China Set to Impose New Tariffs on Nylon
October 20, 2009 1 Comment
BEIJING — China’s Ministry of Commerce said Monday it has made a preliminary ruling to impose tariffs of up to 36% on nylon 6, or polycaprolactam, from the U.S., saying the imports have damaged the domestic industry.
The antidumping measure is the latest in a series of trade measures by China after the Obama administration last month said it would impose duties of between 25% and 35% on imports of tires from China for the next three years.
China followed that decision with probes of potential antidumping measures on U.S. auto parts and chicken.
The ministry said it would require importers to pay deposits on nylon 6 — used to manufacture a variety of products, from toothbrushes to gun frames to chiffon — imported from foreign companies judged to be selling the material in China for less than a fair price.
Tariffs will also be imposed on nylon 6 from the European Union, Russia and Taiwan, but at much lower rates.
The amount of the deposits will range from 4% to 36% and will be based on the aftertax prices of the imported material, depending on how underpriced the material is.
The ruling takes effect Tuesday, the ministry said in a statement posted on its Web site.
Among companies affected by the proposed duties are German chemical giant BASF Corp. in the U.S., which was levied with a 30.4% duty, and Honeywell Resins & Chemical LLC, a part of Honeywell International Inc., levied with a 36.2% duty.