Today, U.S. Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) investigations to determine whether imports of sodium gluconate, gluconic acid and derivative products from China and France are being dumped in the United States, and a countervailing duty (CVD) investigation to determine whether producers of sodium gluconate, gluconic acid and derivative products in China are receiving unfair subsidies.

“The Department will act swiftly, while assuring a full and fair assessment of the facts, to ensure that everyone trades on a level playing field,” said Secretary Ross. “The Trump administration will defend American workers and businesses with every tool at our disposal.”

These AD and CVD investigations were initiated based on petitions filed by PMP Fermentation Products, Inc. (Peoria, IL) on November 30. The estimated dumping margins alleged by the petitioner are 213.15 percent for China and 76.95 percent for France. The subsidy programs alleged by the petitioner include preferential loans and interest rates; preferential tax programs; the provision of inputs, services, and land for less than adequate remuneration; and grant programs.

In the AD investigations, the Commerce Department will determine whether imports of sodium gluconate, gluconic acid, and derivative products from China and France are being dumped in the U.S. market at less than fair value.

In the CVD investigation, the Commerce Department will determine whether Chinese producers of sodium gluconate, gluconic acid, and derivative products are receiving government subsidies.

If the Commerce Department determines that sodium gluconate, gluconic acid, and derivative products from China and France are being dumped into the U.S. market or that China is providing government subsidies, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of sodium gluconate, gluconic acid, and derivative products from China and France are causing injury to the U.S. industry, the Commerce Department will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.

In 2016, imports of sodium gluconate, gluconic acid, and derivative products from China and France were valued at an estimated $4.4 million and $6.1 million, respectively.

Click HERE for a fact sheet on these initiations.

Next Steps:

During the Commerce Department’s investigations into whether sodium gluconate, gluconic acid, and derivative products are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before January 16, 2018. If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with a preliminary CVD determination scheduled for February 23, 2018, and preliminary AD determinations scheduled for May 9, 2018, unless these deadlines are extended.

If the Commerce Department preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing the subject sodium gluconate, gluconic acid, and derivative products from China and France.

Final determinations by the Commerce Department in these cases are scheduled for May 9, 2018, for the CVD investigation, and July 23, 2018, for the AD investigations, but those dates may be extended. If the Commerce Department finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.

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From January 20 through December 20, 2017, Commerce has initiated 82 AD and CVD investigations – a 46 percent increase over the previous year. Commerce currently maintains 411 AD and CVD duty orders which provide relief to American companies and industries impacted by unfair trade.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to “antidumping” duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks and production inputs, are subject to “countervailing duties” aimed at directly countering those subsidies.