On March 14, 2024, Corteva Agriscience LLC (Petitioner) filed an antidumping duty (AD) and countervailing duty (CVD) petitioners on 2,4-Dichlorophenoxyacetic Acid (2,4-D) from the People’s Republic of China and India.
Petitioner alleges that imports of 2,4-D from China and India have caused material injury and threaten additional material injury to the US domestic industry because they are sold in the United States at less-than-fair-value, and they benefit from countervailable subsidies.
AD/CVD duties may be imposed if the US Department of Commerce (DOC) determines that such dumping and subsidization is occurring and if the US International Trade Commission (ITC) determines that there is “material injury” (or the threat thereof) by reason of the dumped and/or subsidized imports.
If the investigations are affirmative, importers of 2,4-D from China and India will be liable for any potential AD/CVD duties imposed.
Scope of Investigations
Per the petition, 2,4-D is an herbicide active ingredient that contains carbon, hydrogen, chlorine, and oxygen. In its pure form, 2,4-D acid is a dry crystalline solid. For practical application as an herbicide or plant-growth regulator, 2,4-D must be formulated to readily disperse upon application and to suitably mix with water. Accordingly, it is converted into various derivative forms, including salts, and esters. Products containing 2,4-D derivatives, like its salt and ester forms, are blended with other active ingredients, chemicals and/or water to create end-use crop protection products. Over 1,500 herbicide products contain 2,4-D as an active ingredient. Products containing 2,4-D may come in the form of liquids (concentrated or ready-to use), dusts, or granules.
2,4-D is a synthetic auxin and growth regulator. A synthetic auxin is a type of herbicide active ingredient that mimics auxin, a plant hormone that regulates many aspects of growth. Synthetic auxin herbicides bind to hormone receptors in plant cells and cause a chain of events within the plant that leads to rapid and uncontrolled growth. These herbicides specifically cause vascular tissue cells that carry water and nutrients to divide and grow at such a rate as to cause stem curl-over, leaf withering, and eventual plant death.
2,4-D is used for broadleaf weed control in agricultural and nonagricultural settings, and it is registered for use in both terrestrial and aquatic environments. Registered uses include application to field, fruit, and vegetable crops, including soybeans, corn, wheat, barley, oats, sugar cane, rice, citrus, hazelnuts, stone fruits, grapes, nuts, and asparagus. It is registered for use on pastures and rangelands, residential lawns, roadways, aquatic sites, croplands, and forestry applications.
The merchandise covered by the scope this investigation is 2,4-D, which has the Chemical Abstracts service (CAS) registry number of 94-75-7 and the chemical formula C8H6Cl2O3. The 2,4-D component of any derivative products of 2,4-D, including but not limited to, amine salt and ester forms of 2,4-D are covered by the scope of the order.
Salt and ester forms of 2,4-D include, but are not limited to, 2,4-D salt (CAS 2702-72-9), 2,4-D diethanolamine salt (CAS 5742-19-8), 2,4-D dimethyl amine salt (CAS 2008-39-1), 2,4-D-isopropylamine salt (CAS 5742-17-6), 2,4-D tri-isopropanolamine salt (CAS 32341-80-3), 2,4-D BEE (CAS 1929-73-3), 2,4-D 2-ethylhexylester (CAS 1928-43-4), and 2,4-D -isopropylester (CAS 94-11-1). All 2,4-D, as well as the 2,4-D component of its salt and ester forms, is covered by the scope irrespective of purity, particle size, or physical form.
The conversion of a 2,4-D salt or ester from a subject 2,4-D acid, or the formulation of non-subject merchandise with the subject 2,4-D, its salts, and its esters in the country of manufacture or in a third country does not remove the subject 2,4-D, its salts, or its esters from the scope. For any such formulations, only the 2,4-D, 2,4-D salt, and 2,4-D ester components of the mixture is covered by the scope of the order.
Imports of 2,4-D from China and India may be classified under subheading 2918.99.2010, 2808.93.0500, and 3808.93.1500 of the Harmonized Tariff Schedule of the US (HTSUS).
Estimated AD Margins
The Petitioner alleges the following dumping margins exist:
- China: Antidumping rates of 143.73-388.53% ad valorem.
- India: Antidumping rates 62.55% ad valorem.
Estimated Key Dates of Interest to Exporters and Importers
The following are estimated key dates for these investigations, once initiated by the DOC and the ITC:
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