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On September 19, 2019, Brazil’s Secretariat of Foreign Trade (“SECEX”) of the Ministry of Economics published Notice No. 56, initiating the sunset review of the duties applied on imports of phenol originating in United States and European Union. The product is commonly classified under item 2907.11.00 of the Mercosur Common Nomenclature – NCM (HS based). The petitioner is Rhodia Poliamida e Especialidades S.A.
The product under investigation was defined as industrial phenol, excluded the ones defined as “pure” or “extra pure” when exported from United States or European Union.
For purposes of initiating the investigation, the Brazilian authority has calculated the following normal values, using United States and European Union’s data to construct the normal value:
| Country | Normal value (US$/ton) |
| United States | 1,542.08 |
| European Union | 1,592.58 |
The authority decided to keep the probability of recurrence of dumping as confidential. The dumping margin calculated in the initiation is not public.
Exporters and importers participating in the investigation can demonstrate that the product is not dumped to Brazil, avoiding the imposition of antidumping duties. Alternatively, if the authority understands that exports were dumped, exporting companies participating in the investigation may request individual dumping margins, which results in lower duties on their exports.
Producers/exporters will receive questionnaires indicating the information necessary to the investigation and shall have a 30-day deadline for response, counting from the date of notification. Interested parties may participate in the investigation through legal representatives duly registered before the authority. Other parties who consider themselves as interested in the proceeding shall file a request for participation within a 20-day deadline counting from the beginning of the investigation. Notice of Initiation No. 56 can be accessed at the following link (in Portuguese).
