MOFCOM Announcement No.100 of 2018 on Final Ruling on the Anti-dumping Investigation against Imports of Butan-1-ol Originating in Taiwan Region, Malaysia and the United States

Date: 2019-01-07 02:22:16, Source: MOFCOM, Today/Total Visits : 0/29

In accordance with the Anti-dumping Regulations of the People's Republic of China (hereinafter referred to as the "Anti-dumping Regulations"), on December 29, 2017, the Ministry of Commerce (hereinafter referred to as the "Investigation Authority") issued Announcement No.83 of 2017, deciding to carry out anti-dumping investigation against imports of butan-1-ol originating in Taiwan Region, Malaysia and the United States.

The Investigation Authority has investigated into the existence of dumping and dumping margin, the existence of damage to industry in mainland China 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 September 3, 2018, an announcement on the preliminary ruling, affirming that there was dumping of butan-1-ol originating in Taiwan Region, Malaysia and the United States and the domestic butan-1-ol industry was substantially damaged, and there was causal relationship between the dumping and the substantive damage.The Investigation Authority decides to carry out interim anti-dumping measures by levying margin from September 4, 2018.

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 butan-1-ol originating in Taiwan region, Malaysia and the United States and the butan-1-ol industry in mainland China 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 December 29, 2018, to impose anti-dumping duties on imports of butan-1-ol originating in Taiwan Region, Malaysia and the United States.

Details of the product under investigation are as follows:
Scope of investigation: imports of butan-1-ol originating in Taiwan region, Malaysia and the United States.
Name of the product under investigation: 正丁醇, also known as 1-丁醇、丙原醇、酪醇
Names in English: Butan-1-ol, or 1-Butanol, N-Butanol, N-Butyl Alcohol
Chemical formula: CH3(CH2)3OH
Chemical structural formula:

Physical and chemical characteristics: Butan-1-ol is an organic chemical product; from its appearance, it is usually colorless and volatile liquid. It smells like wine and is flammable. It is slightly soluble in water, and is miscible with ethanol, ether and other organic solvents.

Main purposes: Butan-1-ol is an important organic chemical raw material and mainly used to produce downstream products such as butyl acrylate, butyl acetate, dibutyl phthalate, butylamine and ethylene glycol monobutyl ether. It is widely used in paint, adhesive, textile additives, plasticizers and other fields.Butan-1-ol is also an extractant for grease, biochemical medicine and perfume, an additive for alkyd resin coatings, and also used to make surfactants. At the same time, butan-1-ol is also an excellent organic solvent.

The product is listed under tariff number of 29051300 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 Taiwan region:
1. FORMOSA PLASTICS CORPORATION 6.0%
2. All Others 56.1%
Companies of Malaysia:
1. PETRONAS CHEMICALS DERIVATIVES SDN BHD/ PETRONAS CHEMICALS MARKETING (LABUAN) LTD 12.7%
(This tax rate applies only to PETRONAS CHEMICALS MARKETING (LABUAN) LTD's export to China of the products under investigation produced by PETRONASCHEMICALS DERIVATIVES SDN BHD)
2. BASF PETRONAS Chemicals Sdn Bhd 26.7%
3. Optimal Chemicals Sdn Bhd 26.7%
4. All Others 26.7%
Companies of the United States:
1. OXEA CORPORATION 52.2%
2. Eastman Chemical Company 139. 3%
3. The Dow Chemical Company 139. 3%
4. BASF Corporation 139. 3%
5. All Others 139. 3%

III. Methods of levying anti-dumping duties

As of December 29, 2018, import operators shall pay relevant anti-dumping duties to the Customs of the People’s Republic of China when importing butan-1-ol originating in Taiwan Region, Malaysia and the United States. 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 September 4, 2018 to December 28, 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.

Anti-dumping duties are not retroactively imposed on imports of butan-1-ol originating in Taiwan Region, Malaysia and the United States before September 3, 2018 (included).

V. Period of levying anti-dumping duties

Imports of butan-1-ol originating in Taiwan Region, Malaysia and the United States will be subject to anti-dumping duties for five years as of December 29, 2018.

VI. New exporter review

Any new exporter in Taiwan Region, Malaysia and the United States 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 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.

MOFCOM Announcement No.100 of 2018 on Final Ruling on the Anti-dumping Investigation against Imports of Butan-1-ol Originating in Taiwan Region, Malaysia and the United States will take effect as of December 29, 2018.

Ministry of Commerce of the People's Republic of China
December 28, 2018


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