Government Regulation

December 10, 2024

Alkyl Phosphate Esters Antidumping Update

Preliminary Affirmative Determination in the Antidumping Duty Investigation of Certain Alkyl Phosphate Esters from the People’s Republic of China

On November 27, 2024, the U.S. Department of Commerce (Commerce) announced its preliminary affirmative determination in the antidumping duty (AD) investigation of certain alkyl phosphate esters from the People’s Republic of China (China). Commerce is also conducting a concurrent countervailing duty (CVD) investigation of certain alkyl phosphate esters from China.

Preliminary Dumping Rates 

China

ExporterProducerEstimated Weighted-Average Dumping Margin
(percent)
Cash Deposit Rate (Adjusted for Subsidy Offset(s))
(percent)
Anhui RunYue Technology Co., Ltd.Anhui RunYue Technology Co., Ltd.247.52175.82
Zhejiang Wansheng Co., Ltd.Zhejiang Wansheng Co., Ltd.164.29141.98
ACETO (SHANGHAI) LTD.Xinji Hongzheng Chemical Co., Ltd.182.22135.22
Anhui Shengli Import and Export Co., Ltd.Anhui Shengli Pesticide & Chemistry Co., Ltd.182.22135.22
Anhui Shengli Import and Export Co., Ltd.Ningguo Long Day Chemical Co., Ltd.182.22135.22
Fujian Wynca Technology Co., Ltd.Fujian Wynca Technology Co., Ltd.182.22135.22
Fujian Wynca Technology Co., Ltd.Anhui RunYue Technology Co., Ltd.182.22135.22
Fujian Wynca Technology Co., Ltd.Shandong Yarong Chemical Co., Ltd.182.22135.22
Shandong Yarong Chemical Co., Ltd.Shandong Yarong Chemical Co., Ltd.182.22135.22
Shanghai Iroyal Chemical Co., Ltd.Futong Chemical Co., Ltd.182.22135.22
Shanghai Iroyal Chemical Co., Ltd.Fujian Wynca Technology Co., Ltd.182.22135.22
Shanghai Iroyal Chemical Co., Ltd.Zhejiang Hong Hao Technology Co., Ltd.182.22135.22
Shanghai Iroyal Chemical Co., Ltd.Shandong Yarong Chemical Co., Ltd.182.22135.22
Shanghai Iroyal Chemical Co., Ltd.Xuancheng City Trooyawn Refined Chemical Industry Co., Ltd.182.22135.22
Shanghai Yongxiangshun International Trade Co., Ltd.Hebei Zhenxing Chemical and Rubber Co., Ltd.182.22135.22
Xuancheng City Trooyawn Refined Chemical Industry Co., Ltd.Xuancheng City Trooyawn Refined Chemical Industry Co., Ltd.182.22135.22
Yoke Chemicals and New Materials (Shanghai) Co. Ltd.Jiangsu Yoke Technology Co., Ltd.182.22135.22
Zhangjiagang Fortune Chemical Co., Ltd.Nantong Jiangshan Agrochemical & Chemicals Limited Liability Co., Ltd.182.22135.22
Zhangjiagnag Fortune Chemical Co., Ltd .Shandong Yarong Chemical Co., Ltd.182.22135.22
China-Wide Entity269.60*247.29

* This rate is based on facts available with adverse inferences.
 

Case Calendar

EventAD INVESTIGATION
Petition FiledApril 23, 2024
Commerce Initiation DateMay 13, 2024
ITC Preliminary Determination*June 7, 2024
Commerce Preliminary DeterminationNovember 26, 2024
Commerce Final DeterminationApril 17, 2025*
ITC Final Determination**June 2, 2025
Issuance of Order***June 9, 2025

NOTE: Commerce’s preliminary and final determination deadlines are governed by statute. For AD investigations, the deadlines are set forth in sections 733(b) and 735(a) of the Tariff Act of 1930, as amended.
* If a deadline falls on a weekend of Federal Holiday, the deadline falls to the next business day. 
** This will take place only in the event of a final affirmative determination from Commerce.
*** This will take place only in the event of final affirmative determinations from Commerce and the U.S. International Trade Commission (ITC).

Import Statistics

China202120222023
Volume (KG)51,713,54847,871,89253,501,318
Value (USD)118,783,614104,873,45373,791,562

Source: U.S. Census Bureau, accessed through S&P Global Trade Atlas (Harmonized Tariff Schedule of the United States subheading 2919.90.5050).

Other Case Information

  • The petitioner is ICL-IP America, Inc. (Saint Louis, MO)
  • For general information and next steps, please refer to a list of preliminary FAQs. 
  • Additional case information, including the scope of the investigations, are on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). Once you log in, please refer to case numbers: Trading PartnerAntidumping Duty Investigation Case NumberChinaA-570-160
  • To date, Commerce maintains 716 AD and CVD orders that provide relief to American companies and industries impacted by unfair trade.

https://www.trade.gov/preliminary-determinations-ad-investigation-certain-alkyl-phosphate-esters-peoples-republic-china

November 25, 2024

Government Regulation Impacting the RV Industry

RV industry continues fight against multi-state motorhome ‘ban’

By Larry Adams

November 22, 2024 | 12:51 pm CST

Six states are on a collision course to limit the sale of new gas- and diesel-powered RVs.

The states — California, Washington, New York, Oregon, Massachusetts, and New Jersey — are poised to effectively eliminate the sale of new gas- and diesel-powered RVs starting January 1, 2025.

RV Industry Association Government Affairs staff, along with several of our motorhome manufacturer members, met on Tuesday. Nov. 19, with the California Air Resources Board (CARB) staff overseeing the Advanced Clean Trucks (ACT) regulation. 

According to the RVIA’s most recent newsletter, the meeting was requested by CARB to discuss in more detail the RV industry comments submitted as part of the ACT amendments proceeding in October. 

“They also wanted to hear more directly from our members about what they are being told by the chassis manufacturers about why they are unable to deliver products,” according to the newsletter.

RVIA representatives repeated its belief that an “exemption or a delay in implementation from the ACT would be of greatest benefit to allow the industry to continue to provide motorhomes to dealers and customers in the state.” 

CARB said it does have the authority to create exemptions to the regulation. This is different than what CARB has said on other regulations when they stated that allowable exemption are set by the law which created the rule, not by CARB.

“While no final resolution was attained, all sides agreed to continue talking and another meeting is being arranged in early December. The RV Industry Association will continue to explore all its options to find an equitable solution.”

In 2025, California’s Advanced Clean Trucks (ACT) regulation, aimed at promoting zero-emission vehicles (ZEVs), will create a near-total “ban” on motorhome sales in the state, as well as in additional states that follow the California Air Resource Board (CARB) regulations. While the regulation does not specifically ban motorhome sales, the ACT regulation mandates manufacturers of medium and heavy-duty vehicles to sell an increasing percentage of ZEVs each year. This has led chassis manufacturers to halt sales of traditional internal combustion engine chassis for motorhomes in California, stemming from the lack of ZEV chassis suitable for motorhomes.

Since 2020, the RV Industry Association has been working with CARB on the ACT regulations through conversations directly with CARB staff as well as written and oral testimony at multiple public hearings. When CARB filed its proposed amendments earlier this year, the RV industry met with CARB staff to discuss the impact on the industry. The Association also submitted comments laying out the negative impact of the regulation on the motorhome industry.

Unfortunately, CARB did not make any further amendment that would alleviate the problem of motorhome manufacturers being told by chassis manufacturers that they would not be able to supply ICE (internal combustion engine) chassis for sale into California since they could not offset their ZEV deficits by sales of a ZEV motorhome chassis.

Making the matter more complicated, it is not just the ACT that is causing the issue right now; it is the trio of regulations passed in the last 2-3 years: the ACT, along with the Omnibus Low NOx rule and the Advanced Clean Fleets rule. These three rules work together to gradually transition medium- and heavy-duty vehicles to zero-emission vehicles (ZEVs) by 2036. We have commented to CARB on each of them, and also on the Small Off-Road Engine regulation which threatens spark-ignition engines on generators.

https://www.woodworkingnetwork.com/news/woodworking-industry-news/rv-industry-continues-fight-against-multi-state-motorhome-ban

October 31, 2024

Things Move Slowly

US Sues Executive for Tariff Evasion on Chinese Imports

US Sues Executive for Tariff Evasion on Chinese Imports
The Department of Justice in Washington on July 29, 2024. Madalina Vasiliu/The Epoch Times

By Catherine Yang

10/31/2024Updated: 10/31/2024

The United States has opened a civil suit against a furniture company executive for allegedly making false statements to customs officials to avoid paying import duties on products manufactured in China to be sold in the United States.

The Department of Justice (DOJ), Customs and Border Protection, and Homeland Security Investigations officials announced the suit on Oct. 31, alleging Lawrence Bivona, former president of Delaware-based company LaJobi Inc., evaded paying around $7 million in duties. The company sold children’s furniture.

The goods that Bivona imported were subject to tariffs of 216 percent, but the executive allegedly made false statements that resulted in the company only paying up to 7 percent import duty rates. According to the DOJ, Bivona misrepresented the manufacturers of goods imported so the company could pay lower duties.

The tariff had been implemented as an antidumping measure to counter the Chinese communist regime’s subsidization of Chinese industries to the point of harming United States businesses, according to officials.

“Anti-dumping duties play an important role in countering illegal foreign trade practices and protecting U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the DOJ’s Civil Division. “We will continue to pursue those who seek to gain an unfair advantage by violating our trade laws.”

The furniture imports occurred in 2009 and 2010. The government is seeking $15 million in civil penalties in addition to $7 million in recovery of unpaid tariffs.

Earlier this month, the interagency fraud task force similarly brought civil action against a former energy executive for evading tariffs on imported Chinese solar panels between 2014 and 2018, seeking $300,000 in recovery of unpaid duties and $800,000 in civil penalties.

The United States, the European Union, and other nations have recently increased the use and enforcement of tariffs on Chinese imports to combat the Chinese Communist Party’s (CCP’s) trade practices. China under the CCP does not have a free market economy; the regime instead sets and enforces industry output to align with the regime’s goals.

U.S. and international trade officials continue to warn that the CCP’s “predatory“ trade practices are meant to run global competitors out of business. The CCP may subsidize a Chinese industry so that it can export goods at a price so far below market rate that foreign businesses cannot compete, a practice known as dumping. The European Union recently hiked tariffs on Chinese electric vehicles to up to 45 percent after a year-long investigation concluded that Chinese makers were dumping their products on the European market. The vast majority of the EU’s trade investigations last year targeted imports from China.

White House national security adviser Jake Sullivan recently said these tariffs have helped prevent a second “China shock” on U.S. industries.

“The PRC [People’s Republic of China] is producing far more than domestic demand, dumping excess onto global markets at artificially low prices, driving manufacturers around the world out of business and creating a choke hold on supply chains,” Sullivan said at a Brookings Institution event in Washington on oct. 23.

U.S. officials and lawmakers have also highlighted national security risks as an additional reason to limit Chinese imports, recently proposing a new rule to ban Chinese auto parts for connected vehicles.

https://www.theepochtimes.com/us/us-sues-executive-for-tariff-evasion-on-chinese-imports-5751446

October 23, 2024

Quadrant Communication Regarding TCPP

October 18, 2024


Update: Compliance with Antidumping Duties and Tariffs for Spray Foam Products


U.S. International Trade Commission (USITC) into imports of alkyl phosphate esters (TCPP fire retardants) from China for price dumping (701-TA-721 and 731-TA-1689).

To all Quadrant Performance Materials Customers,


On September 30, 2024, the Department of Commerce International Trade Administration announced their preliminary determination, concluding that countervailable subsidies—financial assistance and other unfair trade practices—have been provided by the Chinese government to its domestic producers of alkyl phosphate esters (TCPP), thus distorting international trade. These subsidies have given unfair advantages to Chinese manufactures, enabling them to sell goods at lower prices. For more details, please see the Federal Register notice: Federal Register Document C-570-169.

Countervailing duties (additional tariffs) have been imposed on the importation of Chinese manufactured TCPP, with tariffs ranging from 50% to 564%, depending on the company.
A variety of US Industries, including spray foam, use imported TCPP as the US domestic production capacity is insufficient to meet Industry demands. Consequently, the raw material costs for spray foam are expected to increase.


Furthermore, the investigation is still ongoing, to further assess additional antidumping tariff and or penalties; with a final determination expected in late November and or before February 9, 2025.
We strongly recommend that you obtain documentation from your spray foam suppliers to ensure that the products you have purchased since 2018, as well as those you are currently buying, comply with all applicable duty and tariff regulations.


Quadrant’s Commitment to Compliance

Quadrant Performance Materials has and will continue to adhere to all relevant duties and tariffs for any imported materials used in our spray foam systems and other products. We verify and ensure the payment of these duties and tariffs, to maintain transparency and compliance.
If you have any questions or need further clarification on this issue, please do not hesitate to contact us.


Quadrant Performance Materials
200 Industrial Blvd, McKinney, TX 75069
(972)542-0072

October 14, 2024

Petroquímica Río Tercero to Close TDI Plant in Argentina

The closure of the TDI plant due to lack of competitiveness causes the first layoffs

The closure of the TDI (toluene diisocyanate) production plant, belonging to the Petrochemical company Río Tercero, begins to cause layoffs and suspensions of personnel, as the firm had anticipated.

On Sunday night, the Petrochemical Chemical Industries Staff Union of Río Tercero promoted a protest measure in front of the entrance to the chemical center, which consisted of the total closure of Savio Avenue in that sector for a few hours.

The action is a direct union response to the first telegrams of dismissal and dismissal of personnel that, they claim, were sent by the company to the workers via email. In principle, about 120 separations are mentioned.

The lack of competitiveness in the face of the national government’s opening of TDI imports from Asian countries was the cause alleged by the Piero group firm to close the main production unit of the local factory, although it stressed that it will remain active. the rest of the plants.

In that direction, Mayor Marcos Ferrer expressed his concern about the conflict, and blamed the national economic policies of indiscriminate opening of foreign products.

He argued that the national industry cannot compete on equal terms with Asia, due to the great asymmetry of tax, labor, and energy costs.

In that sense, he assured that he will begin negotiations with the Nation to attempt some dialogue that could lead to concrete measures to protect the industry, although he admitted that it is a very difficult option to achieve.

Regarding the layoffs, Ferrer said that he fears a domino effect in the rest of the industries in the chemical sector, mainly in the Military Factory, since Petrochemical buys almost all of the nitric acid production from him as an input for the TDI, which it will no longer produce.

Thus, there are fears for the future of the almost 60 workers affected by the operation of the state company’s nitric plant.

This Monday, at 10, a presentation by the chemical union is scheduled before the Provincial Labor Secretariat, in order to request a mandatory conciliation that takes the conflict back to its origin, to open a stage of negotiation.

Meanwhile, at 6:30 p.m. a protest march is called through the streets of the city.

TDI is the main input for the manufacture of foam rubber for mattresses and pillows, as well as accessories for the automotive industry.

https://euro.eseuro.com/today/7581.html