International Trade Fellow William Sjoberg and Partner Maram Salaheldin successfully represented Industrias Negromex, SA de CV and Dynasol, LLC in a 12-month investigation by the U.S. Department of Commerce and the International Trade Commission of the United States on the tariffication of an import of rubber products.
Negromex is the sole Mexican foreign manufacturer/exporter of acrylonitrile-butadiene rubber (NBR), and Dynasol is its affiliated US importer of NBR.
The Commission ruled unanimously on July 11 that a US industry is not seriously harmed or threatened with material injury when NBR is imported from France, Mexico and South Korea. The US Department of Commerce has determined that these imports are being sold in the United States at less than fair value.
“I’m glad the Commission was able to apply the facts to the law and come to a thoughtful decision,” Sjoberg said. “I am even happier that the customer can now sell their NBR in the United States without the burden of illegal anti-dumping duties.”
Sjoberg and Salaheldin worked with Negromex and Dynasol to ensure that the investigation file correctly reflected the companies’ financial and economic information. Based on this information, they submitted arguments in writing to the Department of Commerce and the Commission in addition to pleading before the Commission in an administrative hearing.
The decision comes after a preliminary investigation resulted in a 5-0 vote by the USITC in favor of injury and preliminary and final determinations in which the Commerce Department calculated anti-dumping duty margins for all companies in the three countries in both phases of the Department’s investigation. In both phases, Negromex obtained the lowest anti-dumping margins of all the companies involved in the investigation. Following the July 11 ruling, the Commerce Department will not issue anti-dumping orders against NBR of France, Mexico and South Korea.
“The key to reversing the vote at the Commission was the stronger administrative record that allowed us to conduct more detailed economic analysis,” Sjoberg said. “With this analysis, we were able to both highlight our client’s affirmative information and, equally important, establish that any injury to the US industry was not attributable to imports of NBR from of the target countries.
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-related consumer products include pipes, air ducts, construction insulation, adhesives, carpets, wires and cables, and gaskets for automotive and industrial use.
For more information on this case, contact William Sjoberg or Maram Salaheldin.