New Trade Case on Imports of Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago

New U.S. antidumping duty (“AD”) petitions were filed on February 14, 2024, by Cornerstone Chemical Company (“Petitioner”) against imports of melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago. The petitions also seek the imposition of countervailing duties (“CVD”) on imports of melamine from Germany, India, Qatar, and Trinidad and Tobago.

The merchandise covered by these petitions consists of 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, the major end uses of which include surface coatings, laminates, molding compounds, paper treatment, adhesives, and textile-treatment applications in the automotive, appliance, dinnerware, furniture, fabric, and wood paneling industries. Typical laminate products include kitchen and bathroom countertops, tabletops, doors, and cabinets. All melamine is covered by the scope of these orders irrespective of purity, particle size, or physical form. Please see below for the full text of the proposed scope for the investigations.

The Department of Commerce (“DOC”) and the U.S. International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring or threatening to injure the U.S. industry. If the ITC finds that this standard is met, the cases will move to the DOC, which will calculate the preliminary AD and CVD duty margins.

The DOC’s preliminary determinations are currently expected by May 9, 2024 (CVD) and July 23, 2024 (AD). On the date of publication of DOC’s preliminary determinations, importers will be required to deposit the calculated duties upon the products’ entry into the U.S. market.

Importers should also be aware that entries may be subject to AD/CVD cash deposits 90 days before the DOC preliminary determinations if the DOC issues a finding of “critical circumstances,” meaning that imports increased by at least 15 percent following the filing of the petition compared to a similar period (typically three months) before the petition.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available. A schedule of approximate key dates is attached below.

The following are key facts about this trade case:

Petitioner:  Cornerstone Chemical Company

Foreign Producers/Exporters and US Importers:  Please contact us for a listing of individual importers and exporters named in the petition.

AD/CVD margins:  Petitioner alleged the following AD/CVD margins:

  • Germany: dumping margins from 5% to 140%, ad valorem, and countervailing duty margins above de minimis;
  • India: dumping margins from 378% to 619%, ad valorem, and countervailing duty margins above de minimis;
  • Japan: dumping margins from 104% to 124%, ad valorem;
  • Netherlands: dumping margins from 33% to 75%, ad valorem;
  • Qatar: dumping margins from 191% to 622%, ad valorem, and countervailing duty margins above de minimis; and
  • Trinidad and Tobago: dumping margins from 230% to 458%, ad valorem, countervailing duty margins above de minimis.

Merchandise covered by the scope of the case:

The proposed scope of this investigation describes the subject merchandise as:

The merchandise subject to this investigation 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.

Approximate Key Dates*

Antidumping Duty Investigation

Event No. of Days Date of Action
Petition Filed 0 2/14/2024
DOC Initiation Date 20 3/5/2024
     
  ITC Preliminary Investigations**
Questionnaires Due 14 2/28/2024
Request to appear at Conference 18 3/4/2024
Conference 21 3/6/2024
Post-Conference Briefs 26 3/11/2024
ITC Vote 43 3/28/2024
ITC Preliminary Determination 45 4/1/2024
     
  DOC Investigations
DOC Preliminary AD Determination 160 7/23/2024
DOC Final AD Determination 235 10/7/2024
     
  ITC Final Investigations
ITC Final AD Determination 280 11/20/2024
     
  DOC Final Investigations
     
DOC AD Publication of Order 287 11/27/2024
     
Countervailing Duty Investigation
Event No. of Days Date of Action
Petition Filed 0 2/14/2024
DOC Initiation Date 20 3/5/2024
ITC Determination of Reasonable Indication of Injury 45 4/1/2024
DOC Preliminary CVD Determination 85 5/9/2024
Submission of Factual Information to DOC 95 5/20/2024
Request for a DOC Hearing 122 6/17/2024
DOC Final CVD Determination 160 7/23/2024
ITC Final CVD Determination 205 9/6/2024
DOC CVD Publication of Order 212 9/13/2024

* Deadlines are approximate and may change. When a deadline falls on a weekend or Federal holiday, deadlines will be extended to the next business day, as reflected in the above.

** The ITC preliminary dates may change slightly when the ITC publishes its notice of institution in the Federal Register. When the notice is published, parties will have seven days to file an entry of appearance at the ITC and apply for access to confidential information through counsel under Administrative Protective Order.

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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