Petition Filed for New AD/CVD on Methylene Diphenyl Diisocyanate from China
A domestic producer recently filed a petition with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on methylene diphenyl diisocyanate from China. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CVD orders and the assessment of AD and CVD on importers. The Ad Hoc MDI Fair Trade Coalition, which consists of the BASF Corporation and The Dow Chemical Company, requested the investigation.
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The petition describes methylene diphenyl diisocyanate products as "aromatic isocyanates derived from aniline. Isocyanates are chemical compounds containing isocyanate groups (–N=C=O) and used in the production of polyurethane products."
Proposed Scope
The petition proposes the following scope for the investigations:
"The merchandise subject to this petition is aromatic polyisocyanate material whose composition includes two or more isocyanate groups (i.e., functional group containing a nitrogen atom, a carbon atom, and an oxygen atom bonded together ( NCO)) attached to one or more benzene rings (i.e., flat, symmetrical molecule made up of six carbon atoms arranged in a hexagonal ring and has the chemical formula C6H6) that are joined by methylene bridges (i.e., a carbon atom bound to two hydrogen atoms (−CH2− ) and connected by single bonds to two other distinct atoms in the rest of the molecule). These products are commonly called Polymeric, Monomeric, or Modified Methylene Diphenyl Diisocyanate (“MDI”) and also known as Methylene bisphenyl isocyanate, 4,4’-Diphenylmethane diisocyanate, Methylene di-p-phenylene ester of isocyanic acid, Methylene bis(4-phenyl isocyanate), among others. MDI is normally associated with Chemical Abstracts Service (“CAS”) registry numbers 9016-87-9, 101-68-8, 5873-54-1, 2536-05-2, 1689576-89-3, 25686-28-6, 26447-40-5, and 39310-05-9, but several others are also used.
"MDI ranges in physical form from low viscosity liquids to solids. MDI is covered by the scope of this petition irrespective of whether it has gone through a distillation process and regardless of acid content, reactivity, functionality, freeze stability, physical form, viscosity, grade, purity, molecular weight, or packaging.
"MDI may contain additives, such as catalysts, solvents, plasticizers, antioxidants, fire retardants, colorants, pigments, diluents, thickeners, fillers, softeners, toughening agents. The scope does not include mixtures of MDI with other materials, when the combined MDI component comprises less than 40 percent of the total weight of the mixture.
"MDI may be partially reacted with itself, polyol, or polyamines, and retain MDI component that has not fully chemically reacted so as to convert it into a different product no longer containing isocyanate groups. These products are known as homopolymer, uretonimine MDI, carbodiimide MDI, or prepolymers. The scope does not include partially reacted MDI when its NCO content is less than 10 weight percentage.
"For MDI that enter as part of a system with separately packaged polyol, only the MDI portion of the system is included in the scope. The scope does not include any separately packaged polyol that would not fall within the scope if entered on its own.
"The scope includes merchandise matching the above description that has been processed in a third country, including by commingling, diluting, introducing or removing additives, or performing any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the subject country.
"The scope also includes MDI that is commingled or blended with MDI from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of this investigations.
"This merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 2929.10.8010 and 3909.31.0000. Subject merchandise may also be entered under subheadings 3506.91.5000, 3815.90.5000, 3824.99.2900, 3824.99.9397, 3909.50.5000, 3911.90.4500, 3920.99.5000, and 3921.13.5000. The HTSUS subheadings are provided for convenience and customs purposes only; the written description of the scope is dispositive."
ITC and Commerce to Accept Comments Before Initiating Investigation
The Commerce Department and ITC will accept comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, the ITC and Commerce will initiate AD/CVD investigations.