2025-05750NoticeWallet

Extra taxes slap Chinese epoxy resins for unfair aid

Published Date: 4/3/2025

Notice

Summary

The U.S. Department of Commerce found that Chinese companies making certain epoxy resins got unfair government help in 2023. Because of this, the U.S. will add extra taxes (called countervailing duties) on these products starting April 3, 2025. This move helps American businesses compete fairly and could affect prices and imports of these resins.

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Massive 547.76% Countervailing Duty Rate

The Department of Commerce found countervailable subsidies and assigned an estimated countervailable subsidy rate of 547.76 percent ad valorem to Jiangsu Sanmu Group Co., Ltd., Shandong Bluestar Dongda Chemical, and to all other producers/exporters. That 547.76% rate will be the basis for countervailing duties if the U.S. International Trade Commission (ITC) issues a final affirmative injury determination.

Retroactive Suspension for June 15, 2024 Entries

U.S. Customs and Border Protection was instructed to suspend liquidation of entries of subject epoxy resins from China entered, or withdrawn from warehouse, for consumption on or after June 15, 2024. Commerce instructed CBP to discontinue suspension for entries on or after January 11, 2025, but to continue suspension for entries that were suspended between June 15, 2024 and January 10, 2025; if the ITC later finds material injury, duties will be assessed on those suspended entries dating back to June 15, 2024.

Which Epoxy Products Are Covered or Excluded

The scope covers uncured epoxy resins in all physical forms, and includes blends or products where the epoxy-resin component is at least 30 percent of total weight. Excluded are phenoxy resins (polymers >11,000 Daltons with MFI 4–70 g/10 min and Tg 80–100 °C), certain paint/coating products where pigment is at least 10% of weight and epoxy resin is at most 80% and curing agent 5–40% of weight, preimpregnated fabrics ("pre-pregs"), and Tetramethyl Bisphenol F Diglycidyl Ether (TMBPF-DGE) with CAS 113693-69-9 and an epoxy equivalent weight of 200–230 g/eq.

Refunds Possible If ITC Finds No Injury

If the U.S. International Trade Commission determines that domestic industry is not materially injured or threatened with material injury, Commerce will terminate the proceeding and all estimated duties deposited or securities posted because of the suspension of liquidation will be refunded or canceled. The ITC will make its final injury determination no later than 45 days after Commerce's final determination.

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Key Dates

Published Date
4/3/2025

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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