Petition Filed for New AD/CVD on Monomer and Oligomers From South Korea, Taiwan
A domestic producer recently filed a petition with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on monomers and oligomers imported from South Korea and Taiwan. Commerce now will 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. Arkema, Inc. requested the investigation.
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The petitioner seeks relief from "dumped imports of certain multifunctional acrylate and methacrylate monomers, and acrylated bisphenol-A epoxy based oligomers" from Korea and Taiwan and subsidized imports from Taiwan."
Proposed Scope
The petition proposes the following scope for the investigations:
"The products subject to these investigations are certain multifunctional acrylate and methacrylate monomers, and acrylated bisphenol-A epoxy based oligomers (collectively, “certain monomers and oligomers” or “CMOs”) that are derived from chemical reactions involving the use of acrylic or methacrylic acid. Products within the scope are listed below and have the following Chemical Abstracts Service (“CAS”) numbers: 109-16-0 (Triethylene glycol dimethacrylate (TEGDMA)), 13048-33-4 (1,6-hexanediol diacrylate (HDDA)), 42978-66-5 (Tripropylene glycol diacrylate (TPGDA)), 3290-92-4 (Trimethylol-propane trimethacrylate (TMPTMA)), 15625-89-5 (Trimethylolpropane triacrylate (TMPTA)), 28961-43-5 (Ethoxylated (3) trimethylol propane triacrylate (EOTMPTA)), 57472-68-1 (Dipropylene glycol diacrylate (DPGDA)) and 55818-57-0 (Bisphenol-A-epichlorohydrin copolymer acrylate (EPOXY ACRYLATE)).
"The monomers are generally known as multifunctional acrylates (“MFAs”) or multifunctional methacrylates (“MFMAs”) depending on whether the functional groups are acrylate or methacrylate. The monomers generally contain stabilizers and inhibitors. The monomers are either Di-functional or Tri-functional (having 2 or 3 functional groups/molecule), have viscosities of 9 to 15cPs (if di-functional) or ranging from 45 to 110 cPs at 25 deg C (if tri functional), have (meth)acrylate equivalent weights (molecular weight/# of functional groups) between 99 and 150 and molecular weights between 226 and 428 gms/mol.
"The acrylated bisphenol-A epoxy based oligomer is commonly referred to as epoxy acrylate or acrylated epoxy. In contrast to epoxy resin, the main characteristic of the epoxy acrylate oligomer is that it contains acrylate functional groups which make them curable by free-radical polymerization. The epoxy acrylate generally contains stabilizers and inhibitors. The epoxy acrylate has a molecular weight of 518 gms/mol and a viscosity of 2400 to 3600 cPs at 65 deg C.
"Certain monomers and oligomers are subject to the scope even if an in scope monomer or oligomer is blended or mixed with one or more other in-scope monomer or oligomer.
"Certain monomers and oligomers in blends or mixtures are also subject to the scope if the blend or mixture matches any of the following descriptions, so long as the blend or mixture contains no less than 20% by weight of in-scope CMOs:
(1) Blends with out-of-scope monomers, epoxy acrylates, or with other acrylate or methacrylate oligomers based on polyester, polyurethane, acrylic, or modified epoxy acrylate structures.
(2) Blends with inert (non-reactive) polymers, or other types of curable oligomers, such as epoxy resins (aromatic or aliphatic glycidyl ethers or esters, epoxidized vegetable oils, cycloaliphatic epoxies, epoxidized polydienes), unsaturated polyesters, maleimide resins, vinyl esters, or allylic resins.
(3) Blends with non-curable solvents.
(4) Blends that additionally contain ingredients, including but not limited to insoluble organic or inorganic fillers, pigments, dyes, rheology modifiers, UV stabilizers, light absorbers, plasticizers, flame retardants, toughening agents or other materials intended to affect the properties of a final cured article.
"The scope includes merchandise matching the above description that has been processed in a third country, including by commingling, diluting, introducing, or removing ingredients, 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 CMOs that are commingled, mixed or blended with in-scope product from sources not subject to these investigations.
"Only the subject component(s) of such blends, mixtures or commingled products described above is covered by the scope of these investigations. Subject merchandise contained in a blended, mixed or commingled product described above will not have undergone a chemical reaction as a result of being blended, mixed or commingled.
"Notwithstanding the above, specifically excluded from the scope are downstream products, including but not limited to, inks, coatings and overprint varnishes. For purposes of this exclusion, the downstream product requires only the application of energy to be cured, e.g. inks or varnish applied to packaging, coatings applied to wood flooring, etc. The energy source required to cure the downstream product to its substrate can be thermal, ultraviolet radiation, visible light, electron beam radiation, or infrared radiation.
"Also excluded from the scope of this investigation are all products covered by the scope of the antidumping and countervailing duty proceedings on Certain Epoxy Resins from the Republic of Korea and Taiwan. See Certain Epoxy Resins From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Negative Critical Circumstances Determination, Postponement of Final Determination, and Extension of Provisional Measures, 89 FR 89605 (November 13, 2024); see also Certain Epoxy Resins From the Republic of Korea: Amended Preliminary Affirmative Determination of Less-Than-Fair-Value Investigation, 89 FR 100972 (December 13, 2024); Certain Epoxy Resins From Taiwan: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures, 89 FR 89591 (November 13, 2024); Certain Epoxy Resins From the Republic of Korea: Preliminary Negative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 89 FR 74912 (September 13, 2024); and Certain Epoxy Resins From Taiwan: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 89 FR 74896 (September 13, 2024).
"This merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2916.12.5050, 2916.14.2050, 3824.99.2900, 3907.29.0000 and 3907.30.0000. Subject merchandise may also be entered under subheadings 2916.12.1000, 3824.99.9397, 3909.50.5000, and 3909.99.5050. The HTSUS subheadings and CAS registry numbers are provided for convenience and customs purposes only; the written description of the scope is dispositive."
ITC and Commerce to Initiate Investigation
The Commerce Department and the 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. The ITC has initiated an investigation with a preliminary determination expected by May 12.