New Trade Case on Imports of Non-Latex, Non-Hydrogenated Acrylonitrile-Butadiene Rubber From France, Mexico, and South Korea

A new U.S. antidumping (“AD”) duty petition was filed on June 30 by Zeon Chemicals L.P. and Zeon GP, LLC against imports of non-latex, non-hydrogenated acrylonitrile-butadiene rubber (“NBR”) from France, Mexico, and South Korea.

The merchandise covered by this petition covers non-latex, non-hydrogenated acrylonitrile-butadiene rubber, more commonly referred to as NBR. NBR is a type of synthetic rubber polymer produced by emulsifying butadiene and acrylonitrile together in water, then polymerizing the result, which converts the single unit molecules of the new combined material into larger molecules with multiple units. The end product can have from 15% to 50% acrylonitrile content, depending on the characteristics the manufacturer wants the rubber to have. NBR is most popular for its oil resistance, although it is also valued for its toughness and temperature-resistant properties. Its uses span from inclusion in hoses and duct systems to use in wires, cables, rollers, and belting. For a full description of the scope of the petition, please see the Scope section below.

The petition includes AD (less than fair value) allegations against France, Mexico, and South Korea. The Department of Commerce (“DOC”) and the 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 the U.S. industry. If the ITC finds that standard is met, then the cases will move to the DOC which will calculate the preliminary AD duty margins.

The DOC’s preliminary determinations are currently scheduled for Dec. 7,  which is the date when importers will be required to deposit the calculated duties upon the products’ entry into the U.S. market.

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.

The following are key facts about this trade case:

Petitioners: Zeon Chemicals L.P. and Zeon GP, LLC

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

AD margins: Petitioners have alleged the following AD margins:

• France: calculated dumping margin of 72.27 percent, ad valorem,
• Mexico: a calculated dumping margin of 97.00 percent, ad valorem, and
• South Korea: an estimated dumping margin of 110.31 percent ad valorem.

Merchandise covered by the scope of the case:

The product covered by this investigation is commonly referred to as acrylonitrile butadiene rubber or nitrile rubber (“NBR”). NBR is a synthetic rubber produced by the emulsion polymerization of butadiene and acrylonitrile with or without the incorporation of a third component selected from methacrylic acid or isoprene. NBR is sold in bale, slab, crumb, powder, pellet, particulate, and liquid form.

NBR in the latex form (HTSUS at subheading 4002.51.00) is excluded from the scope of this investigation. Also excluded from the scope of this investigation is:

• NBR containing additives (e.g. nitrile rubber further compounded with fillers, reinforcement agents, vulcanization agents, etc.; by example, products classified under HTSUS subheading 4005);
• NBR containing rubber processing chemicals, NBR containing other materials used for further processing beyond the polymerization process; and
• Hydrogenated NBR (commonly referred to as HNBR) produced by subsequent dissolution and hydrogenation of NBR.

The merchandise subject to this investigation is classified in the HTSUS at subheading 4002.59.00. Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive.

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); William Sjoberg (wsjoberg@clarkhill.com; 202-772-0924), Matthew Goldstein (mgoldstein@clarkhill.com, 202-772-0917), Courtney Gayle Taylor (cgtaylor@clarkhill.com; 202-552-2350); Dennis Devaney (ddevaney@clarkhill.com, 313-309-9454); or another member of Clark Hill’s International Trade Business Unit.