Government Regulation
March 22, 2026
China Responds to Record Trade Surplus
China vows more open economy in bid to boost confidence
ByLiam Mo and Ryan Woo
March 22 2026 – 8:00am
China has faced tensions with major trading partners over its record $A1.7 trillion trade surplus. Photo: EPA PHOTO
Chinese Premier Li Qiang has pledged to further open up the economy and fully implement national treatment for foreign enterprises as the country seeks to reassure the outside world amid rising global trade tensions.
China will import more high-quality foreign goods and work with all parties to promote optimised and balanced trade development and expand the global trade pie, Li told the China Development Forum in Beijing, state media reported on Sunday.
The annual two-day forum, which concludes on Monday, allows Beijing to lay out its economic vision and investment opportunities to foreign business leaders, Chinese officials, economists and academics.
This year’s gathering comes as the world’s second-largest economy faces rising tensions with major trading partners over 2025’s record $US1.2 ($A1.7) trillion trade surplus.
Premier Li Qiang says China is committed to being a “harbour of stability” for the world economy. (EPA PHOTO)
Challenges for Beijing are aplenty, including deflecting concerns from an increasing number of global capitals about China’s trade practices and overcapacity, as well as their overreliance on key Chinese products.
While Li’s speech did not appear to directly mention the surplus, his pledges indicate an awareness that the issue could disrupt international relations at a time when China has reached a temporary truce with the US on trade.
US President Donald Trump last week postponed a trip to Beijing to meet with Chinese President Xi Jinping due to the Iran war, delaying an effort to ease tensions between the world’s two biggest economies.
In a separate speech at the forum, China’s central bank governor Pan Gongsheng also sought to alleviate concerns surrounding the trade surplus.
“Analysing global economic imbalances requires looking not only at trade in goods but also services, and not only at the current account but also the financial account,” Pan said, according to a transcript of his speech published by the People’s Bank of China, adding that China is the country with the largest goods surplus but also the largest services deficit.
China has no need and no intention to gain trade competitive advantage through currency depreciation, Pan said.
Senior executives attending include those from Apple, Samsung Electronics, Volkswagen, chipmaker Broadcom Inc, industrial conglomerate Siemens, chemical producer BASF and pharmaceutical firm Novartis.
There were no Japanese company executives on the guest list on the forum’s website.
said foreign firms would be treated in the same way as domestic ones, allowing enterprises from all countries to develop with confidence and realise their ambitions in China.
In a separate meeting, Commerce Minister Wang Wentao told business leaders from a US pharmaceutical trade group and executives from five major multinational drug companies that China would strengthen intellectual property protection and improve policy transparency.
Australian Associated Press
March 22, 2026
IEEPA Duties Refund System
CBP has provided another update to the U.S. Court of International Trade on the development of its new ACE-based refund system for IEEPA duties, known as CAPE (Consolidated Administration and Processing of Entries).
While progress is being made, the system is still under development and not yet ready for deployment.
Latest Development Status
As of March 19, CBP reports the following progress:
- Claim Portal: 73% complete (testing underway)
- Mass Processing: 45% complete (validations and tracking in development)
- Review & Liquidation/Reliquidation: 80% complete (now in testing phase)
- Refund Processing: 63% complete (including refund consolidation functionality)
According to CBP, the system is now moving into more advanced testing phases, which are required before it can go live.
What This Means for Importers
Once operational, CAPE will allow importers and brokers to:
- Submit refund requests directly through a new ACE portal interface
- Have IEEPA tariffs automatically removed and duties recalculated
- Receive consolidated refunds at the importer level, including applicable interest
CBP also confirmed it is building functionality to track processing history and validate entries, which may impact which entries are eligible in early phases of the rollout.
Key Takeaway
Although progress continues, this update confirms that the refund system is still several weeks away from being fully operational.
In the meantime, importers should continue preparing by:
- Reviewing entries that may be eligible for refunds
- Ensuring ACE accounts are properly configured
- Completing ACH refund setup to avoid delays once payments begin
February 18, 2026
EU ADD on BDO
EU adds hefty anti-dumping duties to 1,4-butanediol
By Anthony King17 February 2026
Imports from China, US and Saudi Arabia will see tariffs of 52–143%
The European Commission has introduced massive antidumping duties on imports of 1,4-butadiene (BDO), an important intermediate molecule in chemical manufacturing. The provisional duties are 106–114% on all imports originating in China, 52% for all imports from Saudi Arabia and 136–143% on all imports originating in the US.
Source: © Wirestock Creators/Shutterstock
1,4-butanediol is a key intermediate and component of in various coatings, polymers and solvents
‘This is a step change in the EU ramping up its defenses against dumping,’ says Richard Carter, an independent consultant to the chemical industry and former BASF manager. ‘My hope is that this is the start of a more aggressive stance.’
The commission’s 70-page report sets out the evidence and decision to impose duties. BDO is used in various coatings, polymers and solvents. Four companies generate BDO in the EU directly, employing around 500 staff in Germany, the Netherlands and Italy. The volume of imports from the three named countries increased from around 49,000 tonnes in 2018 to around 89,000 tonnes in 2024, an increase of 82%. Ineos (one of the four EU producers) has filed a raft of antidumping cases with the European Commission, including for BDO.
The problem, says Carter, is the buildup of massive overcapacity in China, allowing Chinese producers set prices that others must follow. Chinese capacity is now nine times larger than the EU, he adds. ‘This is part of an onslaught to dominate western chemical markets, in my view,’ says Carter. ‘Trade flows show that European producers have almost switched off their plants and are bringing in BDO from their own facilities in the US.’
Ineos has also filed complaints for polyvinyl chloride, monoethylene gylcol, terephthalic acid, butyl acetate and polyolefins. In a past statement, it complained about the staffing levels and the response times in the commission’s antidumping investigations.
Anti-dumping investigations typically run for 12 to 15 months. ‘It will take 3-6 months for the provisional duties to be applied, then another 6-9 months for the final duties to be applied, if passed,’ says Mohamed Chilmeran, petrochemical analyst at Wood Mackenzie.
Parties told the Commission that EU industry was simply not competitive enough due to its high costs, but this was rejected. The industry was profitable in 2021 and 2022. ‘The root cause of the injury was increasing volumes of dumped imports from the countries concerned,’ said the report, ‘which depressed BDO prices to levels which did not permit the Union industry to recover its costs and increased the cost of production per unit of the Union from lower sales and production levels.’
February 16, 2026
EPA Formaldehyde Standards for Wood Composites
EPA’s proposed formaldehyde standards for composite wood products
By Larry Adams
February 13, 2026 | 12:22 pm CST
The Environmental Protection Agency (EPA) is proposing to update several voluntary consensus standards in the Agency’s formaldehyde standards for composite wood products regulations under the Toxic Substances Control Act (TSCA). These new standards primarily update test methods, providing “manufacturers and testing laboratories with an additional, internationally recognized tool to help ensure consistent, high-quality emissions data across the industry.
EPA is also proposing to conform these updated standards to the scope and definitional sections in the final rule and to incorporate by reference a new small-scale quality control chamber test method, similar to the current methods already incorporated by reference.
The proposal was published in the Federal Register on Feb. 11. Comments regarding the proposal must be received on or before March 13, 2026, according to the publication in the Federal Register. Comments, identified by docket identification (ID) number EPA-HQ-OPPT-2017-0245, can be submitted using the Federal eRulemaking Portal at https://www.regulations.gov.
Calculating the risk
In a formaldehyde-related announcement in December 2025, the EPA updated how it calculates risk to workers. The Draft Risk Calculation Memorandum for Formaldehyde under TSCA for Public Comment does not dispute that there is a formaldehyde health risk, but enhances the scientific rigor of the underlying information used to support the risk determination.
In a Jan. 30 letter to the Environmental Protection Agency, Keith Christman, president, Decorative Hardwoods Association, expressed the organization’s “strong support” for the Updated Draft Risk Calculation Memorandum for Formaldehyde, especially the EPA’s revision of its formaldehyde inhalation risk assessment toward a threshold-based risk assessment framework. DHA represents North American manufacturers of hardwood plywood, engineered wood floors and hardwood veneer.
“We commend EPA for its rigorous and transparent reassessment of formaldehyde risks,” Christman wrote. “We support EPA’s revision of its formaldehyde inhalation risk assessment to reflect the best available science.”
He said that the revised approach is grounded in the latest scientific evidence and stakeholder input. “We particularly support EPA’s reliance on controlled human exposure studies, which provide robust, directly relevant data for evaluating health effects. This evidence-based methodology ensures that regulatory decisions are anchored in real-world exposures and outcomes, fostering both health protection and regulatory credibility.”
The EPA, in the February Federal Register announcement, detailed the quality control test method it supports. The agency proposes to add ISO 12460-2:2024(en), Wood-based panels—Determination of Formaldehyde Release—Part 2: Small-scale Chamber Method (Ref. 13), as a quality control test method in 40 CFR 770.20(b)(1) and to IBR the standard in 40 CFR 770.99.
According to the Register, the standard was approved through ISO and describes the procedure for using a small-scale chamber test method to test formaldehyde emissions from wood products under defined test conditions of temperature, relative humidity, loading and air exchange rate by measuring the concentrations of formaldehyde in air from samples of a specified surface area. This standard is a small-scale quality control chamber test method that EPA is proposing to incorporate by reference as an allowable alternative quality control test method, due to its similarity to other standards currently incorporated by reference for quality control methods, and to allow regulated entities to make use of the wider range of analytical methods the standard allows, such as laser absorption spectroscopy.
Sensory irritation
In the December 2025 updated draft risk calculation for formaldehyde, the EPA proposed using acute sensory irritation (eye/throat irritation) as the most sensitive endpoint for setting safety standards, rather than cancer risk. The EPA suggests that keeping exposure levels low enough to prevent irritation if exposure levels are at 0.3 ppm or less, for “any duration,” individuals are protected “against all effects, including cancer.”
The DHA also voiced its support for the EPA’s selection of sensory irritation as the health-protective endpoint is fully justified by the scientific literature. “The weight of the scientific evidence demonstrates that sensory irritation is the most sensitive and biologically relevant endpoint for inhalation exposure to formaldehyde. Thus, protecting against sensory irritation is protective of downstream effects, including chronic non-cancer and cancer outcomes, under a threshold mode of action. EPA’s revised framework appropriately reflects these conclusions and aligns with recommendations from EPA’s own scientific advisory bodies,” according to the letter.
Sidebar: Voluntary consensus standards included in the proposal:
- ANSI A190.1-2022, Product Standard for Structural Glued Laminated Timber (ANSI)
- ASTM D5582-22, Standard Test Method for Determining Formaldehyde Levels from Wood Products Using a Desiccator (ASTM)
- ASTM D6007-22, Standard Test Method for Determining Formaldehyde Concentrations in Air from Wood Products Using a Small-Scale Chamber (ASTM)
- ASTM E1333-22, Standard Test Method for Determining Formaldehyde Concentrations in Air and Emission Rates from Wood Products Using a Large Chamber (ASTM)
- BS EN ISO 12460-3:2023, Wood-based panels—Determination of formaldehyde release—Part 3: Gas analysis method (BSI)
Wood-based panels—Determination of formaldehyde release—Part 3: Gas analysis method (BS EN ISO)
PS 1-22, Structural Plywood (NIST)
February 11, 2026
Indian ADD for TDI 80
Government Extends Anti-Dumping Duty on TDI Imports from EU, Saudi Arabia
Custom Duty | Notifications ADD, Notifications/Circulars The Ministry of Finance has issued Notification No. 03/2026-Customs (ADD) dated 10 February 2026, imposing anti-dumping duty on imports of Toluene Di-Isocyanate (TDI) having isomer content in the ratio of 80:20, classified under tariff item 2929 10 20, originating in or exported from the European Union and Saudi Arabia. The decision follows final findings of the designated authority dated 12 November 2025, which concluded that cessation of existing anti-dumping duty would likely lead to continuation of dumping and injury to the domestic industry.
Exercising powers under Section 9A of the Customs Tariff Act, 1975 and relevant rules, the Government has specified producer-wise duty rates ranging from US$ 102.05 to US$ 344.33 per metric tonne. The duty will remain effective for five years unless earlier revoked or amended and shall be payable in Indian currency based on the exchange rate notified under the Customs Act.
MINISTRY OF FINANCE (Department of Revenue) Notification No. 03/2026-Customs (ADD) | Dated: 10th February, 2026 G.S.R. 121(E).— Whereas, in the matter of “Toluene Di-Isocyanate (TDI) having isomer content in the ratio of 80:20” (hereinafter referred to as the subject goods) falling under tariff item 2929 10 20 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in or exported from European Union and Saudi Arabia (hereinafter referred to as the subject countries), and imported into India, the designated authority in its final findings, published in the Gazette of India, Extraordinary, Part I, section 1 vide notification No. 7/14/2024-DGTR, dated the 12th November, 2025 has inter alia come to the conclusion that there is a likelihood of continuation of dumping and consequent injury to the domestic industry in case of cessation of anti-dumping duty in force, and has recommended continued imposition of anti-dumping duty on imports of the subject goods originating in or exported from the subject countries.
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 and in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 28/2021-Customs (ADD), dated the 27th April, 2021, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 297(E), dated the 27th April, 2021, except as respects things done or omitted to be done before such supersession, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under tariff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the countries as specified in the corresponding entry in column (4), exported from the countries as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6), and imported into India, an anti-dumping duty at the rate equal to the amount specified in corresponding entry in column (7), in the currency as specified in the corresponding entry in column (9) and as per the unit of measurement as specified in the corresponding entry in column (8) of the said Table, namely:−
Customs classification is only indicative and not binding on the scope of the subject goods. ** The subject goods in the present investigation concerns TDI having isomer content in the ratio of (80:20). All other grades are beyond the scope of subject goods. 2.
The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded, or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.
Explanation. – For the purposes of this notification, the rate of exchange applicable for the purposes of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Act. [F. No. 190349/6/2026-TRU] DHEERAJ SHARMA, Under Secy.
Read more at: https://taxguru.in/custom-duty/government-extends-anti-dumping-duty-tdi-imports-eu-saudi-arabia.html
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