Kumho Petrochemical sues U.S. over ESBR duties

NEW YORK—Kumho Petrochemical Co. Ltd. has filed a lawsuit in the U.S. Court of International Trade, seeking a judicial review of the U.S. International Trade Commission's decision to levy antidumping duties against emulsion styrene-butadiene rubber imports from South Korea.

The ITC voted 2-2 on Aug. 3 to make a final determination that ESBR imports from South Korea, Poland, Mexico and Brazil were causing material injury to U.S. ESBR manufacturers through selling their products in the U.S. at less than fair value.

Within the ITC, a tie vote constitutes an affirmative decision.

On July 19, the U.S. Department of Commerce levied antidumping duty rates against ESBR imports from all four countries. In the case of South Korea, Commerce set duty rates of 44.3 percent against Kumho and another South Korean ESBR producer, Daewoo International Corp.

The agency set a duty rate of 9.66 percent for a third South Korean firm, LG Chem. Ltd., and also set 9.66 percent as the general rate for all other South Korean ESBR producers.

The ITC erred on several points in finding that Kumho's ESBR exports caused material injury to the U.S. industry, Kumho argued in its Nov. 11 complaint.

"The commission erred in concluding the subject import were 'significant,' " Kumho said. "Specifically, the commission ignored record evidence that U.S. purchasers bought the subject imports for non-price reasons, including, inter alia, to ensure reliability of supply, availability of supply, and quality of supply."

Toward the end of the period of investigation, ESBR imports declined, outpacing the decrease in U.S. consumption, according to Kumho.

"Because imports were drawn into the market by lack of available and reliable supply, and then receded as the domestic industry stabilized, the commission's conclusion that imports were significant is unsupported by substantial evidence and was otherwise not in accordance with law," it said.

Lion Elastomer L.L.C. and the now-bankrupt East West Copolymer L.L.C. petitioned the ITC in July 2016 for relief from ESBR imports.