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Legal Update

Brazilian Competition and Trade Alert - New Antidumping Investigation

9 June 2014
Tauil & Chequer Legal Update

Today it was published in the Brazilian Official Gazette the SECEX Circular No. 27, as of June 6th, 2014, determining the initiation of dumping investigation on the imports from Germany, Belgium, Hungary, Netherlands, Portugal, Spain and South Korea of polymeric MDI, classified under MERCOSUR’s Common Nomenclature Code (NCM) 3909.30.20.

DECOM shall send questionnaires to manufacturers and exporters that were duly selected. Such questionnaires must be answered in up to 30 days. Parties interested in this procedure must qualify and require audiences after 20 days from today, indicating its representatives. Qualified parties may then submit written evidence.

The original investigation was initiated on June 7th, 2011, by the SECEX Circular No. 30, based on a request made on October 20th, 2010 by the company Bayer S.A. The originally investigated countries were USA, Belgium and China. Since there were identified dumping, injury and causal connection between them on the imports from USA and China, the CAMEX Resolution No. 27, of April 25th, 2012, imposed provisional antidumping duty on such imports of polymeric MDI. The investigation was then terminated by the CAMEX Resolution No. 77, as of October 29th, 2012, that imposed definitive antidumping duty for 5 years. The specific rate was applied based on US dollars per ton, according to the producer/exporter and the country, as shown below:

Country

Manufacturer/Exporter

Provisional Antidumping Duty (US$/t)

China

Yantai Wanhua Polyurethanes CO. Ltd.
Bayer Polyurethanes (Shangai) Co. Ltd.
Beijing Keju Chemical Material Co. Ltd.
Nanjing Hongbaoli Co., Ltd.
Ningbo Wanhua Polyurethane Co. Ltd.
Nippon Polyurethane (Ruian) Co. Ltd.
Shangai Lianheng Isocyanate Co. Ltd. (SLIC)  

619.27

Others

1,079.68

EUA

Basf Corporation S.A.

738.2

The Dow Chemical Company

679.38

Huntsman International LLC

418.73

Carboline Company
Chemtura Corporation
Cytec Industries Incorporation
Reichhold Inc.
Sigma – Aldrich Logistik Gmbh

671.26

Others

838.08

 

On April 30th, 2014, Bayer S.A. requested a new investigation on the imports of the same product from Germany, Belgium, Hungary, Netherlands, Portugal and South Korea, and DECOM decided to also analyze Spain.

The petitioner, Brazilian importers, producers/exporters from the investigated countries and their governments were identified as interested parties.

It was considered the period of Jan. 2013 – Dec. 2013 in the verification of dumping practices.

Below you can see the dumping margins on the imports from the investigated countries:
                                                                              

 

Country

Normal value (US$/t)

Export price (US$/t)

Absolute dumping margin (US$/t)

Relative dumping margin (%)

Germany

2,762.68                          

2,280.33

482.35

21

Belgium

2,762.68                          

1,961.16  

801.52

41

Hungary

2,762.68                          

2,314.38

448.30

19

Portugal

2,762.68                          

2,224.27

538.41

24

Netherlands

2,762.68                          

1,919.03

843.65

44

South Korea

3,201.08

2,199.53

1,001.55

46

Spain

2,762.68                          

2,241.23

521.45

23

 

The analysis concluded that there is evidence of dumping on these imports over the investigated period of time, which justifies the initiation of an investigation.

Please find the Portuguese version of the official notice here and let us know if you need further details.

For more information regarding this Legal Update, please contact , or .

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