Anti-Dumping Duty Imposed on Alkyl Phosphate Esters from China

On April 23, 2024, petitions were submitted for antidumping duties (AD) and countervailing duties (CVD) concerning certain alkyl phosphate esters imported from China. These petitions were filed by ICL-IP America, Inc., a subsidiary of the ICL Group, acting as the Petitioner. Alkyl phosphate esters serve as flame retardants and additives in a diverse array of products.

Understanding the Laws:

Antidumping (AD) Law: This law in the U.S. imposes specific tariffs to counteract imports sold in the country below their “normal value.”

Countervailing (CVD) Law: This law in the U.S. levies special tariffs to counteract imports benefiting from subsidies provided by foreign governments.

For AD/CVD duties to be enforced, the U.S. government must ascertain not only the occurrence of dumping and/or subsidization but also the presence of “material injury” or a potential threat due to these practices.

Importers bear responsibility for any potential AD/CVD duties that are imposed.

Potential Impact:

These ongoing investigations have the potential to influence purchasers by either raising prices or reducing the availability of alkyl phosphate esters in the market.

Alkyl phosphate esters covered in this context are those characterized by side chains exclusively containing two or three carbon atoms, inclusive of chlorinated alkyl chains, with a phosphorus content of no less than 6.5% by weight. These esters exhibit a viscosity falling within the range of 1 to 2000 mPa.s at temperatures between 20 and 25 degrees Celsius.

The category of alkyl phosphate esters encompasses Tris (2-chloroisopropyl) phosphate (TCPP), Tris(1,3-dichloroisopropyl) phosphate (TDCP), and Triethyl Phosphate (TEP). TCPP, also known by various synonyms such as Tris (1-chloro-2-propyl) phosphate, Tris(1-chloropropan-2-yl) phosphate, Tris (monochloroisopropyl) phosphate (TMCP), and Tris(2-chloroisopropyl) phosphate (TCIP), possesses the chemical formula C9H18Cl3O4P and is identified by CAS Nos. 1244733-77-4 and 13674-84-5, with an additional reference being CAS No. 6145-73-9.

TDCP, alternatively recognized as Tris (1,3-dichloroisopropyl) phosphate, Tris (1,3-dichloro-2-propyl) phosphate, Chlorinated tris, tris {2-chloro-1-(chloromethyl ethyl} phosphate, TDCPP, and TDCIPP, bears the chemical formula C9H15Cl6O4P and is associated with CAS No. 13674-87-8.

TEP, also denoted by names like Phosphoric acid triethyl ester, phosphoric ester, flame retardant TEP, Tris(ethyl) phosphate, Triethoxyphosphine oxide, and Ethyl phosphate (neutral), is defined by the chemical formula (C2H5O)3PO and the CAS No. 78-40-0.

Moreover, this inquiry encompasses isomers of the aforementioned products and combinations comprising one or more alkyl phosphate esters where these esters constitute 20% or more of the total blend by weight.

Estimated Dumping Margins

The Petitioners allege dumping margins in the range of 119.52 to 145.43% based on average unit values, or 78.36 to 99.4% based on actual U.S. transaction prices.

The Petitioners also allege significant subsidies, although the petitions do not quantify the alleged net subsidy margin.

Estimated Schedule of Investigations

The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):

April 23  2024         Petitions are filed.

May 13 2024            DOC initiates investigations.

May 14 2024            ITC staff conference (estimated).

June 7 2024             Deadline for ITC preliminary injury determination.

July 17 2024             Deadline for DOC preliminary CVD determination, if deadline is NOT postponed.

Sept 20 2024            Deadline for DOC preliminary CVD determination, if deadline is fully postponed.

Sept 30 2024             Deadline for DOC preliminary AD determination, if deadline is NOT postponed.

Nov 19 2024              Deadline for DOC preliminary AD determination, if deadline is fully postponed.

April 3  2025              Deadline for DOC final AD and CVD determinations, if all deadlines are fully postponed.

May 19  2025            Deadline for ITC final injury determination, if all DOC deadlines are fully postponed.

Source: https://www.faegredrinker.com/en/insights/publications/2024/4/new-antidumping-duty-and-countervailing-duty-petitions-alkyl-phosphate-esters-from-china