Initiation of Sunset Review: Anti-dumping duties on pencils from China

On January 20^th, 2026, the publication of SECEX Circular No. 4/2026 initiated the sunset review of the anti-dumping duties on Brazilian imports of pencils originating from the People’s Republic of China. The product under investigation is usually classified under subheading 9609.10.00 of the Mercosur Common Nomenclature (NCM).

The antidumping duties were originally applied by Interministerial Ordinance MICT/MF No. 2. The measure was extended by CAMEX Resolution No. 6/2003 and subsequently by CAMEX Resolution No. 2/2009. The following review was concluded without an extension of the measure via SECEX Circular No. 1/2015. A new investigation was initiated in 2019, and the antidumping duty was applied for a term of up to 5 years by GECEX Resolution No. 141/2021.

The current review was motivated by a petition filed by A.W. FABER-CASTELL S.A. After a preliminary analysis, the Foreign Trade Secretariat (SECEX), through the Department of Trade Remedies (DECOM), recommended the initiation of the sunset review to verify the need for the extension of the antidumping duties applied to pencils, in light of evidence suggesting that the termination of the measure would most likely lead to the continuation of dumping in exports originating from China and the recurrence of injury.

The main information of the process is summarized below:

• Petitioner: A.W. FABER-CASTELL S.A.
• Origins: China.

• Period of Investigation:

Resumption of dumping: April 2024 to March 2025.

Resumption of injury to domestic industry: April 2020 to March 2025.

• Product under investigation:

Classification: Usually classified in subheading 10.00 of the NCM.

Description: Writing, drawing, and/or coloring pencils made of wood, thermoplastic resins (plastic resins), or other materials, containing graphite or colored lead based on carbonates tinted by pigments or dyes.

• Difference between the Chinese constructed normal value and the export price for initiation purposes:

Absolute difference: 11.63 US$/kg

Relative difference: 371.79%

The participation of interested parties — including domestic producers, importers, exporters and governments of the countries under investigation — must necessarily be carried out through petitions in the Electronic Information System (SEI) of the Ministry of Development, Industry, Trade and Services (MDIC).

Questionnaires will be sent to the identified interested parties, who will have 30 days from the date of the notification to send their responses. Parties not initially identified at the beginning of the proceeding, but who consider themselves interested may request to be admitted to the case by February 9^th, 2026.

The sunset review must be completed within 10 months, extendable for up to 2 additional months. The anti-dumping duties remain in force until the conclusion of the review and, if the initial claims are confirmed, may be renewed for another 5 years.