On the first working day after the National Day holiday, the United States implemented a matter directly related to the chemical and rubber industry chains in terms of trade relief: On October 6, U.S. Eastern Time, the U.S. Department of Commerce issued an announcement that N-cyclohexylbenzothiazole-2-sulfinamide originating in China would be banned (CBS for short in English, commonly known in the industry as Rubber Promoter CBS and Promoter CZ) The countervailing investigation made a preliminary affirmative ruling, with the preliminary countervailing rate of 107.57%, and made a preliminary determination of "critical circumstances"-which means suspending clearing and cash deposit requirements can be retroactively applied to uncleared goods that entered the United States about 90 days before the announcement. According to the announcement, the measure is expected to take effect after publication in the Federal Register, that is, around October 8 Eastern Time.
1. What is CBS and why is it targeted?
The chemical name of CBS is N-cyclohexylbenzothiazole-2-sulfinamide, which is one of the commonly used delayed accelerators in the rubber vulcanization process: it determines the vulcanization efficiency and physical properties of the rubber, and is connected upstream to basic chemicals such as aniline and carbon disulfide, and is directly supplied downstream for the production of tires, hoses, tapes, rubber shoes, and cables. In other words, this is not an isolated chemical variety, but a key link in the entire rubber products supply chain. U.S. statistics show that the amount of CBS imported by the United States from China in 2025 will be approximately US$12.23 million; China is the main producer and exporter of CBS in the world, and the U.S. market has long relied on China's supplies.
The product scope needs to be reminded separately: the corresponding tax numbers listed in the announcement are mainly 2934.20.8000, 3812.10.1000, and 3812.10.5000. However, the United States made it clear that the written product description shall govern whether the product belongs to the case. The measured value or sample concentration of CBS is usually between 94% and 99%. The forms include powder, oily powder and granules. CBS of other colors or forms are also within the range.
2. How did 107.57% come about and when did it take effect
The calculation logic of countervailing duties is: the United States determines that the product involved has received deductible subsidies in the production or export process, and calculates the subsidy amount accordingly. The current 107.57% of the case are preliminary rulings, which does not mean that the investigation is over. There are still several steps to the complete process: the final ruling of the Ministry of Commerce (which has been aligned with the final anti-dumping ruling) and the final ruling of the U.S. International Trade Commission (USITC) on industrial injury, before a formal double counter-tax order will be formed. In fact, USITC already determined in June this year that the anti-dumping and countervailing investigations against China CBS contained reasonable signs of substantial damage to U.S. domestic industries. This is the prerequisite for the Department of Commerce to continue to advance the investigation.
So what we really need to focus on now is not this one number, but a combination of four numbers: the final countervailing tax rate, the preliminary and final anti-dumping tax rates, the combined comprehensive tax burden of the two, and the official effective date and retroactive date of the measure. Starting date. Changes in numbers at any link will directly change whether American customers can accept new landing costs.
3. What is really troublesome is the traceability of key situations
What requires the most attention of export enterprises in this case is the identification of "critical circumstances". What it means is that the United States initially believes that there are special circumstances such as a surge in imports during the investigation period, so it can take retrospective measures on imported goods that have not yet been cleared within a certain period of time. According to the announcement, goods involved in the case that enter the United States on or after July 8, 2026, or are extracted from U.S. bonded warehouses for consumption and have not yet been cleared may be required to pay a countervailing duty of 107.57%; the Ministry of Commerce will instruct Customs to suspend customs clearance and require the payment of an equal deposit.
This rule breaks past experience-the new tax will only take effect in October, and early shipments will be avoided. When critical circumstances are identified, early delivery is not safe: the goods have arrived at the port and entered the U.S. warehouse, and as long as the liquidation has not been completed, the tax risk will not end. The first thing for enterprises that have just shipped the goods involved in the case in September and October is to ask the customs broker to check the clearing status and traceability window.
4. Transmission chain and three types of enterprises that require self-inspection
CBS is an intermediate product in the rubber industry chain. The sharp increase in U.S. import costs will be passed down the chain: chemical raw materials to rubber processing, then to rubber products such as tires, hoses, and tapes, and finally to the automobile and industrial products supply chain. According to this chain, there are three types of companies that directly need self-inspection: one is CBS production and export companies; the other is rubber products factories that use CBS as raw materials and use destination tax terms such as DAP and DDP to quote American customers. If no one agrees on who will bear the burden, the new taxes and fees will be recorded in their own accounts by default; thirdly, for equipment, additives and OEM companies supporting the above two types of enterprises, the customer cost structure has changed, and the order rhythm and bargaining conditions will change accordingly.
Contract terms are the first line of defense. For orders sold on CIF or FOB, the import fees and taxes shall in principle be borne by the buyer; for orders sold on DAP or DDP, the seller must pay close attention to who will bear the taxes and fees and how to adjust the price for policy changes. Enterprises that have signed the annual framework agreement should list the new trade relief tax as a price adjustment situation, and should not use a fixed price to carry a tax rate that changes at will.
5. Article 2 of the same week: The UK plans to impose an anti-dumping duty of up to 82.89% on aerial work platforms
The UK has taken simultaneous actions: On October 5, the British Trade Relief Agency (TRA) issued a basic factual statement on the anti-dumping investigation of arm-type and scissor-type aerial work platforms originating in China, proposing to impose an anti-dumping duty of up to 82.89%, and determined that China's import price is more than 25% lower than that of British industries. The public solicitation of opinions ends on October 20. Factories exporting aerial work equipment can use the October 20 diary as an opinion window; the UK and the United States are two independent procedures and do not replace each other.
6. Four actions for the factory
- First check whether the product falls within the scope:Compare the written description of the announcement item by item with the composition, concentration, form, and use, not just the tax number; if you are not sure about the scope of application, the conclusion will be binding on the customs.
- Check the accounts immediately if the goods have been shipped but not cleared:For goods involved in the case sent to the United States since September, customs brokers will check the clearing status, margin requirements and traceability window.
- Rewrite quote and contract terms:Trade remedy tax adjustment clauses are added to U.S. quotations. The annual contract states that policy changes exceed the agreed range can be negotiated for price adjustments. DDP and DAP orders separately confirm the tax payer.
- Customer communication should be proactive:It is much more decent to explain the traceability mechanism clearly than to wait until the customer is required to make the payment before explaining it; if there are categories not involved in the case, the customer will be given an alternative plan simultaneously.
7. Common questions
1. Our products are reported for a different tax number. Is it safe?
Not necessarily. The U.S. anti-dumping and countervailing orders restrict scope descriptions, and the tax numbers are only for ease of comparison. The correct way is to compare the scope text item by item with the product specifications, ingredient content, form and use; if you really have any doubts, go through the scope determination process and get a written conclusion, and don't comfort yourself by relying on the tax number.
2. The customer insists that we use DDP to quote, who will bear the additional taxes?
According to terminology, the import tax under DDP is originally borne by the seller. Either reserve a tariff scenario range in the quotation and state that the price can be adjusted for policy changes, or change the DAP to be cleared and paid by the buyer himself. The most taboo is not to write anything in the contract, explain it in legal terms after an accident, and pay the money out of your own account.
3. Can we still circumvent it through transit from a third country?
The risk is high. Recent law enforcement cases by U.S. Customs have shown that evading double counter-tax by changing the declared origin and understating the value of goods will be retroactively recognized by the customs trade remedy law enforcement agencies and superimposed with penalties. There is only one path to compliance: complete substantial processing in a third place, truly change the origin standards, and be supported by auditable production records.
