US finds dumping and subsidization of products from China - Global Trade Magazine
  October 4th, 2018 | Written by

US finds dumping and subsidization of products from China

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  • Commerce determined that exporters from China sold products in the US at less than fair value.
  • Commerce determined China is providing subsidies to producers of sodium gluconate and gluconic acid.
  • Foreign companies that price products in the US below the cost of production are subject to antidumping duties.

The US Department of Commerce has announced the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of sodium gluconate, gluconic acid, and derivative products from China.

Commerce determined that exporters from China have sold sodium gluconate, gluconic acid, and derivative products in the United States at 213.15 percent less than fair value.  Commerce also determined that China is providing countervailable subsidies to its producers of sodium gluconate, gluconic acid, and derivative products at a final rate of 194.67 percent.

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

In 2017, imports of sodium gluconate, gluconic acid, and derivative products from China were valued at an estimated $6.2 million. The petitioner in the case was PMP Fermentation Products, Inc. (of Peoria, Illinois.

Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Since the beginning of the current administration, Commerce has initiated 122 new antidumping and countervailing duty investigations. Commerce currently maintains 456 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

The US International Trade Commission (ITC) is currently scheduled to make its final injury determinations on November 1, 2018.  If the ITC makes affirmative final injury determinations, Commerce will issue AD and CVD orders.  If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.


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