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CSMS # 60443754 - Initiation of AD/CVD Investigations: Certain Epoxy Resins from the People’s Republic of China (China), India, the Republic of Korea (Korea), Taiwan, and Thailand

On April 23, 2024, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty (CVD) investigations on “Certain Epoxy Resins from China, India, Korea, Taiwan, and Thailand” (Initiation Notices).  These investigations have been assigned the following case numbers: A-570-166 and C570-167 (China) A-533-926 and C-533-927 (India) A-580-919 and C-580-920 (Korea) A-583-876 and C-583-877 (Taiwan) A-549-850 (Thailand).

The Scope of Merchandise covered by these investigations reads as follows:

The merchandise subject to these investigations are fully or partially uncured epoxy resins, also known as epoxide resins, polyepoxides, oxirane resins, ethoxyline resins, diglycidyl ether of bisphenol, (chloromethyl)oxirane, or aromatic diglycidyl, which are polymers or prepolymers containing epoxy groups (i.e., three-membered ring structures comprised of two carbon atoms and one oxygen atom). Epoxy resins range in physical form from low viscosity liquids to solids. All epoxy resins are covered by the scope of these investigations irrespective of physical form, viscosity, grade, purity, molecular weight, or molecular structure, and 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 so as 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 no less than 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 that enter as part of a system or kit with separately packaged co-reactants, such as hardeners or curing agents, are within the scope. The scope does not include any separately packaged co-reactants that would not fall within the scope if entered on their own.

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 or blended with epoxy resin from sources not subject to these investigations.  Only the subject component of such commingled products is covered by the scope of these investigations.

Excluded from the scope are phenoxy resins, which are polymers with a weight greater than 11,000 Daltons, a Melt Flow Index (MFI) at 200°C (392°F) no less than 4 grams and no greater than 70 grams per 10 min, Glass-Transition Temperatures (Tg) no less than 80°C (176°F) and no greater than 100°C (212°F), and which contain no epoxy groups other than at the terminal ends of the molecule.

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, 2910.90.9100, 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.

Parties may submit comments on the scope of the investigations. Please be sure to comply with all requirements pertaining submitting comments as described in the forthcoming Initiation Notices. Upon their publication in the Federal Register, the Initiation Notices may be found at http://www.federalregister.gov/ via the search bar using the case numbers assigned to these investigations.

Importers should be aware that entries of subject merchandise made after the initiation of an investigation may retroactively be subject to antidumping (AD) and/or countervailing duties (CVD).

For questions about CBP’s AD/CVD enforcement, see Priority Trade Issue: Antidumping and Countervailing Duties | U.S. Customs and Border Protection (cbp.gov).