Japanese Resorcinol Tariffs Likely to Be Extended
The Chinese government has decided to lift anti-dumping tariffs only on American companies among the anti-dumping measures on the chemical resorcinol imported from U.S. and Japanese companies.
On the 22nd, the Ministry of Commerce of China announced that it had approved the anti-dumping tariff review application on resorcinol imported from Japanese companies such as Sumitomo Chemical and Mitsui Chemicals.
Resorcinol is a chemical synthetic intermediate and a fine chemical industry raw material mainly used in rubber adhesives and ultraviolet absorbers. It can also be used in the production of wood adhesives, flame retardants, pharmaceuticals, and pesticide intermediates.
Previously, China imposed anti-dumping tariffs of 30.1% on U.S. companies and 40.5% on Japanese companies starting from March 23, 2013, following provisional measures in 2012, claiming that U.S. and Japanese companies sold this product at unfairly low prices causing losses to Chinese industries.
Subsequently, the Ministry of Commerce extended these measures for five years in March 2019, with the original final deadline being this day.
The Ministry explained that Zhejiang Hongsheng Chemical of China, representing the domestic resorcinol industry, applied in January for a review to end the anti-dumping measures against Japanese companies, and the application was deemed appropriate and accepted.
The approval of the anti-dumping termination review by China is analyzed to mean that anti-dumping tariffs on Japanese products are likely to continue.
During the review period, which can last up to one year, the anti-dumping tariffs applied to Japanese resorcinol will remain in place, and if the investigation concludes that dumping concerns persist, the tariff period will be extended.
However, the Ministry added that the anti-dumping tariff measures on U.S.-made resorcinol will be terminated as of the 23rd since the domestic industry did not apply for a review.
Additionally, the Ministry of Commerce announced that among the anti-dumping measures applied to photographic paper from the European Union (EU), the United Kingdom, the United States, and Japan, only tariffs on the United Kingdom will be suspended.
China has imposed anti-dumping tariffs on photographic paper from the EU, the U.S., and Japan since March 2012, and after the United Kingdom left the EU, anti-dumping measures were also applied to the UK.
The currently applied anti-dumping tariff rates are 19.4% to 23.5% for the EU, centered on Fujifilm’s overseas manufacturing subsidiaries, 23.6% to 28.8% for the U.S., and 28.8% for Japan.
The Ministry stated that the domestic company Lucky Film, representing the photographic paper industry, submitted an application for a review to end the anti-dumping measures, which was accepted, and since no application was submitted for UK photographic paper imports, the measures against UK companies will end from the 23rd.
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