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November 17, 2020 12:19 PM

U.S. imposes elevated duties on imports of E-SBR from South Korea

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    WASHINGTON, D.C. — Imports of emulsion styrene-butadiene rubber (E-SBR) from South Korea will be subject to anti-dumping duties of 44.3% going forward, according to the results of a U.S. Department of Commerce investigation.

    Commerce initiated its investigation into the matter in November 2019 after Lion Elastomers L.L.C. filed a complaint in September 2019. Emulsion SBR is used predominately in car and light truck tires and truck tire retread compounds, according to the federal government.

    Commerce's investigation, which covered the period from September 2018 to August 2019, determined the imported material was being sold in the U.S. at less than fair value at a margin of 44.3%. This means all the companies will be required provide a cash deposit of 44.3%, equal to the dumping margin established in the final results, on imports of the material.

    Commerce's International Trade Administration issued a final ruling Oct. 23 in the case after coming out with preliminary findings July 1.

    Seven South Korean companies are impacted by the ruling: LG Chem Ltd., Daewoo International Corp., Hyundai Glovis Co., Kukje Trading Corp. Kumho Petrochemical Co. Ltd. Sungsan International Co. Ltd. and WE International Co. Ltd.

    LG Chem, after the initial ruling this summer, told the Commerce Department it would not participate in a review of the case. No other company or individual submitted comments following the preliminary results, the administration said.

    At issue is the price of cold-polymerized E-SBR in primary forms, bales, granules, crumbs, pellets, powders, plats and sheets strip, the federal government said.

    Not included in the ruling is the blending of E-SBR with other polymers, high-styrene resin master batch, carbon black master batch and latex.

    This is the second time Commerce has levied import duties on the material being imported from South Korea.

    The ITA determined in 2017 the U.S. synthetic rubber industry was injured by imports of E-SBR from Brazil, South Korea, Mexico and Poland being sold at less than fair value. Antidumping duty orders in that case ranged from 9.66% to 44.3%.

    The material also used in a variety of other products, including conveyor belts, shoes, hoses, roller coverings and flooring.

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