MINISTRY OF COMMERCE ANNOUNCEMENT NO.57 ON PRELIMINARY ARBITRATION ON EPICHLOROHYDRIN

Ministry of Commerce

Ministry of Commerce Announcement No.57 on Preliminary Arbitration on Epichlorohydrin

[2005] No.57

In accordance with Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce released announcement on Dec 28,
2004, deciding to carry out anti-dumping investigation on Epichlorohydrin originating from Russia, the Republic of Korea, Japan and
United States.

Ministry of Commerce carried out investigation on dumping and dumping profit margin as well as injury and injury extent, according
to the results of which as well as tem No. 24 of the Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce
release preliminary attribution (please refer appendix). Relevant matters are now announced as follows:

Preliminary Attribution:

In accordance with investigation results, Ministry of Commerce confirms the dumping of Epichlorohydrin originating from Russia, the
Republic of Korea, Japan and United States, and injuries of mainland Epichlorohydrin industry as well as the causality between dumping
and real injuries.

Deposit:

In accordance with tem No. 28 and 29 of the Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce decides
to carry out anti-dumping measures in means of deposit. As from Sep 21, importers need to provide relevant deposits to Customs of
the People’s Republic of China for the importing of Epichlorohydrin originating from Russia, the Republic of Korea, Japan and United
States. The tariff codes of the investigated commodities are: 29103000.

Deposit rates of different Companies:

Russian Companies

1.

The Joint Stock Company Kaustik 23.0%

2.

Limited Liability Company “Usoliekhimprom” 8.6%

3.

All Others 71.5%

Companies of the Republic of Korea

1.

HAN WHA CHEMICAL CORPORATION 4.5%

2.

Samsung Fine Chemicals Co., LTD 4.3%

3.

All Others 71.5%

Japanese Companies

1.

Kashima Chemical Co., Ltd. 7.8%

2.

All Others 71.5%

3.

DAISO CO., LTD. 0%

American Companies

1.

The Dow Chemical Company 4.3%

2.

All Others 71.5%

All interested parties may submit comments in written form as well as relevant evidences to Ministry of Commerce in 20 days for consideration
as from release of this announcement.

Appendix:

Ministry of Commerce Preliminary Attribution on Epichlorohydrin originating from Russia, the Republic of Korea, Japan and United States

Ministry of Commerce

Sep 21, 2005