U.S. Government Announces Preliminary Duty On Chinese Imports Of Calcium Hypochlorite

Lonza receives news of a 71.72% countervailing duty rate as a result of its petition on behalf of the domestic Cal Hypo industry

On 20 May 2014, the U.S. Department of Commerce (DOC) announced a preliminary countervailing duty rate of 71.72% on all imports of calcium hypochlorite (Cal Hypo) from China. This action was a result of a petition filed in December 2013 by Arch Chemicals, Inc., a Lonza company, on behalf of the domestic Cal Hypo industry.

The petition began the process for imposing duties to offset the advantage Chinese manufacturers have obtained in the market through unfair pricing and government subsidies for calcium hypochlorite, a common sanitizer used in pools and spas, among other uses.

The DOC instructed U.S. Customs and Border Protection to require importers of Chinese calcium hypochlorite to pay cash deposits for imports from 26 May. A final rate will be announced by the DOC later this year. In addition, the DOC is investigating antidumping allegations and will announce a preliminary antidumping rate in July.

The preliminary countervailing duty rate of 71.72% was calculated based on adverse facts available. The DOC identified three mandatory respondents in the investigation: Hubei Dinglong Chemical Co., Ltd. (Hubei Dinglong), W&W Marketing Corporation (W&W), and Tianjin Jinbin International Trade Co., Ltd. (Tianjin). The DOC stated in its decision memorandum that Hubei Dinglong and W&W “withheld information that [had] been requested by the [DOC],” and that all three mandatory respondents “refused to participate in the investigation...and therefore significantly impeded [it].”

Countervailing duties are designed to provide U.S. businesses and workers a mechanism to seek relief from the unfair advantages foreign producers gain through the receipt of subsidies from their government, in contravention of treaty obligations. This action by the DOC proves what Lonza has been claiming: that Chinese producers are importing calcium hypochlorite into the United States unfairly to the detriment of U.S. companies and jobs. Lonza will continue to take the actions necessary to protect its interests from unfair competition.

About Lonza
Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets. We harness science and technology to create products that support safer and healthier living and that enhance the overall quality of life.

Not only are we a custom manufacturer and developer, Lonza also offers services and products ranging from active pharmaceutical ingredients and stem-cell therapies to drinking water sanitizers, from the vitamin B compounds and organic personal care ingredients to agricultural products, and from industrial preservatives to microbial control solutions that combat dangerous viruses, bacteria and other pathogens.

Founded in 1897 in the Swiss Alps, Lonza today is a well-respected global company with more than 40 major manufacturing and R&D facilities and approximately 10,000 employees worldwide. The company generated sales of about CHF 3.6 billion in 2013 and is organized into two market-focused segments: Pharma&Biotech and Specialty Ingredients. Lonza’s stock is publicly traded on the Swiss and the Singapore stock exchanges. For more information, visit www.lonza.com.