OREANDA-NEWS. December 26, 2007. The U.S. Department of Commerce published a preliminary decision determining a 0% dumping margin on Eurochem’s urea imports to the U.S.A. In case of final approval of this decision, Eurochem will be able to export urea to the U.S.A. free of antidumping duties, the press service of Eurochem reports.

Individual review of antidumping measure for EuroChem was initiated on February 27, 2007 on the basis of a urea shipment to the USA at the end of 2006. The company needed to prove lack of affiliation with the Soviet-time urea exporters to the U.S.A. and obtain an individual duty as a new exporter. Despite unprecedented pressure from the American urea manufactures Department of Commerce was neutral and in its decision relied exclusively on the antidumping legislation. Very likely its decision took into account unreasonableness of import barriers on mineral fertilizers for the U.S. economy and its consumers.

EuroChem has fully participated in the antidumping review. It is important to note that EuroChem’s position was supported by the Russian Ministry of Economic Development and Trade, representatives of American farmers associations and members of the U.S. House of Representatives and Senate, who are devoted supporters for liberalization of trade in general and in mineral fertilizers in particular.

The decision points out that the antidumping review is extraordinarily complicated and in order to fully examine materials submitted by the parties to the review Department of Commerce extended final decision deadline to a maximum of 150 days.  The final verdict shall be out not later than May 15, 2008.

On July 14, 1987 U.S. International Trade Commission (“USITC”) and U.S. Department of Commerce have adopted an order introducing an antidumping duty of 68,26% on urea from the USSR.  Following the break-up of the Soviet Union, the antidumping duty order on solid urea was transferred to the individual members of the CIS.  As of today, the antidumping duty applies to urea from Russia (68.26%) and Ukraine (53.23%).

In 1999 and 2005, the USITC conducted two sunset reviews of the antidumping measure (which are carried every five years at the request of domestic producers if they wish to seek the continuation of the antidumping measure). EuroChem, with support of other Russian urea producers, participated in the 2005 sunset review.  In December of 2005, the USITC decided (3 votes “for” and 3 votes “against”) to maintain the antidumping duty for another five years. A majority vote was required to repeal the duty (tie votes mean that the antidumping measure continues).  ITC’s order has been appealed by Russian producers to the U.S. Court of International Trade, where the matter is still in litigation.