In brief
SECEX (the Brazilian Secretariat of Foreign Trade) opened on 9 February 2024 a new antidumping investigation against Brazilian imports of phthalic anhydride from China, commonly classified under the NCM code 2917.35.00.
The investigated product is widely used in the manufacture of plasticizers, alkyd resins, unsaturated polyester resins, synthetic colorants, and aromatic polyester polyols, among others.
The full text of the SECEX Circular (in Portuguese) that opened the investigation can be accessed in this link.
Importance of stakeholder participation
Active participation of importers, exporters, and any other interested parties in the investigation could be decisive in securing a more favorable outcome. Interested parties may request to be admitted to the process until 1 March 20241, provided they demonstrate the extent to which they could be affected by the investigation.
- Deadline for replying to the Importer's Questionnaire: 30 days as of acknowledgment of receipt (presumed 3three days after the date of electronic transmission by the authority).
- Deadline for replying to the Exporter's Questionnaire: 30 days as of acknowledgment of receipt (presumed seven days after the date of electronic transmission by the authority).
Considering the recently issued regulation, a proceeding for the assessment of public interest would generally only occur after the trade defense investigation is closed (kindly find details on our Legal Alert on the subject).
More details
The new investigation was initiated upon the request of Petrom Petroquímica Mogi das Cruzes S.A., which is said to account for 62% of Brazil's production of phthalic anhydride, and has the support of Elekeiroz S.A., the only other national producer identified so far.
- Investigated product: Phthalic anhydride (NCM code 2917.35.00), also called 1,2 benzene dicarboxylic acid anhydride and phthalic acid anhydride. Chemical compound with the formula C8H4º3, molecular weight of 148.11 g/mol, minimum purity of 99.6%, solid (white scale) or liquid (colorless), minimum solidification point of 130.6°C, maximum color of the molten product 40 Pt/Co1, density in the solid state (20°C) of 1.527 g/cm³ and in the liquid state (150°C) of 1.197 g/cm³. The CAS number of the product is 85-44-92.
- Not included: Phthalic anhydride in packages of less than 1 kg is not included within the scope of the investigation. This category of product is generally intended for laboratory purposes, despite having similar technical specifications to the product under investigation.
- Uses: Phthalic anhydride is widely used in the manufacture of plasticizers, alkyd resins, unsaturated polyester resins, synthetic colorants, and aromatic polyester polyol, among other products in smaller volumes.
- Dumping margin for China: USD 868,31/t / 71%.
It should be noted that there are already antidumping duties in force until 2026 for exports of the same product from Israel and Russia, which were applied by the GECEX Resolution No. 286 of 21 December 2021 (link, in Portuguese).
1 20-day deadline, pursuant to Article 45, paragraph third, of the Decree No. 8,058/2013, starting on 14 February 2024, accounted for in a conservative manner.
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