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Chinese officials said yesterday it had been decided in a final verdict anti-dumping duties would be imposed against imports of catechol from the European Union.

The Ministry of Commerce said in a release that importers of catechol from the EU will have to pay anti-dumping duties, ranging from 20 per cent to as much as 79 per cent beginning yesterday.

French Rhodia Organique SAS was found dumping at a margin of 20 per cent and Borregaard Italia SPA at 27 per cent, the ministry said.

All other EU companies who did not respond to the investigation will be imposed a duty of 79 per cent.

In the ministry's temporary ruling made on November 14 last year, French Rhodia Organique SAS was found dumping at a margin of 88 per cent, Borregaard Italia SPA at 50 per cent and all other EU firms at 92 per cent.

This is the first anti-dumping case that was started and primarily judged according to the new Anti-dumping Rule effective from January 1, 2002.

This is also the first time EU was targeted as a whole in China's anti-dumping investigation.

Catechol, or pyrocatechol, is a white, crystalline phenol, usually produced synthetically for use as an antiseptic, or a photographic developer.

The chemical product is listed under "2907.2910" in the tariffs of China's General Administration of Customs.

The Sanjili Chemical Industry Co Ltd in Lianyungang, a port city in East China's Jiangsu Province, applied for an anti-dumping investigation on January 14, 2002 on behalf of domestic industry.

The firm is the sole Chinese producer of catechol in 2000 and the first nine months of 2001.

The ministry accepted the application and initiated investigation into imports of catechol from the EU from January 1, 2001 to December 31, 2001.

The ministry found China's catechol consumption increased 50.88 per cent year-on-year last year and imports from the EU soared 72.90 per cent in the period, making up 91.90 per cent of China's total market.

At the same time, prices of catechol imports from the EU have kept a downward trend, which dropped by an average rate of 10 per cent in the 1999-2001 period.

The impact from EU catechol imports have constrained sales, market share and profits of the domestic industry.

The domestic industry had to leave 80 per cent of its equipment unused and suffered from a loss of 23.86 million yuan (US$2.88 million).

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