Ministry of Commerce Announcement No. 55 of 2026 Announces the End-of-Term Review Ruling on Countervailing Measures Applicable to Imported n-Propanol Originating from the United States

On November 17, 2020, the Ministry of Commerce issued Announcement No. 47 of 2020, deciding to impose countervailing duties on imported n-propanol originating in the United States starting from November 18, 2020, with a tax rate of 34.2%-37.7%, and an implementation period of 5 years.

On November 17, 2025, in response to the application of China's n-propanol industry, the Ministry of Commerce issued Announcement No. 75 of 2025, deciding to conduct an end-of-term review investigation on the anti-subsidy measures applicable to imported n-propanol originating in the United States starting from November 18, 2025.

The Ministry of Commerce investigated the possibility that subsidies for imported n-propanol originating in the United States would continue or reoccur if countervailing measures were terminated, as well as the possibility of damage to China’s n-propanol industry continuing or reoccurring, and made a review ruling in accordance with Article 47 of the Countervailing Regulations of the People’s Republic of China (hereinafter referred to as the “Countervailing Regulations”) (see attachment). The relevant matters are now announced as follows:

1. Review ruling

The Ministry of Commerce ruled that if countervailing measures are terminated, subsidies for imported n-propanol originating in the United States may continue or occur again, and the damage caused to China's n-propanol industry may continue or occur again.

2. Countervailing measures

According to Article 49 of the Countervailing Regulations, the Ministry of Commerce made recommendations to the Tariff Commission of the State Council on continuing to implement countervailing measures based on the investigation results. The Tariff Commission of the State Council made a decision based on the recommendations of the Ministry of Commerce. Starting from November 6, 2026, countervailing duties will continue to be levied on imported n-propanol originating in the United States for a period of 5 years.

The scope of products subject to countervailing duties is the product to which the original countervailing measures were applied, which is consistent with the product scope in the Ministry of Commerce Announcement No. 47 of 2020. The details are as follows:

Name of the product under investigation: n-propanol; aliases: 1-propanol, propanol.

English name: n-Propanol, n-Propylalcohol, 1-Propanol, 1-Propylalcohol, Propan-1-ol, Ethylcarbinol or 1-Hydroxypropane, referred to as NPA

Molecular formula: C3H8O

Physical and chemical properties: colorless liquid with alcohol odor; molecular weight 60.10, melting point -127°C, boiling point 96.5-98°C, relative density: 0.803-0.805 (20°C), flash point 23°C. Soluble in water and common organic solvents such as alcohols, ketones, aldehydes, ethers, glycols and aromatic and aliphatic hydrocarbons.

Main uses: n-propyl alcohol is used directly or esterified to n-propyl acetate, which is widely used in food packaging production and as a printing ink solvent for food packaging. n-propyl acetate is also an important component of the lithium battery electrolyte for new energy vehicles. As a prodrug, n-propanol is widely used in the production of erythromycin. It is an indispensable raw material for macrolide antibiotics and is also the starting raw material for prothiodine, probenecid and other drugs. As a chemical intermediate, n-propanol is used to synthesize glycol ether, n-propylamine, n-propyl ester and propyl bromide, etc. As an excellent solvent, n-propanol is also widely used in products such as coatings, paints, adhesives, cosmetics, plastics, and fungicides. n-Propanol is also an important raw material in many fields such as food additives, feed additives, synthetic flavors, detergents, plasticizers, lubricants, degreasing fluids, adhesives, preservatives and brake oil.

This product falls under the "Import and Export Tariffs of the People's Republic of China": 29051210.

The tax rate for levying countervailing duties is consistent with the provisions of the Ministry of Commerce Announcement No. 47 of 2020. The countervailing duty rates levied on U.S. companies are as follows:

1. Dow Chemical Company 37.7% (The Dow Chemical Company)

2.OQ Chemical Company 34.2% (OQ Chemicals Corporation)

3. Other U.S. companies 37.7%

3. Methods of levying countervailing duties

Starting from November 6, 2026, import operators shall pay corresponding countervailing duties to the Customs of the People's Republic of China when importing n-propanol originating in the United States. Countervailing duties are levied ad valorem on the taxable price of imported goods determined by the customs. The calculation formula is: Countervailing duty amount = taxable price of imported goods determined by customs × countervailing duty rate. The value-added tax at the import stage is levied ad valorem based on the taxable price of imported goods determined by the customs plus customs duties and countervailing duties.

4. Administrative reconsideration and administrative litigation

According to the provisions of Article 52 of the "Countervailing Regulations", those who are dissatisfied with this review decision may apply for administrative review in accordance with the law, or may file a lawsuit in the People's Court in accordance with the law.

5. This announcement will be effective from November 6, 2026