WASHINGTON—Emulsion styrene-butadiene rubber importers from Brazil, Mexico, South Korea and Poland are dumping their products in the U.S. market at margins ranging from 9.66 to 44.3 percent, the U.S. Department of Commerce has ruled in its final determination.
Commerce's July 11 ruling affirmed the agency's agreement with the July 2016 petition from Lion Elastomers L.L.C. and the now-bankrupt East West Copolymer L.L.C. Lion and East West sought protection from ESBR imports they claimed were selling in the U.S. at less than fair value.
With this determination, Commerce will now instruct Customs and Border Protection to collect cash deposits on these imports, based on the final antidumping rates.
Matthew T. McGrath, attorney with the Washington firm of Barnes, Richardson & Colburn L.L.P. who represented Lion Elastomers at a June 29 hearing before the International Trade Commission, said his clients were pleased with the Commerce determination.
"One of the manufacturers has gone out of business, which shows the urgency of relief," McGrath said. "So we look forward to an affirmative determination from the ITC in August."
William C. Sjoberg, attorney with the Washington firm of Adduci, Mastriani & Schaumberg L.L.P. who represented the importers at the hearing, declined comment.
In its determination, Commerce found that Arlanxeo Brasil S.A., the sole mandatory respondent from Brazil, dumped its ESBR in the U.S. at a margin of 19.61 percent. The agency assessed the same rate to all other Brazilian ESBR producers.
In the South Korean investigation, only one of the mandatory respondents, LG Chem Ltd., participated in the investigation, Commerce said. It assessed LG an antidumping rate of 9.66 percent, the same general rate it gave to other South Korean ESBR producers.
Two other mandatory respondents, Daewoo International Corp. and Kumho Petrochemical Co. Ltd., did not participate in the investigation and were assessed antidumping duties of 44.3 percent, Commerce said.
In the Polish investigation, the sole mandatory respondent, Synthos Dwory, received a dumping margin of 25.43 percent, the same rate found for all Polish ESBR producers, Commerce said.
In the Mexican investigation, the sole mandatory respondent, Industrias Negromex S.A. de C.V.—Planta Altamira, received a dumping margin of 19.52 percent, the same as all Mexican ESBR producers, the agency said.
Lion and East West alleged in their petition that critical circumstances existed in the case of ESBR imports from Brazil and South Korea, meaning that Customs and Border Protection should impose provisional duties retroactively, effective 90 days before the publication of the original February preliminary determination in the Federal Register.
Commerce found that critical circumstances exist only in the case of South Korea, and said it would order CBP to impose provisional measures on Daewoo and Kumho.
According to a Commerce fact sheet, the ITC should make its final determination Aug. 24.
Import statistics from Commerce state that Brazil exported 21,274 metric tons of ESBR worth $40.9 million to the U.S. in 2014. It exported 15,090 tons worth $21.1 million in 2015 and 24,590 tons worth $29.8 million in 2016.
South Korea exported 229 metric tons of ESBR worth $453,000 in 2014, 436 tons worth $621,000 in 2015 and 337 tons worth $503,000 in 2016, according to the agency.
Mexican ESBR producers exported 19,873 tons worth $44.7 million in 2014, 17,013 tons worth $25.5 million in 2015 and 17,099 tons worth $23.1 million in 2016, Commerce said.
Polish ESBR producers exported 2,539 tons worth $5.1 million in 2014, 2,352 tons worth $3.4 million in 2015 and 2,427 tons worth $3.4 million in 2016, Commerce said.