Nitrile Rubber: Prelim AD Cash Deposit Rates Take Effect for France, Mexico, South Korea
The Commerce Department made preliminary affirmative antidumping duty determinations that imports of acrylonitrile-butadiene rubber from France (A-827-832), Mexico (A-201-855) and South Korea (A-580-912) are being sold in the U.S. at less than fair value. The agency will impose AD duty cash requirements retroactively on entries of subject merchandise from all French companies except Arlanxeo, and all South Korean companies except Kumho, beginning Nov. 4, 2021. For Arlanxeo, Kumho and all Mexican exporters, suspension of liquidation and cash deposit requirements take effect Feb. 2, 2022.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
New Scope Paragraph Addresses Exclusions for Additives, Rubber Processing Chemicals
In its preliminary determination, based on requests for clarification on what additives and rubber processing chemicals are excluded from the scope, Commerce is adopting new scope language proposed by U.S. domestic producers. Replacing previous paragraph three of the scope, the new paragraph says:
Also excluded from the scope of this investigation is: (a) AB Rubber containing additives incorporated during the compounding, mixing, molding, or use of AB Rubber comprising greater than twenty percent of the total weight of the product. Additives would include, but are not limited to, fillers (e.g. carbon black, silica, clay); reinforcement agents (e.g. fibers, carbon black, silica); vulcanization agents (e.g. sulfur, sulfur complexes, peroxide); or AB Rubber containing extension oils making up greater than forty percent of the total weight of the product. Such products would be generally classified under HTSUS subheading 4005; (b) AB Rubber containing polyvinyl chloride (PVC) making up greater than twenty percent of total weight of the product; (c) hydrogenated AB Rubber (commonly referred to as AB Rubber) produced by subsequent dissolution and hydrogenation of AB Rubber; (d) reactive liquid polymers containing acrylonitrile and butadiene with amine, epoxy, carboxyl or methacrylate vinyl chemical functionality.
Cash Deposits Retroactive 90 Days for All Indian Companies
Commerce made a finding that all exporters of AB rubber from France except Arlanxeo (i.e., the "all others" companies), as well as all exporters of AB rubber from South Korea except Kumho (i.e., LG Chem and the "all others" companies) increased their exports to the U.S. in the months before the preliminary determination. This “critical circumstances” finding by the agency allows it to retroactively require AD duty cash deposits for subject merchandise from these companies 90 days before the preliminary determination, i.e., Nov. 4, 2021.
AD Suspension of Liquidation and Cash Deposit Requirements
Commerce will instruct CBP to suspend liquidation for AD duty purposes for all entries of subject merchandise that are entered, or withdrawn from warehouse, on or after the dates listed in the tables below, and require cash deposits at the following rates (liquidation is already suspended pursuant to the concurrent CV duty investigations):
France
| Exporter/Producer | AD Rate | Sus. Liq. |
|---|---|---|
| Arlanxeo Emulsion Rubber France S.A.S. | 164.13% | 02/02/22 |
| All Others | 164.13% | 11/04/21 |
Mexico
| Exporter/Producer | AD Rate | Sus. Liq. |
|---|---|---|
| Industrias Negromex S.A. de C.V. | 18.43% | 02/02/22 |
| All Others | 18.43% | 02/02/22 |
South Korea
| Exporter/Producer | AD Rate | Sus. Liq. |
|---|---|---|
| Kumho Petrochemical Co., Ltd. | 19.2% | 02/02/22 |
| LG Chemical, Ltd. | 35.21% | 11/04/21 |
| All Others | 19.2% | 11/04/21 |
(The period of investigation is 04/01/20 - 03/31/21. See Commerce's notice for more information, including the scope (unchanged), suspension of liquidation, etc. See 2107260034 for a summary of the initiation of this AD duty investigation, and 2107010084 for a summary of the underlying petition.)