Saturday, August 1, 2009

China Barium Carbonate export - (Sunset) review AD duty order – Brazil and the United States

by M. Ulric Killion

The photo is from Yuci Jintai Barium Salt Chemical Co., Ltd., (榆次金泰钡盐化工有公司) in Jinzhong City, Shanxi Province. 

Yuci Jintai Barium Salt Chemical Co., Ltd., is one of the largest, if not the largest, professional manufacturer and exporter of Barium Hydroxide and its series of products in Mainland China (我公司是中国无机盐协会常务理事,是全国规模最大的氢氧化钡及盐系列产品生产易企业,氢氧化钡年产量占全国总产量的三分之一. 93年开生产氢氧化钡产品至今,公司重科技、抓管理,生产的"榆贝"牌八水氢氧化钡、粉体一水氢氧化钡、晶体一水氢氧化钡、偏硼酸钡、碳酸钡、硫脲等产品,销美国、日本、欧洲、南非、东南亚、台湾等国家和地区, Yuci Jintai Barium Salt Chemical Co., Ltd.).

In Mainland China, companies such as Yuci Jintai and other producers of barium carbonate are facing a recurring problem with the export of this product.

As a case in point, in the context of China and barium carbonate exports, and seemingly ongoing problems relating to the AD/CVD variety of trade disputes, Brazil's Ministry of Development, Industry and Trade has recently instituted a (sunset) review (that is classified under NCM 2863.60.00) of the AD duty order on Mainland China exports of barium carbonate.

According to the announcement, the review will seek to determine whether revocation of "this order would be likely to lead to continuation or recurrence of material injury to a domestic industry within a reasonably foreseeable time. Imports of subject merchandise are currently subject to an AD duty of US$105.17 per tonne" (Brazil Begins Sunset Review of AD Duty Order on Barium Carbonate, Hong Kong Traders, International Edition, July 17, 2009).

Brazil's announced (sunset) review also serves as a reminder of a similar dispute involving China and the United States. Nowithstanding politics or a political decision, if the facts in the Brazilian case are similar to the US case, especially in the context of a continuing (or recurring) material injury, it is reasonable to anticipate that following a (sunset) review the existing AD duty order will remain in place.

The earlier US case is a factually similar trade dispute. This is because the US case is a dispute instituted on September 2, 2009 that addresses a five-year (sunset) review, which also involves barium carbonate exports from Mainland China.

In January 2009, the U.S. International Trade Commission (ITC) earlier determined that revoking the existing antidumping duty order on barium carbonate from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. The ITC report Barium Carbonate from China (Inv. No. 731-TA-1020 (Review)), USITC Publication 4060, January 2009) sets forth both the views of the ITC and information developed during the review (News Release 09-006, Inv. No. 731-TA-1020 (Review), ITC makes Determination in Five-Year (Sunset) Review Concerning Barium Carbonate from China, January 21, 2009).

All of the Commissioners, which total six, voted in the affirmative. As a consequence of the ITC's affirmative determination, the existing order on imports of barium carbonate from Mainland China would remain in place.

© Protected - All Rights Reserved M. Ulric Killion, 2009.

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