China Furfuryl Alcohol: 'Minimal' Silane Additives Don't Obviate AD Duties, Says Commerce
Furfuryl alcohol with a minimal amount of silane added prior to importation is subject to antidumping duties on furfuryl alcohol from China (A-570-845), said the Commerce Department in a Nov. 14 final scope ruling. PennAKem requested the scope proceeding after finding out that a mixture of 99.7-99.8 percent furfuryl alcohol and 0.2-0.3 percent silane called “Faint S” is being entered as merchandise not subject to AD duties.
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Furfuryl alcohol is a colorless or pale yellow primary alcohol mainly used to manufacture resins. Silane is added to furfuryl alcohol as a chemical coupling agent that increases the strength of furan resins. As such, the Faint S product is used in the same way as furfuryl alcohol otherwise subject to the AD duty order, said PennAKem. According to PennAKem, the quantity of silane added in Faint S is so small as to not change the appearance, function, or price of the product. As such, furfuryl alcohol that contains 0.5 percent silane or less, including Faint S, should be subject to AD duties on furfuryl alcohol from China, it said.
Commerce looked to the record of the original investigation, and found the amount of silane added to Faint S is so small that the chemical should still be subject to AD duties. Although nothing in the record of the investigation discussed additives, the International Trade Commission injury report said industry considers the standard purity level of furfuryl alcohol to be 98%. Given that the silane added in Faint S is well below the threshold for impurities in furfuryl alcohol, the additive doesn’t exempt Faint S from AD duties, said Commerce.
Although PennAKem wanted Commerce to rule all furfuryl alcohol with 0.5 percent or less silane is subject to AD duties “in order to draw a line designed to avoid further gamesmanship by importers and to lessen the need for further scope rulings,” Commerce limited its ruling to furfuryl alcohol with 0.2-0.3 percent silane. PennAKem admitted it only knew of the existence of 0.2-0.3 percent silane furfuryl alcohol, and in Commerce scope rulings “the requesting party must be able to show that the product is currently in production.” But Commerce fired a shot across the bow of importers that would slightly change the silane percentage to skirt the ruling: “our decision herein will inform any future circumstances where, prior to importation, similarly minimal amounts of additive are blended into a furfuryl alcohol product otherwise covered by the explicit language of the scope of the order,” the agency said.
Email ITTNews@warren-news.com for a copy of the scope ruling.