At a Glance
- The petitions were filed by Cornerstone Chemical Company.
- Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of melamine.
- The U.S. Department of Commerce is expected to begin investigations on March 5, 2024.
On February 14, 2024, antidumping duty (AD) petitions were filed on melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago, and countervailing duty (CVD) petitions were filed on melamine from Germany, India, the Netherlands, Qatar, and Trinidad and Tobago. The petitions were filed by Cornerstone Chemical Company (Petitioner).
The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidization is occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of melamine.
Scope
The merchandise subject to these investigations is melamine (Chemical Abstracts Service (“CAS”) registry number 108–78–01, molecular formula C3 H6 N6). Melamine is a crystalline powder or granule typically (but not exclusively) used to manufacture melamine formaldehyde resins. All melamine is covered by the scope of these orders irrespective of purity, particle size, or physical form. Melamine that has been blended with other products is included within this scope when such blends include constituent parts that have been intermingled, but that have not been chemically reacted with each other to produce a different product. For such blends, only the melamine component of the mixture is covered by the scope of these orders. Melamine that is otherwise subject to these orders is not excluded when commingled with melamine from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of these orders.
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 and CAS registry number are provided for convenience and customs purposes, the written description of the scope is dispositive.
Estimated Dumping Margins
The Petitioners allege the following dumping margins exist:
Germany — 5.47% to 139.66%
India — 378.01% to 619.24%
Japan — 103.66% to 123.81%
Netherlands — 33.40% to 75.18%
Qatar — 191.63% to 622.05%
Trinidad and Tobago – 230.30% to 457.76%
The Petitioner also alleges significant subsidies with respect to Germany, India, Netherlands, Qatar, and Trinidad and Tobago, although the petitions do not quantify the alleged net subsidy margins.
Estimated Schedule of Investigations
The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):
