Issued by: Ministry of Commerce of the People’s Republic of China
Announcement No. 83, 2012
Date of Issuance: November 23, 2012

In accordance with provisions of the Regulations of the People’s Republic of China on Anti-dumping (hereinafter referred to as the “Anti-dumping Regulations”), the Ministry of Commerce (hereinafter referred to as the “Investigating Authority”), released on March 23, 2012 a formal announcement on its decision to launch an anti-dumping investigation into the imports of resorcinol originated in Japan and the U.S.. The Products under Investigation are listed under tariff No. 29072100 in the Customs Import and Export Tariff of the People’s Republic of China, and the resorcinol salt thereunder is not in the scope of products under investigation.

The Investigating Authority had investigated into the existence of dumping and dumping margin, the existence of injury to China’s domestic resorcinol industry and the extent of such injury, as well as the causality between the dumping and the injury. According to the investigation findings and Article 24 of the Anti-dumping Regulations, the Investigating Authority made a preliminary ruling (please refer to the Annex), and hereby announces the following:

I. Preliminary Ruling
The Investigating Authority made a preliminary ruling that during the investigation period of this Case, there was dumping of the imports of resorcinol originated in Japan and the U.S. and China’s resorcinol industry was substantially injured, and there was causality between the dumping and the injury.

II. Levy of Deposit
In accordance with Articles 28 and 29 of the Anti-dumping Regulations, the Investigating Authority decides to take provisional anti-dumping measures by means of deposit. As of November 23, 2012, import operators shall, according to the dumping margin of each company as determined in this preliminary ruling, pay relevant deposits to Customs of the People’s Republic of China when importing resorcinol originated in Japan and the U.S..

The products subject to deposits in this Case are listed under tariff No. 29072100 in the Customs Import and Export Tariff of the People’s Republic of China, and the resorcinol salt thereunder is not in the scope of products under investigation. Detailed descriptions of the products subject to deposits are as follows:

Scope of investigation: imports of resorcinol originated in Japan and the U.S.

Name of the Products under Investigation: M-dihydroxybenzene or Resorcinol

Molecular formula: C6H6O2
Chemical structural formula:

Physical and chemical characteristics: usually white acicular crystal in appearance; turn red gradually when exposed to air; easily soluble in water, ethanol and diethyl ether; soluble in chloroform and carbon tetrachloride, and insoluble in benzene.

Main usage: as an important intermediate for chemical synthesis and fine chemical material, resorcinol is mainly used for the production of rubber adhesive and ultraviolet absorbent. In addition, it can also be used for producing wood adhesive, fire retardant, and the intermediate of medicine and pesticides.

Rates of deposit imposed on companies are as follows:

Japanese Companies:
a) Sumitomo Chemical Company, Limited　　　　 40.5%
b) Mitsui Chemicals, Inc. 40.5%
c) All others 　　　　　　　　　　　　　　 　 40.5%

The U.S. Companies:
a) INDSPEC Chemical Corporation 30.1%
b) All others 　　　　　　　　　　　　　　 　 30.1%

III. Methods of Levy of Deposit

As of November 23, 2012, import operators shall, according to the dumping margin of each company as determined in this preliminary ruling, pay relevant deposits to Customs of the People’s Republic of China when importing resorcinol originated in Japan and the U.S.. The deposit shall be levied by means of ad valorem on the basis of dutiable value authorized by Customs, and the calculation formula is: Deposit = (dutiable value authorized by Customs x rate of deposit) x (1 + rate of import value-added tax).

IV. Comments
All interested parties may, within 20 days as of issuance of this Announcement, submit their written comments with relevant evidence to the Investigating Authority, who will consider the same according to law.

Ministry of Commerce of the People’s Republic of China
November 23, 2012

(Translated by Hu Xiaoying)