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September 29, 2017

New Antidumping and Countervailing Duty Petitions on PTFE Resin from China and India

By Douglas J. Heffner and Richard P. Ferrin

The Chemours Company FC LLC, on September 28, 2017, filed antidumping (AD) petitions on certain polytetrafluoroethylene (PTFE) resin from China and India, and a countervailing duty (CVD) petition on PTFE resin from India.  PTFE is commonly known as Teflon™, although every producer of PTFE resin has its own specific trade name.

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of PTFE resin.

Scope

The product covered by the requested antidumping and countervailing duty orders is polytetrafluoroethylene (PTFE) resin, including by not limited to whether granular, dispersion, or coagulated dispersion (also known as fine powder). PTFE is covered by the scope of this investigation whether filled or unfilled, whether or not modified, and whether or not containing co-polymer additives, pigments, or other materials. Also included is PTFE wet raw polymer. The chemical formula for PTFE is C2F4, and the Chemical Abstracts Service Registry number is 9002-84-0.

PTFE further processed into micropowder, having particle size ranging from 1 to 25 microns, is excluded from the scope of this investigation.

PTFE is classified in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 3904.61.0010 and 3904.61.0090. Subject merchandise may also be classified under subheading 3904.69, HTSUS. Although the HTSUS subheadings and CAS Numbers are provided for convenience and Customs purposes, the written description of the scope is dispositive.

Alleged Dumping Margins

The petitioners allege that the following dumping margins exist:

  • China: 23.4 percent to 408.9 percent
  • India: 15.8 percent to 128.1 percent

Estimated Schedule of Investigations

  • September 28, 2017 – Petition is filed
  • October 18, 2017 – DOC initiates investigation
  • October 19, 2017 – ITC staff conference (estimated)
  • November 13, 2017 – Deadline for ITC preliminary injury determination
  • December 22, 2017 – Deadline for DOC preliminary CVD determination, if deadline is not postponed
  • February 26, 2018 – Deadline for DOC preliminary CVD determination, if deadline is fully postponed
  • March 7, 2018 – Deadline for DOC preliminary AD determinations, if deadlines are not postponed
  • April 26, 2018– Deadline for DOC preliminary AD determinations, if deadlines are fully postponed
  • September 10, 2018 – Deadline for DOC final AD determinations, if both preliminary and final AD determination deadlines are fully postponed

For further information, contact the authors below, or any other member of the Customs and International Trade Team.

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