Kumho Petrochemical sues US over ESBR duties

New York — Kumho Petrochemical Co. Ltd. is seeking a judicial review of a US International Trade Commission (ITC) decision to levy antidumping duties against emulsion styrene-butadiene rubber (ESBR) imports from South Korea.

Kumho Petrochemical filed a lawsuit recently in the US Court of International Trade seeking the action.

The ITC voted 2-2 on 3 Aug to make a final determination that ESBR imports from South Korea, Poland, Mexico and Brazil were causing material injury to US ESBR manufacturers through selling their products in the US at less than fair value.

Within the ITC, a tie vote constitutes an affirmative decision.

On 19 July, the US Department of Commerce levied antidumping duty rates against ESBR imports from all four countries. In the case of South Korea, Commerce set duty rates of 44.3% against Kumho and another South Korean ESBR producer, Daewoo International Corp.

The agency set a duty rate of 9.66% for a third South Korean firm, LG Chem. Ltd., and also set 9.66% as the general rate for all other South Korean ESBR producers.

The ITC erred on several points in finding that Kumho's ESBR exports caused material injury to the US industry, Kumho argued in its 11 Nov complaint.

"The commission erred in concluding the subject import were 'significant,'" Kumho said. "Specifically, the commission ignored record evidence that US purchasers bought the subject imports for non-price reasons, including, inter alia, to ensure reliability of supply, availability of supply, and quality of supply."

Toward the end of the period of investigation, ESBR imports declined, outpacing the decrease in US consumption, according to Kumho.

"Because imports were drawn into the market by lack of available and reliable supply, and then receded as the domestic industry stabilized, the commission's conclusion that imports were significant is unsupported by substantial evidence and was otherwise not in accordance with law," it said.

Lion Elastomer LLC and the now-bankrupt East West Copolymer LLC petitioned the ITC in July 2016 for relief from ESBR imports.