Ministry of Commerce released announcement No. 49, 2003 on Sep 9, 2003, deciding to impose anti-dumping duty on SBR originating from Russia, the Republic of Korea and Japan. The anti-dumping duty rate on Hyundai Petrochemical Co., Ltd. was stipulated to be 19%.

Hyundai Petrochemical Co., Ltd. submitted applications to Ministry of Commerce on Oct 9, 2004 for midterm review of dumping and dumping profit margin. In accordance with preliminary evidences, Ministry of Commerce release announcement of case registration, deciding to carry out midterm review of dumping and dumping profit margin on SBR anti-dumping measures that was applied to Hyundai Petrochemical Co., Ltd.. The investigation scope included normal value, export price and dumping profit margin of the investigated commodity, the tariff numbers of which were 40021911, 40021912 and 40021919。

In accordance related regulations of article 50 of Anti-dumping Regulations of the People’s Republic of China, Provisional Regulations of Midterm Review of Dumping and Dumping Profit Margin of Ministry of Commerce and decisions of Tariff Committee of the State Council, related matters are now announced as follows:

LG Daesan Petrochemical Ltd. is allowed to succeed the anti-dumping measures that are applied to Hyundai Petrochemical Co., Ltd., and the tax rate is adjusted to v in accordance with investigation results.

As from release of this announcement, when exporting investigated commodities to China mainland in name of “Hyundai Petrochemical Co., Ltd.”, Korean exporters should pay tax in line with a rate of 17%, which is equal to that of “other Korean companies” in the final arbitration of anti-dumping investigation. The formula to calculate the tax is: sum of anti-dumping tax equals to after-tax price multiply rate of anti-dumping duty.

The decision takes effect as from Dec 13, 2005.

Appendix: Ministry of Commerce Arbitration of Midterm Review on Styrene-butadiene rubber (SBR) Originating from Korea.

Ministry of Commerce
Dec 13, 2005