On February 19, 2019, the Coalition for Acetone Fair Trade filed an anti-dumping (“AD”) petition on behalf of AdvanSix Inc., Altivia Petrochemicals, LLC, and Olin Corporation, challenging imports of acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain.
Dumping occurs when exporters of a product, in this case acetone, price that good in the U.S. market for less than normal value, or below cost of production. The petition—filed with both the International Trade Commission and the U.S. Department of Commerce—enables the U.S. government to investigate whether exporters from the listed countries have been dumping acetone into the U.S. market. Upon a finding that there is in fact dumping, and that there is a “material injury” or “threat of a material injury” to the domestic industry as a result of the dumping, the U.S. government can impose AD duties on those affected goods.
The filing of this petition came days before AdvanSix held their Q4 2018 earnings conference call (on February 22, 2019) – during which Erin Kane, AdvanSix President and Chief Executive Officer, stated: “Elevated levels of imports into the U.S. as well as aggressive trading activity have put continued pressure on regional pricing and spreads.” In the event AD duties are imposed, it would be the importers of acetone from the listed companies and countries who are affected most within the U.S. market.
Scope of the Petition
Acetone covered by this petition is acetone of all grades of liquid or aqueous acetone. Acetone is also known under the International Union of Pure and Applied Chemistry (“IUPAC”) name propan-2-one. In addition to the IUPAC name, acetone is also referred to as β-ketopropane (or “beta-ketopropane”), ketone propane, methyl ketone, dimethyl ketone, DMK, dimethyl carbonyl, propanone, 2-propanone, dimethyl formaldehyde, pyroacetic acid, pyroacetic ether, and pyroactic spirit. Acetone is an isomer of the chemical formula C3H6O, with a specific molecular formula of CH₃COCH₃ or (CH₃)₂CO.
The scope includes acetone that is combined or mixed with other products, including, but not limited to: benzene, diethyl ether, methanol, chloroform, and ethanol. For such combined products, only the acetone component is covered by the scope of these investigations. Acetone that has been combined with other products is included within the scope, regardless of whether the combining occurs in third countries.
Acetone that is otherwise subject to these investigations is not excluded when commingled with acetone from sources not subject to these investigations. Only the subject merchandise component of such commingled products is covered by the scope of these investigations. The Chemical Abstracts Service (“CAS”) registry number for acetone is 67-64-1.
The merchandise covered by these investigations is currently classifiable under Harmonized Tariff Schedule of the United States (“HTSUS”) subheadings 2914.11.1000 and 2914.11.5000. Although these HTSUS subheadings and CAS registry number are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.
Alleged Dumping Margins
The petitioners allege the following dumping margins:
If you have any questions regarding this investigation and how it may impact your future imports, please do not hesitate to contact us.