Laws of the People's Republic of China

In accordance with Anti-dumping Regulations of the People's Republic of China, the Tariff Committee of the State Council decides to collect anti-dumping duties on imported epichlorohydrin (ECH) originating from Russia, the Republic of Korea, Japan and the United States as from June 28, 2006, and the duration of the collection shall be 5 years. The Ministry of Commerce specially released Announcement No.44, 2006 (see Appendix 1 for details) therefor. Related matters in implementation are announced as follows: 1. As from June 28, 2006, related departments shall impose anti-dumping duties and value-added tax in the linkage of import, besides import duties in line with current regulations, on imported ECH originating from Russia, the Republic of Korea, Japan and the United States in line with tax rates listed in Appendix 2 of this Announcement and the following computing formulas, different suppliers with different tax rates:

Anti-dumping duties = price after duties * anti-dumping rate

Value-added tax in the linkage of import = (price after duties + duties + anti-dumping duty) * rate of value-added tax in the linkage of import

See Appendix 1 for detailed description of goods on which anti-dumping duties shall be imposed. 2. Importers must provide certificate of origin to the Customs for import of ECH; in case the goods are from Russia, the Republic of Korea, Japan or the United States, commercial invoices from the original manufacturers shall be required as well. For those who cannot provide the certificate of origin and have failed to assure that the goods are from Russia, the Republic of Korea, Japan or the United States after investigation, the Customs shall collect the anti-dumping duties in accordance with the highest rate of anti-dumping rate listed in Appendix 2. In case the goods are from Russia, the Republic of Korea, Japan or the United States, but import operators cannot provide commercial invoices from the original manufacturers, the Customs shall collect the anti-dumping duties in accordance with the rate of anti-dumping rate applied to other companies of relevant countries listed in Appendix 2. 3. As to issues on the collection of anti-dumping duties on ECH originating from Russia, the Republic of Korea, Japan and the United States of processing trade bonded import, the Customs shall carry out the collection in accordance with Announcement No.9, 2001 of General Administration of Customs of the People's Republic of China and Decree No.11 of General Administration of Customs of the People's Republic of China. 4. If importers have imported ECH originating from Russia, the Republic of Korea, Japan and the United States and paid anti-dumping deposit after the implementation of provisional anti-dumping measures, the anti-dumping deposit shall be calculated in line with the scope of goods and anti-dumping rate specified in this Announcement. The anti-dumping deposit shall be transferred to be anti-dumping duties; the deposit of value-added tax in the linkage of import shall be transferred to be value-added tax in the linkage of import as well. Related enterprises may ask the Customs in the place of the collection for refund of excess within 6 months as from Jun 28, 2006. The insufficient section shall be exempted. 5. When encountering the same or similar goods on which the Customs cannot make sure whether to impose anti-dumping duties on or not in the process of collecting anti-dumping duties of the import ECH, please apply to the Ministry of Commerce for judgment. The Customs shall act in accordance with judgment thereof.

Specially announced hereby

Appendix: 1. Announcement No.44, 2006 of the Ministry of Commerce of the People's Republic of China (omitted) 2. Form of Anti-dumping Rate of Epichlorohydrin (ECH) General Administration of Customs June 27, 2006

Appendix 2

Form of Anti-dumping Rate of Epichlorohydrin (ECH)