Sinopec wins preliminary PVA anti-dumping ruling

On March 9, the European Commission issued an announcement deciding not to implement temporary anti-dumping measures against PVA products originating in China. This is the first anti-dumping case against chemical products that Sinopec has won since the new EU regulations were promulgated in 2017.

On July 30, 2019, Kuraray Japan filed a complaint, and the European Commission issued a case filing announcement establishing an anti-dumping investigation on polyvinyl alcohol (PVA) originating in China. According to the new EU Regulation "Basic Regulations on Anti-dumping and Anti-subsidy" (2017 No. 2321), the procedures for responding to this anti-dumping case are more complicated than before, and the results are uncertain. Enterprises, industry associations, lawyers and clients are required to work in concert and be meticulous Respond to all stages of planning.

The anti-dumping response to the lawsuit was the result of the coordinated response of the four directly affiliated enterprises under the overall arrangement of Sinopec. Under the guidance of the production and operation department of the headquarters and Chemical Sales Co., Ltd., the Central China Chemical Sales Company led three companies, Chuanwei Chemical, Shanghai Petrochemical, and Ningxia Nenghua, to set up a joint anti-dumping responding team. It took 8 months to prepare for anti-dumping, Deal with and coordinate various tasks, and lay a solid foundation for anti-dumping success.

The European market accounts for nearly 50% of Sinopec's PVA exports. The success or failure of EU anti-dumping cases will have a profound impact on Sinopec's PVA exports in the future. As the main PVA export company, Huashang Huazhong Branch, in accordance with the requirements of Chemical Sales Co., Ltd., set up an anti-dumping response working group before filing the case, and actively mobilized the human resources of all parties to participate in the response to the lawsuit.

During the response period, Huashang Huazhong Branch made every effort to the team members to work overtime to prepare tens of thousands of export documents, collect and review each case-related data, establish a complete and detailed verification ledger, and provide informative data support for the anti-dumping questionnaire. The response team completed the sampling information questionnaire in advance in August 2019. At the end of September, it joined the China Minmetals Chemical Import and Export Chamber of Commerce to attend the first hearing of the European Commission. It mainly explained the defense of PVA exports and the relationship between substantial damage and threat of substantial damage. Opinions, and strive to obtain a consensus view of the European Commission on dumping damage. From October to December 2019, the European Commission carried out on-site inspections of four companies, namely Huazhong Zhonghua, Chuanwei Chemical, Shanghai Petrochemical, and Ningxia Nenghua. Huazhong Zhonghua actively led and assisted brother companies to participate in the inspection. The factory inspection involved ERP system sales, PCN material code, price, packaging, production constraints, sales overview, customer name, export tax rebate and other issues are addressed throughout the process, and assistance is provided to ensure that the verification system information is consistent with the submission of questionnaires and original voucher data; during verification The site responded to every export-related question carefully, answered reasonably and was highly recognized by the Commission's investigator.

In the anti-dumping response process, in addition to Sinopec's internal collaboration, it is important to obtain on-site support from customers on the front line of the EU market. Since the disposal of Huazhong Branch in Anti-dumping, it has been preparing various countermeasures intensively on the one hand, and actively pushing downstream European customers to do a lot of lobbying and proof work, and finally obtained the consensus views of EU member states' trade representatives on dumping damage.

The initial success of the PVA anti-dumping campaign has accumulated valuable experience for Sinopec and even domestic companies in dealing with more complex anti-dumping cases in the future, and has played a positive role in promoting the broader overseas market for domestic PVA exports.

Source from cnpc