Washington, Sept. 8 (CNA) The U.S. Department of Commerce said Wednesday it had found in a preliminary determination that Taiwan's polyvinyl alcohol (PVA) firms violated anti-dumping rules.

The department issued a preliminary anti-dumping rate of 3.02 percent on Taiwan's PVA sales and instructed U.S. Customs and Border Protection to collect a cash deposit or bonds from Taiwan firms when they sell their products to the U.S.

After the preliminary determination, the department is continuing its investigation and is expected to reach a final decision on Jan, 20, 2011, the International Trade Commission under the department said.

The commission said that if it determines Taiwan PVA firms violated U.S. dumping rules, it will impose an anti-dumping duty on Taiwan's PVA products in March. The anti-dumping probe was initiated in 2004 after a petition was filed by Dallas, Texas-based Celanese Chemicals, accusing Taiwan's Chang Chun Petrochemical of dumping PVA products in the U.S.

The Department of Commerce's preliminary investigation found that Taiwan firms have been involved in unfair competition by selling PVA to the U.S. at a price lower than fair value. In this case, the price difference was 3.02 percent, the department said.

According to the preliminary decision, PVA sales to the U.S. by Chang Chun and all other Taiwan firms are subject to the 3.02 percent deposits.
PVA in fiber form is not included in the investigation, the department said.
Taiwan sold 12,000 metric tons of PVA worth US$22.13 million to the U.S. in 2007, and the sales amount rose to 15,000 metric tons worth US$36.32 million in 2008, according to the department.

In 2009, PVA sales from Taiwan to the U.S. totaled 8,000 metric tons worth US$18.24 million.

PVA, which is a dry, water-soluble synthetic polymer, is used in a wide range of applications, including textile and paper sizing and adhesive formulations.