CAMMR Issue 201506:Chinese agrochemicle company won the first U.S. Section 337 Investigation case in agrochemical industry
Jul. 16, 2015
According to the information from Chinese National Bureau of Statistics, the profitability of China’s pesticide industry had increased from January to April, while the growth rates of biochemical pesticide and microbial pesticide are much higher than that of chemical pesticide. In the meantime, the number of unprofitable enterprises in pesticide industry and their amount of losses incurred both had significantly increased from January to April. As regards to the production volume, the total chemical pesticide volume since April and May has declined. Also according to the data of Chinese General Administration of Customs, China’s pesticide export volume increased somewhat in the 1st quarter but the export amount decreased by 6.4% year on year. Furthermore, except for the raised price of carbendazim and the stable price of mancozeb, the prices of the 8 major pesticide varieties we are monitoring have declined. In general, China’s pesticide industry in the 1st half year suffered a depression.
On March 5, 2014, FMC Corporation filed a complaint requesting that the International Trade Commission (ITC) commence an investigation pursuant to Section 337 regarding “sulfentrazone, sulfentrazone compositions, and processes for producing sulfentrazone”, which alleged that the sulfentrazone made and sold by Beijing Nutrichem Science and Technology Stock Co., Ltd., Jiangxi Heyi Chemicals Co. Ltd., and two American importers infringed a patent of FMC. The Judge issued an initial determination on April 10, 2015, which rejected FMC’s request for issuance of a permanent relief order. On June 8, 2015, the U.S. ITC issued the final determination affirming the original judgment. The case is the first U.S. Section 337 investigation case against Chinese agrochemical companies.
China pesticide two-dimension code rule was published recently. While the Ministry of Agriculture is promoting designated dealership and real-name registered purchase of high-toxic pesticide, while the Ministry of Environmental Protection is promoting the pesticide package waste recovery, and while the Ministry of Information Technology is promoting the code assignment system, the popularization and application of the two-dimension code has become imperative. Two-dimension code helps users to identify true or false pesticide thus to effectively crack down fakes or inferior product. The coded message of two-dimension code contains the indication of level of toxicity, which can be used as the basis for designated dealership, real-name registered purchase and compulsory package waste recovery of high-toxic pesticide.
The influence and penetration of internet into pesticide industry is continuing to be enhanced. Last month, 4 pesticide manufacturers took a move toward internet-based service. Wynca announced establishment of an online-shop using internet for product promotion and sales; Zhengbang Group invested in establishment of an internet network company; Hebang and Biok set foot in the internet financing. Internet has become a medium and means for Chinese pesticide manufacturers to transform into being comprehensive modern agricultural service providers.
*Note: 337 Investigation refers to that, based on the Tariff Act of 1930 Section 337 and its relative amendment, the USITC（United States International Trade Commission）conducts investigations to prohibit all unfair competitions or any unfair trade practice in exportations to USA.
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