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Acetone: New AD Duty Investigations Deadlines & Scope

The Commerce Department issued a notice in the Federal Register on its recently initiated antidumping duty investigations on acetone from Belgium, South Korea, Saudi Arabia, Singapore, South Africa and Spain (A-423-814, A-580-899, A-517-805, A-559-808, A-791-824, A-469-819).

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The International Trade Commission will conduct concurrent investigations to determine whether imports of dumped and illegally subsidized acetone are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due April 5, the investigations will immediately end. If Commerce finds dumping in the preliminary determinations of these investigations, currently due in July, it will set AD duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue AD duty orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD duties on importers and potentially change AD duty cash deposit rates.

Respondent Selection

Commerce said it will pick respondents to its investigations based on the companies identified in the AD duty petition for each country because there is evidence that these companies are the only producers in each respective country. These companies include one producer in Belgium (INEOS Phenol Belgium NV), two producers in Korea (Kumho P & B Chemicals, Inc. and LG Chem, Ltd.), two producers in Saudi Arabia (Rabigh Refining & Petrochemical Company and Saudi Kayan Petrochemical Company), one producer in Singapore (Mitsui Phenols Singapore Pte Ltd), one producer in South Africa (Sasol Limited), and two producers in Spain (CEPSA Quimica, S.A. and IQOXE). Comments on respondent selection are due March 21.

Scope of the AD/CVD Investigations

The merchandise covered by these investigations is all grades of liquid or aqueous acetone. Acetone is also known under the International Union of Pure and Applied Chemistry (IUPAC) name propan-2-one. In addition to the IUPAC name, acetone is also referred to as ß-ketopropane (or beta-ketopropane), ketone propane, methyl ketone, dimethyl ketone, DMK, dimethyl carbonyl, propanone, 2-propanone, dimethyl formaldehyde, pyroacetic acid, pyroacetic ether, and pyroacetic spirit. Acetone is an isomer of the chemical formula C3H6O, with a specific molecular formula of CH3COCH3 or (CH3)2CO.

The scope includes acetone that is combined or mixed with other products, including, but not limited to, isopropyl alcohol, benzene, diethyl ether, methanol, chloroform, and ethanol, regardless of the quantity or value of the acetone component. For such combined products, only the acetone component is covered by the scope of these investigations. Acetone that has been combined with other products is included within the scope, regardless of whether the combining occurs in third countries. Notwithstanding the foregoing language, an acetone combination or mixture that is transformed through a chemical reaction into another product, such that, for example, the acetone can no longer be separated from the other products through a distillation process (e.g., methyl methacrylate (MMA) or Bisphenol A (BPA)) is excluded from these investigations.

The scope also includes acetone that is commingled with acetone from sources not subject to these investigations, regardless of the quantity or value of the subject acetone component. Only the subject merchandise component of such commingled products is covered by the scope of these investigations. Acetone that has been commingled with acetone from sources not subject to these investigations is included within the scope, regardless of whether the combining occurs in third countries. The acetone component from sources not subject to these investigations may still be subject to other acetone investigations.

The Chemical Abstracts Service (CAS) registry number for acetone is 67-64-1.

The merchandise covered by these investigations is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 2914.11.1000 and 2914.11.5000. Acetone and acetone combinations and mixtures covered by these investigations may also enter under different HTSUS subheadings, such as 2902.20.0000, 2902.70.0000, 2905.12.0050, or 2914.12.0000, however, this list of HTSUS subheadings is non-exhaustive. Although these HTSUS subheadings and CAS registry number are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.

Comments on Scope Due April 1

Participants in the AD/CV duty investigations may submit comments on product coverage under the scope of the investigations. Comments on the scope are due by April 1.

Investigations Timetable

EventAD Duty
Petitions filed02/19/19
DOC initiation date03/11/19
ITC prelim determinations*04/05/19
DOC prelim determinations†07/29/19
DOC final determinations†10/15/19
ITC final determinations‡11/29/19
Issuance of orders+12/06/19

*If the ITC makes a negative determination of injury, the investigations are terminated.

†These deadlines may be extended under the governing statute.

‡This will take place only in the event of Commerce Department final affirmative determinations.

+This will take place only in the event of Commerce and ITC final affirmative determinations.

(See 1902190051 for a summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)

The Commerce Department fact sheet on the initiation of these investigations is (here).

(Federal Register 03/18/19)