Notice2025-17904
Methylene Diphenyl Diisocyanate From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less-Than-Fair-Value, Postponement of Final Determination, and Extension of Provisional Measures
Primary source
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Published
September 16, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that methylene diphenyl diisocyanate (MDI) from the People's Republic of China (China) is being, or is likely to be, sold in the United States at less-than-fair-value (LTFV). The period of investigation (POI) is July 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 90 Issue 177 (Tuesday, September 16, 2025)</title>
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[Federal Register Volume 90, Number 177 (Tuesday, September 16, 2025)]
[Notices]
[Pages 44629-44632]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17904]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-200]
Methylene Diphenyl Diisocyanate From the People's Republic of
China: Preliminary Affirmative Determination of Sales at Less-Than-
Fair-Value, Postponement of Final Determination, and Extension of
Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that methylene diphenyl diisocyanate (MDI) from the People's
Republic of China (China) is being, or is likely to be, sold in the
United States at less-than-fair-value (LTFV). The period of
investigation (POI) is July 1, 2024, through December 31, 2024.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable September 16, 2025.
FOR FURTHER INFORMATION CONTACT: Kayden Jenson or Christopher Maciuba,
AD/CVD Operations, Office II, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-0967 or (202)
482-0413, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
773(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on March 11,
2025.\1\ On July 14, 2025, Commerce postponed the deadline to issue the
preliminary determination of this investigation until September 10,
2025.\2\
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\1\ See Methylene Diphenyl Diisocyanate from the People's
Republic of China: Initiation of Less-Than-Fair-Value Investigation,
90 FR 11710 (March 11, 2025) (Initiation Notice).
\2\ See Methylene Diphenyl Diisocyanate from the People's
Republic of China: Postponement of Preliminary Determination in the
Less-Than-Fair-Value Investigation, 90 FR 31163 (July 14, 2025).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics included in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Methylene
Diphenyl Diisocyanate from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is MDI from China. For a
complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice. Therefore, Commerce is not preliminarily modifying
the scope language as it appeared in the Initiation Notice. See the
scope in Appendix I to this notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. In addition, pursuant to sections 776(a) and
(b) of the Act, Commerce preliminarily has relied upon facts otherwise
available, with adverse inferences, for the China-wide entity. For the
non-examined separate rate companies, Commerce has preliminarily relied
on the simple average of the dumping margins alleged in the
Petition.\6\ For a full description of the methodology underlying
Commerce's preliminary determination, see the Preliminary Decision
Memorandum.
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\6\ Id., and accompanying Initiation Checklist at ``Estimated
Margins.''
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Separate Rates
We preliminarily granted a separate rate to certain respondents
that we did
[[Page 44630]]
not select for individual examination.\7\ In calculating the rate for
non-individually examined separate rate respondents in a non-market
economy LTFV investigation, Commerce normally looks to section
735(c)(5)(A) of the Act, which pertains to the calculation of the all-
others rate in a market economy LTFV investigation, for guidance.
Pursuant to section 735(c)(5)(A) of the Act, normally this rate shall
be an amount equal to the weighted-average of the estimated weighted-
average dumping margins established for those companies individually
examined, excluding zero and de minimis dumping margins, and any
dumping margins based entirely under section 776 of the Act. The
statute further provides that, where all margins are zero, de minimis,
or based entirely on facts available, Commerce may use ``any reasonable
method'' for assigning the rate to non-selected respondents.\8\
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\7\ See Preliminary Decision Memorandum for additional details.
\8\ See section 735(c)(5)(B) of the Act.
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In cases where no weighted-average dumping margins other than zero,
de minimis, or determined wholly under section 776 of the Act have been
established for individually examined entities, in accordance with
section 735(c)(5)(B) of the Act, Commerce typically calculates a simple
average of the dumping margins alleged in the petition and applies the
result to all other separate rate entities not individually
examined.\9\ The simple average of the dumping margins alleged in the
Petition in this investigation is 376.12 percent.\10\ See the table
below in the ``Preliminary Determination'' section of this notice.
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\9\ See, e.g., Certain Pea Protein from the People's Republic of
China: Preliminary Affirmative Determination of Sales at Less Than
Fair Value, Preliminary Affirmative Determination of Critical
Circumstances, Postponement of Final Determination, and Extension of
Provisional Measures, 89 FR 10038 (February 13, 2024), unchanged in
Certain Pea Protein from the People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value and Final
Affirmative Critical Circumstances Determination, 89 FR 55559 (July
5, 2024).
\10\ See Petition SQR at Exhibit II-S16.
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Combination Rates
In the Initiation Notice, Commerce stated that it would calculate
producer/exporter combination rates for the respondents that are
eligible for a separate rate in this investigation.\11\ Policy Bulletin
05.1 describes this practice.\12\
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\11\ See Initiation Notice, 90 FR at 11714.
\12\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at <a href="https://enforcement.trade.gov/policy/bull05-1.pdf">https://enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Estimated
weighted-average
Producer Exporter dumping margins
(percent)
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Covestro Polymers (China) Co., Covestro Polymers 376.12
Ltd. (China) Co., Ltd.
Wanhua Chemical Group Co., Ltd.. Shandong Mingko 376.12
Co., Ltd.
China-wide Entity............... ................... * 511.75
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* This rate is based on facts available with adverse inferences.
Suspension of Liquidation and Cash Deposit Requirements
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) for
the producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
Chinese producers/exporters of merchandise under consideration that
have not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the China-wide entity; and (3) for all third-
country exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the Chinese producer/exporter combination (or the China-wide entity)
that supplied that third-country exporter.
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b). However, because Commerce
preliminarily relied upon information from the Petition in its
preliminary determination, there are no calculations to disclose.
Verification
Because the mandatory respondent in this investigation is not
eligible for a separate rate, Commerce does not intend to conduct
verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 30
days after the date of publication of this preliminary determination in
the Federal Register. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed no later than five days after the date for
filing case briefs.\13\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing each issue; and (2) a table of authorities.\14\
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\13\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\14\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total,
[[Page 44631]]
including footnotes. In this investigation, we instead request that
interested parties provide at the beginning of their briefs a public,
executive summary for each issue raised in their briefs.\15\ Further,
we request that interested parties limit their executive summary of
each issue to no more than 450 words, not including citations. We
intend to use the executive summaries as the basis of the comment
summaries included in the issues and decision memorandum that will
accompany the final determination in this investigation. We request
that interested parties include footnotes for relevant citations in the
executive summary of each issue. Note that Commerce has amended certain
of its requirements pertaining to the service of documents in 19 CFR
351.303(f).\16\
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\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain:
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of the issues to be discussed. If a request for a hearing is
made, Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm the date, time, and location of the
hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
duty determination be accompanied by a request for extension of
provisional measures from a four-month period to a period not more than
six months in duration.
On August 28, 2025, Wanhua Singapore and Wanhua Ningbo requested
that Commerce postpone the final determination and that the provisional
measures be extended to a period not to exceed six months,
respectively.\17\ Pursuant to section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii), because: (1) the preliminary determination is
affirmative; (2) the requesting exporters account for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, Commerce
will make its final determination no later than 135 days after the date
of publication of this preliminary determination.
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\17\ See Wanhua Singapore and Wanhua Ningbo's Letter, ``Wanhua's
Request to Postpone the Final Determination,'' dated August 28,
2025.
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U.S. International Trade Commission (ITC) Notification
In accordance with section 733(f) of the Act, Commerce will notify
the ITC of its preliminary determination of sales at LTFV. If the final
determination is affirmative, the ITC will determine before the later
of 120 days after the date of this preliminary determination or 45 days
after the final determination whether imports of the subject
merchandise are materially injuring, or threaten material injury to,
the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 773(f) and 777(i)(1) of the Act, and 19 CFR 351.205(e).
Dated: September 10, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation is methylene
diphenyl diisocyanate (MDI), which is an aromatic polyisocyanate
material whose composition includes two or more isocyanate groups
(i.e., functional group containing a nitrogen atom, a carbon atom,
and an oxygen atom bonded together (-NCO)) attached to one or more
benzene rings (i.e., flat, symmetrical molecule made up of six
carbon atoms arranged in a hexagonal ring and has the chemical
formula C<INF>6</INF>H<INF>6</INF>) that are joined by methylene
bridges (i.e., a carbon atom bound to two hydrogen atoms (-
CH<INF>2</INF>-) and connected by single bonds to two other distinct
atoms in the rest of the molecule). MDI is commonly called
Polymeric, Monomeric, or Modified MDI and may also be referred to
under other names, including Methylene bisphenyl isocyanate, 4,4'-
Diphenylmethane diisocyanate, Methylene di-p-phenylene ester of
isocyanic acid, Methylene bis(4-phenyl isocyanate), and
polymethylene polyphenylene isocyanate. MDI is normally associated
with Chemical Abstracts Service (CAS) registry numbers 9016-87-9,
101-68-8, 5873-54-1, 2536-05-2, 1689576-89-3, 25686-28-6, 26447-40-
5, and 39310-05-9, but several others are also used.
MDI ranges in physical form from low viscosity liquids to
solids. MDI is covered by the scope of this investigation
irrespective of whether it has gone through a distillation process
and regardless of acid content, reactivity, functionality, freeze
stability, physical form, viscosity, grade, purity, molecular
weight, or packaging.
MDI may contain additives, such as catalysts, solvents,
plasticizers, antioxidants, fire retardants, colorants, pigments,
diluents, thickeners, fillers, softeners, toughening agents. The
scope does not include mixtures of MDI with other materials, when
the combined MDI component comprises less than 40 percent of the
total weight of the mixture.
MDI may be partially reacted with itself, polyol, or polyamines,
and retain MDI component that has not fully chemically reacted so as
to convert it into a different product no longer containing
isocyanate groups. These products are known as homopolymer,
uretonimine MDI, carbodiimide MDI, or prepolymers. The scope does
not include partially reacted MDI when its NCO content is less than
10 weight percentage.
For MDI that enter as part of a system with separately packaged
resin consisting mostly of a chemical compound that has an OH
reactive group, including polyol, only the MDI portion of the system
is included in the scope. The scope does not include any separately
packaged polyol that would not fall within the scope if entered on
its own.
The scope includes merchandise matching the above description
that has been processed in a third country, including by
commingling, diluting, introducing or removing additives, or
performing any other processing that would not otherwise remove the
merchandise from the scope of the investigation if performed in the
subject country.
The scope also includes MDI that is commingled or blended with
MDI from sources not subject to this investigation. Only the subject
component of such commingled products is covered by the scope of
this investigation.
This merchandise is currently classifiable under Harmonized
Tariff Schedule of the United States (HTSUS) subheadings
2929.10.8010 and 3909.31.0000. Subject merchandise may also be
entered under subheadings 3824.99.2600, 3909.50.1000, 3909.50.2000,
3909.50.5000, 3824.99.2900,
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3506.91.5000, 3911.90.4500, 3921.13.5000, and 3920.99.5000. The
HTSUS subheadings are provided for convenience and customs purposes
only; the written description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Affiliation and Single Entity Treatment
V. Discussion of the Methodology
VI. Recommendation
[FR Doc. 2025-17904 Filed 9-15-25; 8:45 am]
BILLING CODE 3510-DS-P
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