The European Commission has initiated an anti-dumping proceeding concerning imports of 1,4-Butanediol originating in the USA, China and Saudi Arabia (Official Journal of the European Union of 06.06.2025, C/2025/3135). EU anti-dumping duties on goods originating in the USA are rare. US manufacturers, like EU manufacturers and importers, have the opportunity to comment on the proceedings. Affected US manufacturers can seek an individual anti-dumping duty rate, which may be lower than the general rate. Individual exemptions from anti-dumping duties are also possible.

 

Anti-dumping duties are an important European Union instrument used to protect the Union market from damage. The duties are targeted at imports of dumped goods from non-EU countries. Imports are subject to anti-dumping duties in order to guarantee the competitiveness of goods produced in the Union market. The dumping margin is calculated by comparing prices in non-EU countries with prices when exporting to the EU. EU anti-dumping measures mostly affect goods from China. Goods from Southeast Asia (e.g. India, Indonesia and Malaysia) are also often affected. Anti-dumping measures for goods from the US are, however, rare.

 

The proceeding was initiated at the request of the Union industry for 1,4-Butanediol. Manufacturers representing a significant proportion of the total Union production are entitled to represent the Union industry. The industry representative submitted evidence of dumping, which the European Commission regarded as sufficient to initiate the proceeding. The specific allegation, concerning imports of goods originating in the United States, is that the ex-works price of the goods for export to the EU is below the market price in the United States. This, however, does not automatically constitute a determination of dumping. These findings are reserved for the upcoming proceeding.

 

The product concerned is currently classified under CN codes 2905 39 26 and 2905 39 28 and is generally listed under CAS number 110-63-4 and EC number 203-786-5. 1,4-Butanediol is an intermediate product in the chemical industry and is used as a starting material for plastics, among other things.

 

The European Commission will investigate imports from the three countries concerned during the period from 1 January 2024 to 31 December 2024. With regard to goods originating in China and Saudi Arabia, domestic prices will not automatically be used as a basis without further consideration due to significant market distortions or lack of reliable data. Instead, market values for the goods will be calculated. Ultimately, the European Commission will look at the development of the Union market since 1 January 2021 to investigate whether the Union market has sustained any damage. 

 

Provisional anti-dumping duties may be introduced during the proceeding. The European Commission also intends to order customs registration of imports. After the introduction of anti-dumping duties, goods that have been registered by customs, upon importation, may also be subject to these duties. Customs registration is the responsibility of the Union’s Member States.

 

Interested parties may submit comments during the proceeding. Such interested parties can be, for example, US manufacturers, EU manufacturers and importers. The motivation for submitting comments may vary depending on the party concerned. Since the Union industry has lodged the request to initiate the proceedings, it naturally has an interest in the introduction of anti-dumping duties. However, this does not necessarily apply to all Union manufacturers. Interested parties may include EU purchasers of the product concerned. They, of course, must expect significantly higher prices if anti-dumping duties are eventually introduced.

 

US manufacturers also have a significant interest in participating in the proceeding, during the course of which, it is possible to work towards the determination of an individual dumping margin. Under certain circumstances, individual anti-dumping duty rates may be significantly lower than the general dumping margin. The dumping margin is an essential criterion for determining the level of anti-dumping duty rates. Participation in the proceedings may therefore lead to some US manufacturers gaining a competitive advantage over other US manufacturers.

 

Interested parties may submit comments within 37 days of publication of the initiation of the proceeding on 6 June 2025. US manufacturers are free to provide evidence to the effect that no difference exists between domestic prices and prices when exported to the Union.