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
GAIN Report Number: MX1063
Inedible Soy Oil Tariff Reduction
Oilseeds and Products
Agriculture in the Economy
Policy and Program Announcements
Trade Policy Monitoring
W. Garth Thorburn II
Benjamin Juarez and Adam Branson
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).
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)
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
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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
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.
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