2023, deciding to conduct a final review of the anti-dumping measures applicable to imports of halobutyl rubber originating in the United States, the European Union, the United Kingdom and Singapore from August 20, 2023.

Mofcom has investigated the possibility of continued or recurrence of dumping of halogenated butyl rubber imports from the United States, the European Union, the United Kingdom and Singapore, and the possibility of continued or recurrence of injury to China's halogenated butyl rubber industry if the anti-dumping measures are terminated. And in accordance with the Anti-dumping Regulations of the People's Republic of China (hereinafter referred to as the Anti-dumping Regulations) Article 48 to make a review ruling (see annex).

The relevant matters are hereby announced as follows:

1. Adjudication of review

The Ministry of Commerce ruled that if the anti-dumping measures are terminated, the dumping of imports of halogenated butyl rubber from the United States, the European Union, the United Kingdom and Singapore to China may continue or reoccur, and the damage caused to China's halogenated butyl rubber industry may continue or reoccur.

2. Anti-dumping measures

In accordance with Article 50 of the Anti-dumping Regulations, the Ministry of Commerce, on the basis of the findings of the investigation, proposes to the Customs Tariff Commission of The State Council the continuation of the implementation of anti-dumping measures, and the Customs Tariff Commission of The State Council, on the basis of the recommendation of the Ministry of Commerce, makes a decision that, as of August 20, 2024, Anti-dumping duties on imports of halogenated butyl rubber originating in the United States, the European Union, the United Kingdom and Singapore will continue to be imposed for a period of five years.

The range of products subject to anti-dumping duties is the products to which the original anti-dumping measures apply, which is consistent with the range of products in Announcement No. 40 of 2018 of the Ministry of Commerce. The details are as follows:

Chinese name: halogenated butyl rubber (in the import and export tariff of the People's Republic of China, the name is halogenated butyl rubber).

Halogenated Butyl Rubber (Chlorobutyl Rubber, Bromobutyl Rubber)

Main molecular structure formula:

X is Br or Cl

Physicochemical properties: Halogenated butyl rubber is the product of butyl rubber and halogenated agent reaction, is an improvement of ordinary butyl rubber. The halogenation reaction includes chlorination and bromination, so halogenated butyl rubber can be divided into two categories: chlorinated butyl rubber and brominated butyl rubber. Halogenated butyl rubber products are in the form of white to light amber colored rubber blocks. Halogenated butyl rubber has the characteristics of fast vulcanization, good compatibility with other unsaturated rubber, high self-viscosity and mutual viscosity.

Main uses: Halogenated butyl rubber is mainly used for tubeless airtight layer, heat-resistant inner tube, heat-resistant hose and conveyor belt, medicinal bottle stopper, shockproof pad, adhesive and sealing material.

This product belongs to the Import and Export Tariff of the People's Republic of China: 40023910 and 40023990.

The tax rate for the continued imposition of anti-dumping duties is the same as that stipulated in Announcement No. 40 of 2018 of the Ministry of Commerce. The anti-dumping duty rates imposed on each company are as follows:

American Company:

1. Exxonmobil 75.5%

(Exxon Mobil Corporation)

2. Other American companies 75.5%

EU companies:

1. Alang New Co., LTD. Belgium 27.4%

(ARLANXEO Belgium NV)

2. Other EU companies 71.9%

UK Company:

1. Exxonmobil Chemical Company Limited 71.9%

(ExxonMobil Chemical Limited)

2. Other British companies 71.9%

Singapore Company:

1. Alang Suntec Singapore Pte LTD 23.1%

(ARLANXEO SINGAPORE PTE.LTD.)

2. Other Singapore companies 45.2%

Methods for levying anti-dumping duties

From August 20, 2024, import operators shall pay corresponding anti-dumping duties to the Customs of the People's Republic of China when importing halogenated butyl rubber originating in the United States, the European Union, the United Kingdom and Singapore. Anti-dumping duty shall be assessed at the customs value as determined by the customs. The calculation formula is: anti-dumping duty = customs value × anti-dumping duty rate. Value added tax (VAT) in import links shall be assessed at the customs value approved by the customs plus customs duty and anti-dumping duty as the assessable price.

Administrative reconsideration and administrative litigation

In accordance with the provisions of Article 53 of the Anti-dumping Regulations, if the party is not satisfied with the decision of this review, it may apply for administrative reconsideration according to law, or bring a lawsuit in a people's court according to law.

V. This Announcement shall take effect as of August 20, 2024

Commerce Department

August 19, 2024