March 18, 2014 

Director Wendy Cleland-Hamnett

U.S. Environmental Protection Agency

Director—Office of Pollution Prevention and Toxics

1200 Pennsylvania Avenue, N.W.

Washington, DC 20460

Dear Director Cleland-Hamnett:

I had the privilege of discussing with Mr. Hiroshi Dodohara the potential opportunity for Nation 

Ford Chemical (NFC) to import Chloranil (CAS # 118-76-2) and extremely appreciate his 

help. Currently, under the Dioxin/Furan Test Rule (D/F Test Rule) which is codified in Title 

40 CFR 766, it requires extensive, pre-approved testing before Chloranil can be imported. 

The intent of this test rule was for the EPA to gain enough technical knowledge to be able to 

produce a Significant New Use Rule (SNUR) for Chloranil. Based on the information supplied 

by the current importers as well as discussions with various end-users of Chloranil in the 

early 1990s, the EPA determined that one manufacturing process produced dioxins at 

extremely low levels. At that time, the EPA deemed that Chloranil produced in this manner 

would be called “Low Dioxin Chloranil (LDC)” and that the maximum concentration of dioxins

would be 20 ppb TCDD TEQ. Each existing US Chloranil consumer at that time signed a

Memorandum of Understanding (MOU) that he would consume only LDC. NFC, under its 

previous name RM Industries, signed this MOU. 

In the case of NFC’s consumption of Chloranil, our company historically has converted this 

raw material into crude Pigment Violet 23 (PV 23). However, in 2006 NFC stopped using 

Chloranil as the primary manufacturing route to make PV23 and, in 2007, started converting a 

downstream intermediate, Dianil (CAS # 80546-37-9), into PV 23. This is the primary way 

that we synthesize the crude pigment today. However, due to the ever increasing cost 

pressure arising from the Far East, NFC is in serious jeopardy of losing the PV 23 business 

which is a very significant part of our operations. From this pressure, NFC is reviewing all 

options to help us remain competitive and in business. One such option is for NFC to import 

Chloranil to be used to manufacture PV 23 as our primary synthesis route. Changing market 

conditions now make it possible for NFC to convert the Chloranil to PV 23 in a more efficient 

manner than starting with Dianil. This action will move jobs from China back to the US. It 

will create 5 jobs in our local economy and will save an additional 6 positions! Moreover, the 

return to using Chloranil will help NFC continue to operate as a going concern just as it has 

done so for over 35 years. If our company were to cease to exist, not only would our 

approximately 90 employees become unemployed, but also several contractors and local 

support companies could fail as a direct result. In addition, NFC is a very strategic partner to 

the US Military in the area of smoke dyes for the M18 grenades. In fact, NFC is the only 

company able to supply this very important material to our military. For these reasons, NFC’s
Chloranil 

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being able to import Chloranil is very important to our local economy as well as to our national 

defense.

NFC identified two manufactures of LDC Chloranil in China several years ago. These 

manufactures are Jiangyin Yuhua Chemical Co., Ltd. and Xiangshuixian Yuanda Chemical

Co., Ltd. Jay Dickson, NFC’s President, has recently visited each manufacturing site while 

he was in China in September 2013. Both of these manufacturers currently supply Chloranil 

to the Chinese manufacturer of Dianil which NFC uses to make PV23. Both suppliers 

routinely test for dioxins using SGL in Germany, and all of the tested lots are always at least 

one order of magnitude below the required maximum of 20 ppb TCDD TEQ. 

In the Test Rule regulations, specifically in 40 CFR 766.32 (a) (2) (ii), the regulations allow for 

a waiver from testing if “in the judgment of EPA, the cost of testing would drive the chemical 

substance off the market, or prevent resumption of manufacture or import of the chemical 

substance, if it is not currently manufactured, and the chemical substance will be produced so 

that no unreasonable risk will occur due to its manufacture, import, processing, distribution, 

use, or disposal. (In this case, the manufacturer must submit to EPA all data supporting the 

determination.)”.

The scenario proposed in the above regulation could not be more applicable to the Chloranil 

situation at NFC. To conduct the required testing under the strict requirements of the Good 

Laboratory Practices (GLP), the cost is estimated at well over $200,000. However, failing to 

receive approval to import Chloranil will prevent the manufacture or import of this chemical 

substance unequivocally. Moreover, since the two Chloranil manufacturers that NFC would 

like to use are already supplying their product to the Dianil producer in China, there is no 

unreasonable risk due to its use. Additionally, NFC already uses Chloranil from Clariant 

when we start from this route which means that NFC knows how to properly handle Chloranil; 

all of these Chloranil sources (Clariant, Yuhua and Yuanda) are LDC forms of Chloranil.

Last, the only major use of Chloranil in the US is the manufacture of PV 23 at our site, so the 

exposure to the environment is mostly limited to our Fort Mill, SC facility. This situation also 

illustrates another important fact. Currently, the Clariant supplied material, which is 

synthesized in India, is the only approved source of Chloranil for the US market. If this 

source were to become unavailable, the supply of PV 23 could be affected. If this shortage 

were to occur, extreme disruptions would be created in the ink, paint and plastic supply 

chains.

NFC does believe that testing is important, and NFC conducted rigorous testing of 3 random 

lots (computer generated picks) of Chloranil produced by Jiangyin Yuhua in 2005 using a 

sophisticated, well trained US lab—Analytical Perspectives—in Wilmington, NC (now part of 

SGL). This lab has extensive experience in Dioxin testing. After completion of the testing, a 

400+ page report was prepared by Analytical Perspectives. This report listed the test results 

for all 3 lots to be well below the maximum limit. The actual results of the three lots were 

0.137, 0.122, and 0.132 ppb TCDD TEQ; the testing summary is attached.

If we cannot receive a waiver from the D/F Test Rule, then we request that the proposed 

SNUR be finalized. Originally, this SNUR was proposed in 1993 and now, 20 years later, the 

final rule has not been promulgated into law even though the EPA in 2001 accepted the final 

test rule data. The most recent update in 2011 in the Federal Register states that the EPA is 

working on formulating the final rule. The Color Pigments Manufacturers Association, Inc. 

(CPMA) has made this same request based on the fact that PV 23 could be imported into the 

US made from high dioxin Chloranil (HDC). Currently, there is no law that prevents a non-
Chloranil 

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signatory of the MOU to manufacture PV 23 using HDC and then import the PV 23 into the 

US. Passing the proposed SNUR would prevent this from happening as well as help NFC to 

continue to manufacture PV 23 in an environmentally responsible fashion at a competitive 

cost. 

We appreciate your consideration of this request and understand that all levels of government 

are being forced to do more with less money, resources, time and people. This fact is true for 

small businesses all around the country as well. In fact, this reality is the reason for this 

request. NFC is constantly trying to find more efficient ways to synthesize materials. Not 

only does this efficiency help us financially, but it assists us to be better stewards of the 

environment. In particular, we have discovered that we can increase the yields dramatically if 

we start with Chloranil in lieu of starting with Dianil. This means that less natural gas will be 

burned, less waste will be generated, and fewer emissions will be released per lb of PV 23 

produced—all factors that positively affect both economics and the environment. 

If you have any questions or concerns regarding this request, please contact me at your 

earliest convenience.

Sincerely, 

Phillip McCarter

 Vice President

encl: chloranil sampling results

cc: Jay Dickson, Nation Ford Chemical

 John Dickson, Nation Ford Chemical

 Steve Schmidt, Sun Chemical

 Hiroshi Dodohara, US EPA