Today (14 August 2009), the Australian Customs and Border
Protection Service ("Customs") has published a notice
confirming that it had resolved to initiate an investigation into
alleged dumping of silicone emulsion concrete admixtures products
("SECA") produced in the USA. The initiation application
was lodged by Tech-Dry Building Protection Systems Pty Ltd
("Tech-Dry") which claims to be the sole manufacturer of
the products in Australia.
The products have been identified as classified to subheading
3824.40.00 of Schedule 3 of the Customs Tariff Act 1995
and are currently imported duty free. It is claimed that SECA is a
higher value product than traditional concrete admixtures such as
fatty acid types of concrete admixtures. SECA is used for water
repellency and efflorescence control application for concrete or
similar products including concrete block, concrete paving,
retaining wall units, concrete roof tiles and pre-cast or
pre-stressed concrete. The product also helps increase the strength
and improve the colour vibrancy of concrete.
Customs notes that while the application is taken to cover any
goods meeting the description provided in the initiation notice,
Tech-Dry makes particular reference to goods exported from the USA
manufactured by BASF Construction Chemicals USA ("BASF")
which is currently marketed under the name 'Rheopel Plus".
Tech-Dry states that SECA was developed in Australia by the company
and introduced into Germany for the purposes of sale to concrete
manufacturers. Tech-Dry claims that a German chemical company
instead began manufacturing SECA and was subsequently bought out by
another company what was in turn bought our by BASF which is now
manufacturing the product in the USA.
Tech-Dry alleges that the products exported from the USA to
Australia at prices below their normal values and have caused
material injury to the Australian industry through:
lost market sales volume;
lost market share;
price depressions; and
reduced profits and profitability.
In its Consideration Report, Customs notes that the data stored
in the Customs import database does not permit accurate
identification of the products because of the broad nature of the
tariff classification and the descriptions indeed in that
classification. Therefore, Customs has relied on Tech-Dry's
estimates of market size and market share for the purpose of market
The notice released by Customs invites interested parties to
provide submissions concerning the application before close of
business on 23 September 2009.
As many of you will be aware, we have extensive experience in
acting in anti-dumping measures whether for Australian industry in
the initiation of measures or acting for overseas exporters and
Australian importers of goods the subject of such anti-dumping or
countervailing action. As always, we will be pleased to assist
parties in relation to this important investigation.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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