Inedible SoyOil Tariff Reduction for PVC

An Expert's View about Chemicals in Mexico

Last updated: 19 Aug 2011

The Secretariat of Economy (SE) issued a preliminary resolution in the Diario Official (Federal Register) on July 14, 2011, lowering the import duty on inedible soy oil, classified under the Harmonized Tariff System (HTS) as 1518.00.02, from the United States from 62.45 percent to 29.2 percent.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 8/3/2011 GAIN Report Number: MX1063 Mexico Post: Mexico Inedible Soy Oil Tariff Reduction Report Categories: Oilseeds and Products Agriculture in the Economy Policy and Program Announcements Trade Policy Monitoring Approved By: W. Garth Thorburn II Prepared By: Benjamin Juarez and Adam Branson Report Highlights: The Secretariat of Economy (SE) issued a preliminary resolution in the Diario Official (Federal Register) on July 14, 2011, lowering the import duty on inedible soy oil, classified under the Harmonized Tariff System (HTS) as 1518.00.02, from the United States from 62.45 percent to 29.2 percent. Interested parties have 30 working days from the effective date to supply additional arguments or evidence. Mexico?s calendar year 2010 imports of HTS 1518.00.02 equaled nearly U.S. $1.1 million, or 649 metric tons (MT). General Information: Introduction: This report summarizes a preliminary resolution published in Mexico?s Federal Register on July 14, 2011. According to this preliminary resolution, epoxidized soybean oil (ESO or ESBO) is used as a plasticizing agent or co-stabilizer in the formulation or composition of polyvinyl chloride (PVC) and copolymers, thereof. ESO prevents the degradation of PVC during the different transformation processes. In addition, ESO is used as a means of dispersing pigments and as an acid masking agent in soy-ink compounds. Table 1. Mexico: Imports of Epoxidized Animal or Vegetable Oils (HTS 1518.00.02) by Quantity (MT) and Value (Million U.S. Dollars) January ? December 2008 2009 2010 Country Volume Value Volume Value Volume Value World 629 1.156 407 0.717 649 1.096 United States 476 0.892 407 0.547 430 0.725 Germany 151 0.123 66 0.125 103 0.204 Spain 2 0.011 4 0.016 0 0 France 0 0 1 0.003 0 0 Argentina 0 0 0 0 44 0.060 Brazil 0 0 0 0 71 0.100 Data Source: Secretariat of Economy Disclaimer: This summary is based on a cursory review of the subject announcement and therefore should not, under any circumstances, be viewed as a definitive reading of the resolution in question, or of its implications for U.S. agricultural export trade interests. In the event of a discrepancy or discrepancies between this summary and the complete resolution or announcement as published in Spanish, the latter shall prevail. Title of Notice: Preliminary Resolution of the Automatic Review of the Antidumping Duty Imposed on Imports of Epoxidized Soybean-Oil Originating from the United States of America. This Commodity is Classified in the Tariff Code as 1518.00.02 of the General Import and Export Tax Law. Type of Resolution: Preliminary resolution of the review of anti-dumping duty imposed on imports of U.S.-origin inedible soy oil (HTS 1518.00.02) Important Dates 1. Publication Date: July 14, 2011 2. Effective Date: July 15, 2011 Products Affected: Inedible soy oil (HTS 1518.00.02) Agency in Charge: SE MX1063 Inedible Soy Oil Tariff Reduction Page 2 Final resolution of the antidumping investigation: On July 29, 2005, the SE issued its final decision on the antidumping case against exporters of U.S. inedible soy oil (HTS 1518.00.02 ). See 2005 GAIN Report MX5065 Final Decision in the Antidumping Case against U.S. Inedible Soy Oil. Compensatory Duty: SE imposed a duty of 62.45 percent because of the 2005 final resolution. Start of the review and revision process: On July 28, 2010, SE published news in the Federal Register that it initiated an effectiveness review of the antidumping duty on inedible soy oil. The review period was July 1, 2009 to June 30, 2010. During the review, SE compared the normal value with the export price of epoxidized soybean oil that was temporarily imported. SE determined that the discrimination margin should be calculated at 29.2 percent and that both the normal value and export price should be adjusted for inflation. Therefore, based on article 57 section I and articles 67 and 68 of the Foreign Trade Law, article 99 of the Rules of the Foreign Trade Law, and article 11.2 of Antidumping Agreement, SE issued the following decision. Decision: The decision is to continue the administrative review process and to amend the antidumping duty imposed on imports of epoxidized soybean oil from the United States, regardless of the country of origin, from 62.45 percent to 29.2 percent. The decision also states that for a period of 30 working days after the effective date of the Preliminary Resolution, interested parties can submit additional arguments and evidence under the third paragraph of Article 164 of the Rules of the Foreign Trade Law. The term for supplying additional arguments and evidence will conclude at 14:00 on the due date. For More Information FAS/Mexico Web Site: We are available at www.mexico-usda.com or visit the FAS headquarters' home page at www.fas.usda.gov for a complete selection of FAS worldwide agricultural reporting. FAS/Mexico YouTube Channel: Catch the latest videos of FAS Mexico at work http://www.youtube.com/user/ATOMexicoCity Useful Mexican Web Sites: Mexico's equivalent to the U.S. Department of Agriculture (SAGARPA) can be found at www.sagarpa.gob.mx , equivalent to the U.S. Department of Commerce (SE) can be found at www.economia.gob.mx and equivalent to the U.S. Food and Drug Administration (SALUD) can be found at www.salud.gob.mx. These web sites are mentioned for the readers' convenience but USDA does NOT in any way endorse, guarantee the accuracy of, or necessarily concur with, the information contained on the mentioned sites. MX1063 Inedible Soy Oil Tariff Reduction Page 3
Posted: 19 August 2011, last updated 19 August 2011

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