2025-05751NoticeWallet

Korea’s Subsidized Epoxy Resins Face U.S. Tax Sting

Published Date: 4/3/2025

Notice

Summary

The U.S. Department of Commerce found that some Korean companies making epoxy resins got unfair government help, so they’re adding extra taxes on these imports starting April 3, 2025. This means U.S. buyers might pay more for these products, and Korean exporters will feel the pinch. The investigation looked at the whole year of 2023 to make this decision.

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Korean Epoxy Resin Import Duties Set

Commerce found countervailable subsidies for certain epoxy resins from Korea and set ad valorem subsidy rates of 1.01% for Kukdo Chemical Co., Ltd., 1.84% for Kumho P&B Chemicals Inc., and 1.30% for all others. U.S. Customs and Border Protection is directed to suspend liquidation and require cash deposits in those amounts for entries entered or withdrawn for consumption on or after April 3, 2025; the suspension will remain in effect until further notice and the U.S. International Trade Commission will decide within 75 days whether a final countervailing duty order will be issued.

Which Epoxy Products Are Covered

The rule covers fully or partially uncured epoxy resins (epoxy groups present) in any physical form, and includes blends or resins with additives so long as the epoxy resin component is at least 30 percent of total weight. Exclusions include phenoxy resins (polymers >11,000 Daltons with specified Melt Flow Index 4–70 g/10 min and glass-transition temperature 80–100 °C), certain paint/coating products that meet three weight tests (pigment ≥10% of product, epoxy resin ≤80% of product, curing agent 5–40% of product), and Tetramethyl Bisphenol F-DGE Polymer (CAS 113693-69-9) with epoxy equivalent weight 200–230 g/eq.

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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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