Methylene Diphenyl Diisocyanate (MDI) from China
On February 12, 2025, new antidumping (AD) and countervailing duty (CVD) petitions were filed against imports of methylene diphenyl diisocyanate (“MDI”) from China. MDI is a class of isocyanates derived from aniline. MDI is a versatile chemical intermediate that is used as an input in a wide range of applications, including the production of rigid foam for various types of insulation; flexible foam used in car seats, bedding, and furniture; and for coatings, adhesives, sealants, and elastomers. The petition was filed by BASF Corporation and Dow Chemical Company. These large multinational corporations are primarily targeting the Chinese producer Wanhua Chemical Group, which is the world’s largest MDI producer.
MDI was already subject to the original Section 301 China tariffs (25%) imposed in President Trump’s first term. MDI also will be subject to the additional 10% tariff that President Trump just announced for all Chinese imported products. The domestic industry now seeks additional AD and CVD duties to be added on top of these tariffs to further increase the price of Chinese imported MDI.
These AD/CVD investigations will be conducted by two federal agencies. The International Trade Commission (“ITC”) will investigate whether the subject imports have materially retarded the establishment of the domestic industry. The DOC will investigate whether the subject imports are being sold to the United States at less than fair value (“dumping”) or benefit from unfair government subsidies. Both agencies have to make affirmative findings of material retardation (ITC) or of dumping or subsidies (DOC) in order for AD/CVD duties to be imposed on the subject imports.
Scope
The petition included the following proposed scope definition:
The merchandise subject to this petition is aromatic polyisocyanate material whose composition includes two or more isocyanate groups (i.e., functional group containing a nitrogen atom, a carbon atom, and anoxygen atom bonded together (- NCO)) attached to one or more benzene rings (i.e., a flat, symmetrical molecule made up of six carbon atoms arranged in a hexagonal ring and has the chemical formula C6H6)that are joined by methylene bridges (i.e., a carbon atom bound to two hydrogen atoms (−CH2− )and connected by single bonds to two other distinct atoms in the rest of the molecule). These products are commonly called Polymeric, Monomeric, or Modified Methylene Diphenyl Diisocyanate (“MDI”) and also known as Methylene bisphenyl isocyanate, 4,4’-Diphenylmethane diisocyanate, Methylene di-p-phenylene ester of isocyanic acid, Methylene bis(4-phenyl isocyanate), among others. 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 petition 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 10weight percentage.
For MDI that enter as part of a system with separately packaged 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 investigations 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 investigations.
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 3506.91.5000, 3815.90.5000, 3824.99.2900, 3824.99.9397, 3909.50.5000, 3911.90.4500,3920.99.5000, and 3921.13.5000. The HTSUS subheadings are provided for convenience and customs purposes only; the written description of the scope is dispositive.
Alleged AD/CVD Margins
Petitioners calculated an estimated dumping margins ranging from 305.81% to 507.13%.
Petitioners did not provide any specific subsidy margin calculations.
Named Exporters/ Producers
Petitioners included a list of companies they contend are producers and exporters of the subject merchandise.
Named U.S. Importers
Petitioners included a list of companies they contend are U.S. importers of the subject merchandise.
Estimated Schedule of Investigations
February 12, 2025 – Petitions filed
March 4, 2025 – DOC initiates investigation
March 5, 2025 – ITC Staff Conference
March 31, 2025 – ITC preliminary determination
July 12, 2025 – DOC CVD preliminary determination (assuming extended deadline) (5/8/25 – unextended)
September 10, 2025 – DOC AD preliminary determination (assuming extended deadline)
(7/22/25 – unextended)
January 23, 2026 – DOC AD/CVD final determinations (extended)
March 9, 2026 – ITC final determination (extended)
March 16, 2026 – DOC AD/CVD orders issued (extended)
Conclusion
If your company is named as an exporter, producer, or importer in these petitions, now is the time to act. AD/CVD investigations move quickly, and failing to respond in a timely and strategic manner could result in the highest possible duties being applied to your imports. Engaging experienced trade counsel early in the process can help mitigate your risks, develop a strong defense, and ensure your interests are protected.
If you need guidance on how to proceed, please do not hesitate to reach out to me for any assistance.
