New Trade Case on Imports of Certain Epoxy Resins from China, India, South Korea, Taiwan, and Thailand

Five new U.S. antidumping (“AD”) petitions were filed on April 3, 2024, by the U.S. Epoxy Resin Producers Ad Hoc Coalition (the “Coalition” or “Petitioner”) against imports of epoxy resins from China, India, South Korea, Taiwan, and Thailand. The Coalition also filed four countervailing duty (“CVD”) petitions against the imports of epoxy resins from China, India, South Korea, and Taiwan. The two Coalition members are Olin Corporation and Westlake Corporation.

The merchandise covered by these petitions consists of certain epoxy resins. Epoxy resins are a class of thermosetting resins that, when reacted with hardeners or curing agents, form a strong, durable substance used in a vast array of important commercial and industrial applications. For example, epoxy resins are used in composite systems to enable lightweighting in the automotive, aerospace, and defense industries. Epoxy resins are also used in the electronics industry and in building and construction applications to improve durability. When applied as a coating, epoxy resins serve as a protective layer for many products, ranging from beverage cans to ships and bridges. Epoxy resins are also used in renewable energy applications. Please see below for the full text of the proposed scope for the investigations.

The Department of Commerce (“DOC”) and the U.S. International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring or threatening to injure the U.S. industry. If the ITC finds that this standard is met, the cases will move to the DOC, which will calculate the preliminary AD and CVD duty margins.

The DOC’s preliminary determinations are currently expected by June 27, 2024 (CVD) and Sept. 10, 2024 (AD). On the date of publication of DOC’s preliminary determinations, importers will be required to deposit the calculated duties upon the products’ entry into the U.S. market.

Importers should also be aware that entries may be subject to AD/CVD cash deposits 90 days before the DOC preliminary determinations if the DOC issues a finding of “critical circumstances,” meaning that imports increased by at least 15 percent following the filing of the petition compared to a similar period (typically three months) before the petition.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available. A schedule of approximate key dates is attached below.

The following are key facts about this trade case:

Petitioner: The Coalition, consisting of Olin Corporation and Westlake Corporation.

Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual importers and exporters named in the petitions.

AD/CVD margins: Petitioner alleged the following AD/CVD margins:

• China: dumping margins from 264.87% to 351.91%, ad valorem, and countervailing duty margins above de minimis;
• India: dumping margins from 11.43% to 17.50%, ad valorem, and countervailing duty margins above de minimis;
• South Korea: dumping margins from 30.01% to 69.42%, ad valorem, and countervailing duty margins above de minimis;
• Taiwan: dumping margins from 87.19% to 136.02%, ad valorem, and countervailing duty margins above de minimis; and
• Thailand: dumping margins from 163.94% to 205.63%.

Merchandise covered by the scope of the case

The proposed scope of these investigations describes the subject merchandise as:

The merchandise subject to these petitions are epoxy resins, also known as epoxide resins or polyepoxides, which are polymers or prepolymers containing epoxy groups. Epoxy resins range in physical form from low-viscosity liquids to solids and are used in a wide range of applications such as coatings, paints, adhesives, composite materials, wind blade systems, insulating materials, civil engineering materials, and electronics. All epoxy resins are covered by the scope of these petitions irrespective of physical form, viscosity, grade, purity, molecular weight, or molecular structure regardless of packaging.

Epoxy resins may contain modifiers or additives, such as hardeners, curatives, colorants, pigments, diluents, solvents, thickeners, fillers, plasticizers, softeners, flame retardants, toughening agents, catalysts, Bisphenol F, and ultraviolet light inhibitors, so long as the modifier or additive has not chemically reacted to cure the epoxy resin or convert it into a different product no longer containing epoxy groups. Such epoxy resins with modifiers or additives are included in the scope where the epoxy resin component comprises at least 30 percent of the total weight of the product. The scope also includes blends of epoxy resins with different types of epoxy resins, with or without the inclusion of modifiers and additives, so long as the combined epoxy resin component comprises at least 30 percent of the total weight of the blend.

Epoxy resins are characterized by the presence of reactive epoxy groups that allow them to be readily cross-linked at the time of use. Epoxy resins may be reacted (cross-linked) either with themselves or with a wide range of co-reactants, often referred to as hardeners, curatives, or curing agents. The cross-linking reaction is commonly referred to as curing. The epoxy resins and blends thereof covered by this scope have not been cured.

Epoxy resins that enter as part of a system or kit with separately packaged co-reactants, such as hardeners or curing agents, are within the scope. For such entries, both the epoxy resin and the co-reactant are covered by the scope of these petitions when entered together.

The scope includes merchandise matching the above description that has been processed in a third country, including by commingling, diluting, introducing, or removing modifiers or additives, or performing any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the subject country.

The scope also includes epoxy resin that is commingled with epoxy resin from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of this investigation.

Excluded from the scope are phenoxy resins, which are polymers weighing more than 11,000 Daltons and containing no epoxy groups other than at the terminal ends of the molecule. Phenoxy resins’ Melt Flow Index (“MFI”) at 200°C (392°F) range from 4 to 70 grams per 10 minutes and its Glass-Transition Temperatures (“Tg”) range from 80 to 100°C (176 to 212°F).

Excluded from the scope are certain paint and coating products, which are blends, mixtures, or other formulations of epoxy resin, curing agent, and pigment, in any form, packaged in one or more containers, wherein (1) the pigment represents a minimum of 10 percent of the total weight of the product, (2) the epoxy resin represents a maximum of 80 percent of the total weight of the product, and (3) the curing agent represents 5 to 40 percent of the total weight of the product.

Excluded from the scope are preimpregnated fabrics or fibers, often referred to as “pre-pregs,” which are composite materials consisting of fabrics or fibers (typically carbon or glass) impregnated with epoxy resin.

This merchandise is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 3907.30.0000. Subject merchandise may also be entered under subheadings 3907.29.0000, 3824.99.9397, 3214.10.0020, 2910.90.91, 2910.90.9000, 2910.90.2000, and 1518.00.4000. The HTSUS subheadings are provided for convenience and customs purposes only; the written description of the scope is dispositive.

Approximate Key Dates*
Antidumping Duty Investigation
Event	No. of Days	Date of Action
Petition Filed	0	4/3/2024
DOC Initiation Date	20	4/23/2024
	ITC Preliminary Investigations**
Questionnaires Due	14	4/17/2024
Request to appear at Conference	18	4/22/2024
Conference	21	4/24/2024
Post-Conference Briefs	26	4/29/2024
ITC Vote	43	5/16/2024
ITC Preliminary Determination	45	5/20/2024
	DOC Investigations
DOC Preliminary AD Determination	160	9/10/2024
DOC Final AD Determination	235	11/25/2024
	ITC Final Investigations
ITC Final AD Determination	280	1/8/2025
	DOC Final Investigations
DOC AD Publication of Order	287	1/15/2025
Countervailing Duty Investigation
Event	No. of Days	Date of Action
Petition Filed	0	4/3/2024
DOC Initiation Date	20	4/23/2024
ITC Determination of Reasonable Indication of Injury	45	5/20/2024
DOC Preliminary CVD Determination	85	6/27/2024
Submission of Factual Information to DOC	95	7/8/2024
Request for a DOC Hearing	122	8/5/2024
DOC Final CVD Determination	160	9/10/2024
ITC Final CVD Determination	205	10/25/2024
DOC CVD Publication of Order	212	11/1/2024

* Deadlines are approximate and may change. When a deadline falls on a weekend or Federal holiday, deadlines will be extended to the next business day, as reflected in the above.

** The ITC preliminary dates may change slightly when the ITC publishes its notice of institution in the Federal Register. When the notice is published, parties will have seven days to file an entry of appearance at the ITC and apply for access to confidential information through counsel under Administrative Protective Order.

If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.com; 202-640-6680), Kevin Williams (kwilliams@clarkhill.com; 312-985-5907), Aristeo Lopez (alopez@clarkhill.com; 202-552-2366), Kelsey Christensen (kchristensen@clarkhill.com; 202-640-6670), Sally Alghazali (salghazali@clarkhill.com; 202-572-8676), or other members of Clark Hill’s International Trade Business Unit.

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