On 16 February 2018, ITAC initiated a duty increase on phosphoric and polyphosphoric acid classified under tariff subheading 2809.20.10.
These products were previously classified under tariff subheading 2809.20, however, from 1 January 2018, the tariff code was split into two (2809.20.10 and 2809.20.90).
If successful, the duty structure will be change from free of duty to 10% ad valorem, only on tariff code 2809.20.10.
As reasons for its application, the applicant (Chemical Initiatives) provided the following reasons:
- China is one of the few countries that produce yellow phosphorous, a primary raw material used in manufacturing the subject product. However, years ago China imposed a 20% export duty on yellow phosphorus. This provides a price advantage to phosphoric acid and polyphosphoric acid imported from China.
- The duty protection is necessary to make Chemical Initiatives’ price competitive against imports.
- The current absence of duty protection threatens jobs and investments in the industry. One of the manufacturers of the subject has already mothballed its manufacturing plant.
Interested parties have until 12 March 2018 to respond to the application.