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Chemical Manufacturer Requests New AD/CV Duties on Melamine From China, Trinidad and Tobago

A chemical manufacturer is requesting new antidumping and countervailing duties on melamine from China (A-570-020/C-570-021) and Trinidad and Tobago (A-274-806/A-274-807). In a petition filed Nov. 12 with the Commerce Department and International Trade Commission, Cornerstone Chemical, which purports itself to be the online U.S. manufacturer of melamine, says it has lost a “substantial volume” of sales and market share, and has been forced to lower prices because of “significant and pervasive” underselling by exporters in China and Trinidad and Tobago. It also says subsidy programs in the two countries have encouraged growth and overcapacity, creating “a significant likelihood” that low-priced imports of melamine from China and Trinidad and Tobago “will continue their rapid penetration of the U.S. market.”

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According to the petition, most melamine consumed in the U.S. is used in the production of melamine resins, especially melamine-formaldehyde (MF) resins. Melamine resins are used in laminates, surface coatings, adhesives, molding compounds, and paper treatment. Laminate products produced using melamine include kitchen and bathroom countertops, table tops, doors and cabinets, said Cornerstone.

Proposed Scope

The petition proposes the following scope for the investigations:

“The merchandise subject to these investigations is melamine in crystal form. Melamine in crystal form is a fine white crystalline powder typically used to manufacture melamine formaldehyde resins.

“The subject merchandise is provided for in subheading 2933.61.0000 of the Harmonized Tariff Schedule of the United States (‘HTSUS’). Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the scope is dispositive."

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 antidumping and countervailing duty investigations on melamine from China and Trinidad and Tobago. Comments are due by Dec. 2.

Email ITTNews@warren-news.com for a copy of the petition.