Petition Summary: Certain Epoxy Resins from China, India, South Korea, Taiwan, and Thailand

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On April 2, 2024, U.S. Epoxy Resin Producers Ad Hoc Coalition (hereinafter the “Coalition,” or “Petitioner”), filed a petition for the imposition of antidumping and countervailing duties on U.S. imports of certain epoxy resins from China, India, South Korea, Taiwan, and Thailand.

SCOPE OF THE INVESTIGATION

The following language describes the imported merchandise from China, India, South Korea, Taiwan, and Thailand that is within the scope of this Petition:

The merchandise subject to these petitions are epoxy resins, also known as epoxide resins or polyepoxides, which are polymers or prepolymers containing epoxy groups. Epoxy resins range in physical form from low viscosity liquids to solids and are used in a wide range of applications such as coatings, paints, adhesives, composite materials, wind blade systems, insulating materials, civil engineering materials, and electronics. All epoxy resins are covered by the scope of these petitions irrespective of physical form, viscosity, grade, purity, molecular weight, or molecular structure and regardless of packaging.

Epoxy resins may contain modifiers or additives, such as hardeners, curatives, colorants, pigments, diluents, solvents, thickeners, fillers, plasticizers, softeners, flame retardants, toughening agents, catalysts, Bisphenol F, and ultraviolet light inhibitors, so long as the modifier or additive has not chemically reacted so as to cure the epoxy resin or convert it into a different product no longer containing epoxy groups. Such epoxy resins with modifiers or additives are included in the scope where the epoxy resin component comprises at least 30 percent of the total weight of the product. The scope also includes blends of epoxy resins with different types of epoxy resins, with or without the inclusion of modifiers and additives, so long as the combined epoxy resin component comprises at least 30 percent of the total weight of the blend.

Epoxy resins are characterized by the presence of reactive epoxy groups that allow them to be readily cross-linked at the time of use. Epoxy resins may be reacted (cross-linked) either with themselves or with a wide range of co-reactants, often referred to as hardeners, curatives, or curing agents. The cross-linking reaction is commonly referred to as curing. The epoxy resins and blends thereof covered by this scope have not been cured.

Epoxy resins that enter as part of a system or kit with separately packaged coreactants, such as hardeners or curing agents, are within the scope. For such entries, both the epoxy resin and the co-reactant are covered by the scope of these petitions when entered together.

The scope includes merchandise matching the above description that has been processed in a third country, including by commingling, diluting, introducing, or removing modifiers or additives, or performing any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the subject country.

The scope also includes epoxy resin that is commingled with epoxy resin from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of this investigations.

Excluded from the scope are phenoxy resins, which are polymers weighing more than 11,000 Daltons and containing no epoxy groups other than at the terminal ends of the molecule. Phenoxy resins’ Melt Flow Index (“MFI”) at 200°C (392°F) range from 4 to 70 grams per 10 min and its Glass-Transition Temperatures (“Tg”) range from 80 to 100°C (176 to 212°F).

Excluded from the scope are certain paint and coating products, which are blends, mixtures, or other formulations of epoxy resin, curing agent, and pigment, in any form, packaged in one or more containers, wherein (1) the pigment represents a minimum of 10 percent of the total weight of the product, (2) the epoxy resin represents a maximum of 80 percent of the total weight of the product, and (3) the curing agent represents 5 to 40 percent of the total weight of the product.

Excluded from the scope are preimpregnated fabrics or fibers, often referred to as “pre-pregs,” which are composite materials consisting of fabrics or fibers (typically carbon or glass) impregnated with epoxy resin.

This merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 3907.30.0000. Subject merchandise may also be entered under subheadings 3907.29.0000, 3824.99.9397, 3214.10.0020, 2910.90.91, 2910.90.9000, 2910.90.2000, and 1518.00.4000. The HTSUS subheadings are provided for convenience and customs purposes only; the written description of the scope is dispositive.

PETITIONERS

Olin Corporation

190 Carondelet Plaza # 1530

Clayton, MO 63105

Phone: (314) 480-1494

Fax: N/A

Contact Name and Title: J. Matthew Martin, VP & General Counsel – Strategic

Partnerships & Initiatives

Contact Email: jmmartin@olin.com

Website: https://olin.com/

Westlake Corporation

2801 Post Oak Boulevard #600

Houston, TX 77056

Phone: (614) 519-7866

Fax: N/A

Contact Name and Title: Aaron VanderKaay, Senior Counsel

Contact Email: avanderkaay@westlake.com

Website: https://westlake.com/

COUNSEL FOR PETITIONERS

King & Spaulding LLP

1700 Pennsylvania Avenue, N.W.

Washington, D.C. 20006

202-737-0500

NAMED PRODUCERS/EXPORTERS

For a list of foreign producers/exporters alleged by Petitioners, please see Attachment I.

NAMED IMPORTERS

For a list of importers alleged by the Petitioner, please see Attachment II.

ESTIMATED SCHEDULE

Event Earliest Date
Petition Filed April 2, 2024
DOC Initiation April 22, 2024
   
ITC Preliminary Investigation:  
Questionnaires Due April 16, 2024
Request to appear at hearing                                      April 21, 2024
Hearing April 23, 2024
Briefs April 28, 2024
ITC Vote May 17, 2024
   
DOC Investigation Schedule:  
DOC Preliminary Antidumping Determination September 9, 2024
DOC Final Antidumping Determination November 23, 2024
DOC Preliminary Countervailing Determination June 26, 2024
DOC Final Countervailing Determination September 9, 2024
   
ITC Final Investigation:  
ITC Final AD Determination                  January 7, 2025
ITC Final CVD Determination               October 24, 2024

ALLEGED DUMPING MARGINS

China:              264.87% – 351.97%   

India:               11.43% – 17.50%

South Korea:   30.01% – 43.09%

Taiwan:           87.19% – 136.02%

Thailand:         163.94% – 205.63%

ALLEGED COUNTERVAILING DUTY MARGINS

Above de minimis

ALLEGED SUBSIDIES

For a list of alleged subsidies the Petitioner, please see Attachment III.

IMPORTS OF SUBJECT MERCHANDISE

  2018 2019 2020 2021 2022 2023
China            
Quantity (Pounds) 6,864,428 2,097,992 3,886,529 8,422,943 6,325,121 4,084,046
CIF Value (US $) 9,414,372 4,074,545 5,746,419 18,155,280 13,115,539 6,953,117
Value Per Pound 1.37 1.94 1.48 2.16 2.07 1.70
India            
Quantity (Pounds) 2,735,748 703,272 776,372 1,989,235 4,481,096 4,720,313
CIF Value (US $) 4,849,828 2,114,678 1,131,378 5,171,955 12,684,139 8,129,122
Value Per Pound 1.77 3.01 1.46 2.60 2.83 1.72
South Korea            
Quantity (Pounds) 96,874,679 104,444,413 83,551,254 149,812,303 183,972,047 124,718,706
CIF Value (US $) 138,053,639 137,765,420 96,932,465 353,926,868 520,600,797 217,069,374
Value Per Pound 1.43 1.32 1.16 2.36 2.83 1.74
Taiwan            
Quantity (Pounds) 27,453,824 25,383,502 16,786,259 16,525,474 32,454,688 40,026,645
CIF Value (US $) 39,117,893 31,924,176 19,497,740 36,874,253 71,498,380 56,786,479
Value Per Pound 1.42 1.26 14.16 2.23 2.20 1.42
Thailand            
Quantity (Pounds) 30,278,596 26,233,935 18,134,281 12,354,755 10,480,613 12,718,384
CIF Value (US $) 41,323,601 32,320,042 20,574,231 26,200,848 27,758,173 21,731,991
Value Per Pound 1.36 1.23 1.13 2.12 2.65 1.71

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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