According to the provisions of the countervailing regulations of the people's Republic of China (hereinafter referred to as the countervailing regulations), on August 14, 2020, the Ministry of Commerce (hereinafter referred to as the investigation authority) issued announcement No. 32 of 2020 and decided to file a countervailing investigation on the imported polyphenylene ether (hereinafter referred to as the investigated product) originating in the United States.
The investigating authority investigated whether the investigated products had subsidies and the amount of subsidies, whether the investigated products caused damage to the domestic polyphenylene ether industry and the degree of damage, as well as the causal relationship between subsidies and damage. According to the investigation results and Article 25 of the countervailing regulations, the investigation organ makes a preliminary ruling (see Annex). The relevant matters are hereby announced as follows:
1、 Preliminary ruling
The investigating authority preliminarily determined that the imported polyphenylene oxide originating in the United States was subsidized, the domestic polyphenylene oxide industry was materially damaged, and there was a causal relationship between the subsidy and the material damage.
2、 Temporary countervailing measures
In accordance with the provisions of Articles 29 and 30 of the countervailing regulations, the Ministry of Commerce proposed to the Tariff Commission of the State Council to take temporary countervailing measures against polyphenylene ether imported from the United States. According to the proposal of the Ministry of Commerce, the Tariff Commission of the State Council made a decision to implement temporary countervailing measures on imported polyphenylene oxide originating in the United States in the form of temporary countervailing duty deposit from October 15, 2021. When importing the investigated products, the importer shall provide the customs of the people's Republic of China with the corresponding temporary countervailing duty deposit according to the ad valorem subsidy rate of each company determined in this preliminary determination decision.
The specific description of the investigated products is as follows:
Scope of investigation: polyphenylene oxide imported from the United States.
Name of investigated product: polyphenylene ether.
English Name: polyphenylene ether, also known as polyphenylene oxide, abbreviated as PPE or PPO.
Product Description: polyphenylene ether is a high-performance thermoplastic resin and its composition with 2,6-dimethyl-1,4-phenylether group (molecular formula) in the molecular chain. Whether it is modified or mixed or added with fillers and additives such as polystyrene, hyd styrene butadiene block copolymer and nylon, polyphenylene ether has the advantages of light weight, high temperature resistance, corrosion resistance, good dimensional stability, low water absorption Low dielectric loss, halogen-free flame retardant and other excellent properties.
Main uses: polyphenylene ether can be used for injection molding, extrusion, alloy, etc. the products are widely used in photovoltaic, automobile, communication, electronic and electrical appliances, water treatment, medical devices and other fields.
The product belongs to the import and export tariff of the people's Republic of China: 39072090. Products other than polyphenylene ether under this tariff number are not within the scope of this investigation.
Ad valorem subsidy rates imposed on U.S. companies are as follows:
1. Saudi Basic Industrial Innovation plastics USA Co., Ltd. 17.7%
（SABIC Innovative Plastics US LLC）
2. Other US companies 17.7%
（All Others）
3、 Method of collecting temporary countervailing duty deposit
From October 15, 2021, when importing polyphenylene oxide originating in the United States, the import operator shall provide corresponding temporary countervailing duty deposit to the customs of the people's Republic of China according to the ad valorem subsidy rate of each company determined in this preliminary determination. The temporary countervailing duty deposit shall be calculated and levied ad valorem at the duty paid price approved by the customs. The calculation formula is: the amount of temporary countervailing duty deposit = the duty paid price approved by the customs × Temporary countervailing duty margin ratio; The import value-added tax deposit shall be calculated and levied ad valorem at the customs value approved by the customs plus the deposit of customs duties and temporary countervailing duties.
