Insights

Trade Alert: Chemical Company Files Antidumping Duty Petition on Dioctyl Terephthalate from Malaysia, Poland, Taiwan, and Turkey

Date: 03/28/2024

On March 26, 2024, the Eastman Chemical Company (“Petitioner”) submitted a petition (“Petition”) to the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“ITC” or “Commission”) for the imposition of antidumping duties (“ADD”) on dioctyl terephthalate (“DOTP”) from Malaysia, Poland, Taiwan, and Turkey. DOTP is a plasticizer used in a variety of applications, including flooring, PVC compounds, wall coverings, toys, and many others. The Petition asserts that imports of DOTP from the specified countries are being “dumped” (i.e., sold for less than fair value) in the United States and injuring U.S. domestic industry. To offset the alleged dumping, Petitioner requests that the U.S. impose ADD on products within the scope of the Petition.

U.S. industries may petition the U.S. government for relief from imports that are dumped in the United States. Commerce and ITC play distinct roles in ADD investigations. Commerce determines whether the dumping exists and, if so, determines the margin of dumping. The ITC, in contrast, determines whether there is “material injury,” or the threat of material injury, to U.S. domestic industry because of the dumped imports. ADD may be assessed on the subject imports as the result of an ADD investigation if (1) the ITC makes an affirmative determination of injury, and (2) Commerce makes an affirmative determination of dumping.

Proposed Scope of the Investigation

Per the Petition, the proposed scope of the investigation is as follows:

DOTP, regardless of form. DOTP that has been blended with other products is included within this scope when such blends include constituent parts that have not been chemically reacted with each other to produce a different product. For such blends, only the DOTP component of the mixture is covered by the scope of these investigations.

DOTP that is otherwise subject to these investigations is not excluded when commingled with DOTP from sources not subject to these investigations. Commingled refers to the mixing of subject and non-subject DOTP. Only the subject component of such commingled products is covered by the scope of these investigations.

DOTP has the general chemical formulation C6H4(C8H17 COO)2 and a chemical name of "bis (2-ethylhexyl) terephthalate" and has a Chemical Abstract Service (CAS) registry number of 6422–86–2. Regardless of the label, all DOTP is covered by these investigations.

Subject merchandise is currently classified under subheading 2917.39.2000 of the Harmonized Tariff Schedule of the United States (HTSUS). Subject merchandise may also enter under subheadings 2917.39.7000 or 3812.20.1000 of the HTSUS. While the CAS registry number and HTSUS classification are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.

Alleged Dumping Margin

The Petition alleges that DOTP is being dumped at the following estimated margins by the countries subject to the Petition:

  • Malaysia: 59.33%

  • Poland: 60.10%

  • Taiwan: 83.70% - 136.20%

  • Turkey: 34.83% - 70.97%

Important (Estimated) Dates & Deadlines

  • March 26, 2024 – Petition filed

  • April 15, 2024 – Commerce initiates investigations

  • April 16, 2024 – Date of ITC staff conference

  • April 19, 2024 – Deadline for written submissions to ITC

  • May 10, 2024 – Deadline for ITC preliminary determination in ADD investigation

  • September 2, 2024 – Deadline for Commerce preliminary determination (may be extended)

  • November 16, 2024 – Deadline for Commerce final determination,

  • December 31, 2024 – Deadline for ITC Final Determination, if Commerce deadline is not extended

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Businesses, including U.S. importers and foreign producers and exporters, that may be affected by this investigation should stay abreast of the latest developments and take note of the key dates and deadlines listed above.

Due to the complexities involved in ADD investigations, expert legal guidance is often indispensable. If you have questions regarding how these investigations could affect your business, whether your products fall within the proposed scope, or the potential implications of preliminary or final determinations, please feel free to contact the attorneys at Torres Trade Law.

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