New AD/CVD Petitions Filed for Melamine Imports
On February 14, 2024, petitions for antidumping (AD) and countervailing duties (CVD) were submitted concerning imports of Melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago. The filings were made on behalf of Cornerstone Chemical Company.
Melamine is utilized in the production of surface coatings and laminates, commonly found in various products including kitchen and bathroom countertops, tabletops, doors, cabinets, appliances, and furniture.
Cornerstone Chemical Company, the last remaining domestic producer of melamine, claims to face significant challenges due to what it perceives as unfair imports. The company contends that AD/CVD orders are necessary for its continued operation. However, stakeholders in the import and purchase of melamine may raise questions about the justification for imposing higher-than-market prices in the US market solely because Cornerstone is the sole remaining US producer.
Previously, Cornerstone successfully advocated for the imposition of AD/CVD duties on imports of Melamine from China in 2015. Chinese melamine imports are also subjected to Section 301 tariffs. Having achieved the blocking of Chinese melamine imports in 2015, Cornerstone is now seeking similar measures against replacement imports from the aforementioned countries.
The investigation process involves both the International Trade Commission (ITC) and the US Department of Commerce (DOC). The ITC will assess whether imports are causing injury or represent a threat of injury, while the DOC will investigate whether the named imports are being sold in the US below fair value (dumping) or are benefiting from unfair subsidies. Affirmative findings by both agencies are required for the imposition of AD/CVD duties on the subject imports.
Scope of the Investigation
The proposed scope of the investigation mirrors that of existing AD/CVD orders on Melamine from China. It includes all melamine irrespective of purity, particle size, or physical form, provided it falls under the specified Harmonized Tariff Schedule of the United States (HTSUS) subheading.
Alleged AD/CVD Margins
Petitioner estimates dumping margins for the subject countries as follows:
- Japan: 103.66% to 123.81%
- Germany: 5.47% to 139.66%
- India: 378.01% to 619.24%
- Netherlands: 33.4% to 75.18%
- Qatar: 191.63% to 622.05%
- Trinidad and Tobago: 230.30% to 457.76%
Specific subsidy margin calculations were not provided.
Named Exporters/ Producers and U.S. Importers
The petitioner submitted lists of companies believed to be producers, exporters, and importers of the subject merchandise.
Estimated Schedule of Investigations
The investigative timeline is as follows:
- February 14, 2024: Petitions filed
- March 5, 2024: DOC initiates investigation
- March 6, 2024: ITC Staff Conference
- March 30, 2024: ITC preliminary determination
- July 13, 2024: DOC CVD preliminary determination (assuming extended deadline)
- September 11, 2024: DOC AD preliminary determination (assuming extended deadline)
- January 24, 2025: DOC final determination (extended)
- March 10, 2025: ITC final determination (extended)
- March 17, 2025: DOC AD/CVD orders issued (extended)
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