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China ends anti-dumping tariffs on pyridine imports from India and Japan

2019/12/17 15:09:24

On November 20, 2018, at the request of the Chinese pyridine industry, the Chinese Ministry of Commerce announced a decision to launch a year-end reinvestigation into the tax rate applied to raw pyridine imports from India and Japan. The Ministry of Commerce carried out an investigation into the possible effects of removing anti-dumping tariffs on Indian and Japanese raw pyridine imports, such as whether or not pyridine dumping was likely to continue to occur or occur in the future, and whether or not the removal of such tariffs would continue to harm the Chinese pyridine industry or harm the industry in the future.

On November 7, 2019, the person who originally requested the investigation submitted an appeal to the Ministry of Commerce asking for the year-end reinvestigation to be closed.

The Ministry of Commerce opted to accept the request and close the investigation. The Ministry of Commerce added a 27th amendment to the Anti-Dumping Ordinance of the People’s Republic of China (henceforth called the Anti-Dumping Ordinance), formally stating the end of the investigation into raw pyridine imports from Japan and India and proclaiming that anti-dumping tariffs should not be imposed on raw pyridine imports from Japan and India after November 20, 2019. On November 21, 2019, the anti-dumping tariffs were officially eliminated.

Anti-dumping tariff was response to plummeting prices of Indian and Japanese imported pyridine

According to data from the “Pyridine Anti-Dumping Tariff Investigation Appeal” submitted by Red Sun, during the first half of 2012, the average price of Japanese and Indian pyridine imports fell to 3441 USD per ton, while the average price of Chinese-produced pyridine was 7920 USD per ton, over twice the price of the Indian and Japanese product. Furthermore, many predicted at the time that the price of imported pyridine would continue to drop. As these cheap imports seemed sure to harm China’s domestic pyridine industry, on August 2, 2012, Nanjing Red Sun and Anhui Costar Biochemical Ltd. represented China’s domestic pyridine industry in requesting that the Ministry of Commerce of the People’s Republic of China potentially implement an anti-dumping tariff on Japanese and Indian pyridine imports. On November 20, 2013, the Chinese Ministry of Commerce decided to implement an anti-dumping tariff on raw pyridine imports from India and Japan, which was to take effect on November 21, 2013 and last for at least five years.

Pyridine essential component in agricultural and medicinal compounds

Pyridine is an agricultural compound and a key ingredient in medicine, and it is also an important ingredient in chemical engineering, animal feed, food additives, and radial tire production. In medical and industrial fields, pyridine can be used as a special solvent. As a chemical agent, pyridine can be used to produce a wide range of agricultural chemicals, such as pesticides, disinfectants, weed killers, plant growth regulators, vermin killer, as well as other types of chemical products. It may also be used to produce paraquat, diquat, and chlorpyrifos, and in medicinal fields it may be used to produce anti-tumor medicine, psychiatric medicine, as well as other medicines. At the time when the anti-dumping tariffs were implemented, the Chinese pyridine industry was experiencing enormous pressure due to a sharp drop in price of Indian and Japanese imported pyridine, which severely threatened the future of the Chinese industry.

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