MINISTRY OF COMMERCE ANNOUNCEMENT NO.123, 2005 ON FINAL ARBITRATION ON DIMETHYL CYCLOSILOXANE

Ministry of Commerce

Ministry of Commerce Announcement No.123, 2005 on Final Arbitration on Dimethyl Cyclosiloxane

[2005] No.123

On July 16, 2004, in accordance with Anti-dumping Regulations of People’ Republic of China, Ministry of Commerce issued an announcement
to start anti-dumping investigation on imported Dimethyl Cyclosiloxane originating from Japan, U.S., U.K, and Germany (hereinafter
referred to as “investigated product”).

Ministry of Commerce issued the preliminary determination on September 29, 2005, confirming that dumping of the investigated product
had taken place and it had caused material injury to China’ domestic industries, and there was a causal relationship between the
dumping and the injury.

As the final arbitration, Ministry of Commerce decided to impose anti-dumping duties on the investigated product. Customs Tariffs
Committee of the State Council will levy anti-dumping duties on the investigated product as of January 16, 2006.

The investigated product is listed under No. 29310000 and 38249090 in the Import and Export Tariffs of the People’ Republic of China.

The anti-dumping duty rates levied on the related companies are listed as follows:

Companies of Japan:

1.

GE Toshiba Silicones Co., Ltd: 14%

2.

All Others: 22%

Companies of the U.S,:

1.

Dow Corning Corporation: 13%

2.

All Others: 22%

Companies of the U. K.:

1.

Dow Corning Limited: 13%

2.

All Others: 22%

Companies of Germany:

1.

Wacker-Chemie GmbH:22%

2.

All Others: 22%

Importers shall, while importing Dimethyl Cyclosiloxane originating from Japan, U.S., U.K. and Germany as of January 16, 2006, pay
relevant anti-dumping duties to General Administration of Customs of PRC. Anti-dumping Duty= Customs Tax Payment Price * Anti-dumping
Duty Rate.

The levy of anti-dumping duties on imported Dimethyl Cyclosiloxane originating from Japan, U.S., U.K. and Germany will last 5 years
as from January 16, 2006.

The relevant interested parties could apply, in written forms, to the Ministry of Commerce for an interim review during the levy of
anti-dumping duties in accordance with Article 49 of Anti-dumping Regulations of People’ Republic of China.

The relevant interested parties, disagreed with the final arbitration or the levy of the anti-dumping duties, could apply for an administrative
reconsideration or lawsuit in accordance with Article 53 of Anti-dumping Regulations of People’ Republic of China.

Appendix: Ministry of Commerce Final Arbitration on Anti-dumping Investigation on Imported Dimethyl Cyclosiloxane Originating from
Japan, U.S., U.K. and Germany(omitted)

Ministry of Commerce of PRC

January 16, 2006