Final Ruling on NBR Imports Originating in Japan and South Korea

Inaccordance with the Anti-dumping Regulations of the People's Republic of China(hereinafter referred to as the "Anti-dumping Regulations"), on November9, 2017, the Ministry of Commerce (hereinafter referred to as the"Investigation Authority") issued Announcement No.74 of 2017,deciding to carry out anti-dumping investigation against imports of NBR (hereinafterreferred to as the "Products under Investigation") originating in Japanand South Korea.

TheInvestigation Authority has investigated into the existence of dumping anddumping margin, the existence of damage to industry in mainland China caused bythe products under investigation and the extent of such damage, as well as thecausal relationship between the dumping and the damage. According to theinvestigation findings and Article 24 of the Anti-dumping Regulations, theInvestigation Authority released on July 16, 2018, an announcement on thepreliminary ruling, affirming that there was dumping of NBR originating in Japanand South Korea and the domestic NBR industry was substantially damaged, andthere was a causal relationship betweenthe dumping and the substantive damage.

Upon the preliminary ruling, theInvestigation Authority continued its investigation into the dumping anddumping margin, the damage and the extent of such damage, as well as the causalrelationship between the dumping and the damage. The investigation now comes toan end. The Investigation Authority has made the final ruling according toArticle 25 of the Anti-dumping Regulations. Relevant matters are herebyannounced as follows:

I.Final ruling

Theinvestigation authority finally ruled that there was dumping of NBR originating in Japan and South Korea and the NBR industryin mainland China was substantially damaged, and there was a causal relationship between the dumping andthe substantive damage.

II.Levy of anti-dumping duties

The Investigation Authority, in accordance with Article38 of the Anti-dumping Regulations, proposed suggestions on the levy ofanti-dumping duties to the Customs Tariff Commission of the State Council,which then decided, as of November 9, 2018, to impose anti-dumping duties on imports of NBR originating in Japan and South Korea.

Details of the Products under Investigation are asfollows:

Scope ofinvestigation: imports of NBR originating in Japan and South Korea.

English names: Acrylonitrile-butadiene rubber (NBR)

Molecular structure: (C₄H₆)m(C₃H₃N)n

Chemicalstructural formula:

Physicaland chemical characteristics: NBR is a copolymer of acrylonitrile and butadienemonomer, and its appearance is grey to pale yellow lump or powder solid. It hasexcellent oil resistance, wear resistance, heat resistance and air tightness.The properties of NBR are affected by the content of acrylonitrile. With theincrease of acrylonitrile content, the tensile strength, heat resistance, oilresistance, air tightness and hardnesswill increase, but the elasticity and cold resistance decrease.

Main purposes:because of its oil resistance and excellent physical and mechanical properties,NBR is widely used in all kinds of oil resistance products, such as O-ring, oilseal, rubber hose, hose, washer, rubber roller, sole, conveyor belt, and rubberfoam pipe insulation etc.

The product is listed under tariff numbers of 40025910and 40025990 in the Customs Import and Export Tariff of the People’s Republicof China.

Rates of anti-dumping duty imposed on companies are asfollows:

Companies of the Republic of Korea:
1. KUMHO PETROCHEMICAL CO., LTD: 12.0%
2. LG CHEM, LTD.: 15.0%
3. All Others: 37.3%
Japanese companies:
1. Zeon Corporation: 28.1%

2. JSR Corporation: 16.0%

3. All Others 56.4%