Epoxy Resin: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping duty investigations on epoxy resins from China, India, South Korea, Taiwan and Thailand (A-570-166, A-533-926, A-580-919, A-583-876, A-549-850), as well as its countervailing duty investigations on epoxy resins from China, India, South Korea and Taiwan (C-570-167, C-533-927, C-580-920, C-583-877). The CVD investigations cover entries for the calendar year 2023. The AD investigations on India, South Korea, Taiwan and Thailand cover entries April 1, 2023, through March 31, 2024, and the AD investigation on China covers entries Oct. 1, 2023, through March 31, 2024.
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The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized epoxy resins are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due May 20, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, due in June for CVD and September for AD, it will set AD and/or CVD cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CVD order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CVD on importers and potentially change AD/CVD cash deposit rates.
AD/CVD Respondent Selection
For its AD investigation on Thailand, Commerce has identified the only producer or exporter as Aditya Birla Chemicals. The agency intends to select that company as only the respondent to its investigation on Thailand. For its AD investigations on India, South Korea and Taiwan, as well as its CVD investigations on China, India, South Korea and Taiwan, Commerce said it will pick respondents to its AD/CVD investigations based on CBP import data. Comments on respondent selections in the CVD investigations and the AD investigations on India, South Korea, Taiwan and Thailand are due three business days after Commerce's AD initiation notice is published, putting the deadline at May 2 at the earliest.
For its AD investigation on China, Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives. Exporters that don't get a quantity and value questionnaire can submit one using the forms available on Commerce's website. Responses are due by May 7.
Companies subject to the AD investigation on China also will have to submit a separate rate application to avoid getting the high China- or Vietnam-wide rate. Separate rate applications will be due 30 days from the publication date of Commerce's AD initiation notice.
Scope of the AD/CVD Investigations
"The merchandise subject to these investigations are fully or partially uncured epoxy resins, also known as epoxide resins, polyepoxides, oxirane resins, ethoxyline resins, diglycidyl ether of bisphenol, (chloromethyl)oxirane, or aromatic diglycidyl, which are polymers or prepolymers containing epoxy groups (i.e., three-membered ring structures comprised of two carbon atoms and one oxygen atom). Epoxy resins range in physical form from low viscosity liquids to solids. All epoxy resins are covered by the scope of these investigations irrespective of physical form, viscosity, grade, purity, molecular weight, or molecular structure, and packaging.
"Epoxy resins may contain modifiers or additives, such as hardeners, curatives, colorants, pigments, diluents, solvents, thickeners, fillers, plasticizers, softeners, flame retardants, toughening agents, catalysts, Bisphenol F, and ultraviolet light inhibitors, so long as the modifier or additive has not chemically reacted so as to cure the epoxy resin or convert it into a different product no longer containing epoxy groups. Such epoxy resins with modifiers or additives are included in the scope where the epoxy resin component comprises no less than 30 percent of the total weight of the product. The scope also includes blends of epoxy resins with different types of epoxy resins, with or without the inclusion of modifiers and additives, so long as the combined epoxy resin component comprises at least 30 percent of the total weight of the blend.
"Epoxy resins that enter as part of a system or kit with separately packaged co-reactants, such as hardeners or curing agents, are within the scope. The scope does not include any separately packaged co-reactants that would not fall within the scope if entered on their own.
"The scope includes merchandise matching the above description that has been processed in a third country, including by commingling, diluting, introducing, or removing modifiers or 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 epoxy resin that is commingled or blended with epoxy resin from sources not subject to these investigations. Only the subject component of such commingled products is covered by the scope of these investigations.
"Excluded from the scope are phenoxy resins, which are polymers with a weight greater than 11,000 Daltons, a Melt Flow Index (MFI) at 200°C (392°F) no less than 4 grams and no greater than 70 grams per 10 min, Glass-Transition Temperatures (Tg) no less than 80°C (176°F) and no greater than 100°C (212°F), and which contain no epoxy groups other than at the terminal ends of the molecule.
"Excluded from the scope are certain paint and coating products, which are blends, mixtures, or other formulations of epoxy resin, curing agent, and pigment, in any form, packaged in one or more containers, wherein (1) the pigment represents a minimum of 10 percent of the total weight of the product, (2) the epoxy resin represents a maximum of 80 percent of the total weight of the product, and (3) the curing agent represents 5 to 40 percent of the total weight of the product.
"Excluded from the scope are preimpregnated fabrics or fibers, often referred to as “pre-pregs,” which are composite materials consisting of fabrics or fibers (typically carbon or glass) impregnated with epoxy resin.
"This merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 3907.30.0000. Subject merchandise may also be entered under subheadings 3907.29.0000, 3824.99.9397, 3214.10.0020, 2910.90.9100, 2910.90.9000, 2910.90.2000, and 1518.00.4000. The HTSUS subheadings are provided for convenience and customs purposes only; the written description of the scope is dispositive."
Comments on the scope of these investigations are due by 5 p.m. EDT May 13.
Investigations Timetable
| Event | AD Duty | CV Duty |
|---|---|---|
| Petitions filed | 04/03/24 | 04/03/24 |
| DOC initiation date | 04/23/24 | 04/23/24 |
| ITC prelim determinations | 05/20/24 | 05/20/24 |
| DOC prelim determinations | 09/10/24 | 06/27/24 |
| DOC final determinations | 11/25/24 | 09/10/24 |
| ITC final determinations | 01/09/25 | 10/25/24 |
| Issuance of orders | 01/16/25 | 11/01/24 |
These deadlines may be, and usually are, extended. The Commerce Department fact sheet on the initiation of these investigations is (here). See 2404100033 for a summary of the petition requesting these investigations.