ITA preliminarily rules Mexican ESBR producers didn't dump material in U.S.

WASHINGTON—The International Trade Administration preliminarily ruled that producers and exporters of emulsion SBR from Mexico did not sell the material in the U.S. at prices below normal value during a period of review from September 2021 through August 2022.

The preliminary determination by the Department of Commerce's ITA was published Oct. 10 in the Federal Register and was part of a review of an antidumping order made in September 2017 against Mexico, Brazil, Poland and South Korea. The DOC at that time issued an antidumping duty of 19.52 percent against Industrias Negromex S.A. de C.V., along all other Mexican producers of ESBR.

The investigation leading to the 2017 antidumping duties followed a petition filed by Lion Elastomers L.L.C. and East-West Copolymers, the latter of which no longer is in business.

The Commerce Department initiated an administrative review of the order on Nov. 3, 2022, to cover ESBR exporting activity for the 12 months ending Aug. 31, 2022. The ITA selected Negromex as the sole mandatory respondent in the review.

For the preliminary results of the review, the ITA estimated weighted-average dumping margin for the period was 0.0 percent for Negromex. The preliminary ruling also gave the same 0.0 percent dumping margin on the three producers not selected for individual examination: Continental Tires de Mexico S.A. de C.V., Hyundai Glovis Mexico and Pirelli Neumaticos S.A. de C.V.

In addition, the ITA made a preliminary finding that Dynasol Elastomeros S.A. de C.V. made no shipments of ESBR during the period of review.

The ITA preliminary ruling follows a July 10 determination by the U.S. International Trade Commission that revoking the antidumping duty orders on ESBR imports from Mexico—as well as Brazil, Poland and South Korea—likely would lead to continuation or recurrence of material injury within a reasonably foreseeable time.

"We are unpersuaded by Negromex's arguments that its alleged home market focus, capacity limitations and inability to shift production from other products to ESBR indicate that subject imports from Mexico would likely have no discernible adverse impact on the domestic industry after revocation," the ITC said in its report.

Interested parties may submit case briefs no later than 30 days after the Oct. 10 publication of the ITA preliminary ruling. Commerce said it intends to issue final results of its administrative review within 120 days of the publication of the notice.

Upon completion of the review, the DOC will determine and the Customs and Border Patrol assess antidumping duties on all appropriate imports of ESBR. Commerce intends to issue assessment instructions to the CBP no earlier than 41 days after the date of publication of the final results of the review in the Federal Register.

ESBR is used primarily in tire applications as well as in conveyor belts, shoe soles, hose, roller coverings and flooring. Lion Elastomers and Goodyear are the only U.S. producers of the material.