Australia Initiates Anti-Circumvention Investigation on Anti-Dumping Measures Against Chinese 2,4-D

Accusations Focus on Potential Transshipment Through Malaysia to Evade Duties

On January 7, 2026, the Australian Anti-Dumping Commission (ADC) announced the initiation of an anti-circumvention investigation concerning imports of 2,4-Dichlorophenoxyacetic acid (2,4-D) from China. The probe, launched in response to an application lodged by the domestic producer Nufarm Limited, will examine whether Chinese subject goods are being exported to Australia via Malaysia to circumvent the existing anti-dumping measures.

Core Investigation Details

• Products Under Scrutiny: The investigation covers 2,4-D and its sodium salt, all intermediate products (such as isobutyl ester, ethyl ester, 2-ethylhexyl ester, dimethylamine salt, isopropylamine salt, etc.), fully formulated products, and all other forms. It specifically focuses on formulated 2,4-D 2-ethylhexyl ester exported to Australia from Malaysia.

• Tariff Codes: Australian Harmonized System (AHS) codes 2918.99.00 (statistical codes 43, 44, 48) and 3808.93.00 (statistical codes 61, 71, 79).

• Alleged Circumvention Practices:

  • Assembly in a Third Country: It is alleged that the Malaysian company Kenso Corporation imports Chinese-origin 2,4-D acid (subject to the anti-dumping measures) from a related party. The acid is then reportedly esterified and formulated into finished herbicide products at Kenso’s plant in Malaysia before being exported to Australia.

  • Export Through a Third Country: It is alleged that Chinese-made 2,4-D products are first exported to Malaysia and then transshipped to Australia, thereby changing the declared country of origin to avoid anti-dumping duties.

• Key Involved Parties:

  • Applicant: Nufarm Limited (Australian domestic producer).

  • Alleged Circumventing Parties: Malaysian producer Kenso Corporation (M) Sdn Bhd and its related Australian importer, Kenso AgCare Pty Ltd.

• Investigation Period and Timeline: The period under investigation spans from January 1, 2019, to December 31, 2025. The ADC is expected to issue a Statement of Essential Facts no later than April 27, 2026, and submit its final report to the Minister for Industry and Science by June 11, 2026.

Key Bases for the Applicant’s Allegations

According to Nufarm’s application and the ADC’s Considerations Report, the allegations are primarily based on:

1. Source of Raw Material: Citing a 2020 US Customs and Border Protection (CBP) country of origin ruling, where Kenso Corporation reportedly acknowledged that its Malaysian plant uses Chinese-origin 2,4-D acid for production.

2. Commercial Motivation: Kenso’s esterification plant in Malaysia commenced operations in 2019, while local Malaysian demand for this specific ester formulation is claimed to be minimal. Its production is allegedly geared mainly for export, particularly to the Australian market.

3. Price Impact: Nufarm provided data indicating that the import price of 2,4-D ester formulations from Malaysia, even after adding the payable anti-dumping duty for Chinese products, remains lower than the duty-paid price of directly shipped Chinese products. This is claimed to have caused loss of market share and profit for Nufarm in Australia.

4. Shift in Trade Pattern: Data from the Australian Bureau of Statistics reportedly shows a significant increase in imports of formulated 2,4-D products from Malaysia since 2019, which now compete with products from China.

Case History

The Australian anti-dumping measures on Chinese 2,4-D represent a trade remedy case spanning over two decades:

• 2002: The initial anti-dumping investigation was initiated on April 2, 2002.

• 2003: A positive final determination was made on March 24, 2003, imposing anti-dumping duties of 5%-10%.

• Sunset Reviews: Three subsequent sunset review investigations were initiated on July 9, 2007, August 10, 2012, and July 20, 2017. Affirmative determinations followed on January 17, 2008, January 31, 2013, and March 5, 2018.

• Latest Sunset Review (Fourth): Initiated on April 13, 2022, upon application by Nufarm. On December 21, 2022, the ADC decided to continue the anti-dumping duties. The current rates are 22.3% for Shandong rainbow Chemical Co., Ltd., and 35.3% for all other Chinese exporters. These measures took effect on March 25, 2023.