Domestic Industry Asks for AD and CV Duties on Swimming Pool Chlorine from Japan and China
Two U.S. manufacturers asked for antidumping duties against chlorinated isocyanurates from Japan, and countervailing duties on chlorinated isocyanurates from China, in petitions filed Aug. 29 with the Commerce Department and International Trade Commission. Clearon Corp. and Occidental Chemical said dumped and illegally-subsidized imports of the pool cleaning chemical from the two countries are undercutting their prices and hurting industry profits. CV duties against Chinese imports would come on top of an existing AD duty order issued in 2005.
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According to the petition, chlorinated isosyanurates from Japan and China have been selling well below prices charged by U.S. producers since early 2010. Domestic producers have been forced to cut prices, which has caused a drop in profits. As imports increased, domestic industry profits fell from 15% of sales in 2010 to a loss of 5% of sales in 2012. Manufacturers were forced to reduce their domestic workforces by 10 percent between 2011 and 2012, the petition said. Given a surge in imports during the first half of 2013, as well as a “sharp decline” in domestic shipments and revenues, 2013 will be even worse for U.S. manufacturers, it said.
AD duties were imposed on Japanese chlorinated isocyanurates in 1984, but subsequently were revoked in 1995. AD duties have been in place on chlorinated isocyanurates from China since 2005.
Proposed Scope
The petition proposed that Commerce and the ITC define the scope of the investigation as follows:
“The products covered by these orders are chlorinated isocyanurates. Chlorinated isocyanurates are derivatives of cyanuric acid, described as chlorinated s-triazine triones. There are three primary chemical compositions of chlorinated isocyanurates: (1) trichloroisocyanuric acid (“TCCA”) (Cl3(NCO)3), (2) sodium dichloroisocyanurate (dihydrate) (NaCl2(NCO)3 X 2H2O), and (3) sodium dichloroisocyanurate (anhydrous) (NaCl2(NCO)3). Chlorinated isocyanurates are available in powder, granular, solid (e.g., tablet or stick) and liquid forms.
“Chlorinated isocyanurates are currently classifiable under subheadings 2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.99.9500 of the Harmonized Tariff Schedule of the United States (‘‘HTSUS’’). The tariff classification 2933.69.6015 covers sodium dichloroisocyanurates (anhydrous and dihydrate forms) and trichloroisocyanuric acid. The tariff classifications 2933.69.6021 and 2933.69.6050 represent basket categories that include chlorinated isocyanurates and other compounds including an unfused triazine ring. The tariff classification 3808.99.9500, HTSUS covers disinfectants and similar products. The HTSUS subheadings are provided for convenience and customs purposes. The written description of the scope of the orders is dispositive.”
The petition says Clearon and Occidental Chemical aren’t requesting AD or CV duties on imports of cyanuric acid (HOCN)3, an intermediate raw material. But the petition does say the duties should apply to chlorinated isocyanurates from Japan and China that are “packaged, tableted, blended with additives, or otherwise further processed” in the country of origin or in a third country prior to importation into the U.S. The further processing is just repackaging of imported chlorinated isocyanurates for retail sale, the petition said.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting 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, Commerce will initiate an antidumping duty investigation on chlorinated isocyanurates from Japan, and a countervailing duty investigation on chlorinated isocyanurates from China. According to the petition, Clearon and Occidental Chemical represent the majority of U.S. production. Comments are due by about Sept. 18.
Email ITTNews@warren-news.com for a copy of the petition.