April 8 - On April 7, the Department of Commerce (Commerce) announced its affirmative final determinations in the antidumping and countervailing duty investigations on imports of citric acid and certain citrate salts from the People's Republic of China (China) and Canada.
Citric acid and citrate salts are used in various food and beverage products including carbonated and noncarbonated drinks, and frozen foods, as well as laundry detergents and household cleaning products.
Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.
Commerce determined that Chinese and Canadian producers/exporters have sold citric acid and citrate salts in the United States at 94.61 to 156.87 percent, and 23.21percent below normal value, respectively.
In the China investigation, mandatory respondents TTCA Co., Ltd. (a.k.a. Shandong TTCA Biochemistry Co., Ltd.) and Yixing Union Biochemical Co., Ltd., received final dumping rates of 129.08 and 94.61 percent, respectively. Eleven Chinese exporters qualified for a separate rate of 111.85 percent. All other exporters will receive the China-wide rate of 156.87 percent.
In the Canada investigation, mandatory respondent, Jungbunzlauer Canada, Inc., received a final dumping rate of 23.21 percent. All other Canadian exporters will receive a rate of 23.21 percent.
In addition, Commerce also determined that Chinese producers/exporters have received net countervailable subsidies ranging from 3.60 to 118.95 percent. As a result of these final determinations, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these final rates.
The petitioners for these investigations are Archer Daniels Midland Company (IL); Cargill, Incorporated (MN); and Tate & Lyle Americas, Inc. (IL).
The scope of these investigations includes all grades and granulation sizes of citric acid, sodium citrate, and potassium citrate in their unblended forms, whether dry or in solution, and regardless of packaging type. The scope also includes blends of citric acid, sodium citrate, and potassium citrate; as well as blends with other ingredients, such as sugar, where the unblended form(s) of citric acid, sodium citrate, and potassium citrate constitute 40 percent or more, by weight, of the bend.
Also included are all forms of crude calcium citrate, including dicalcium citrate onohydrate, and tricalcium citrate tetrahydrate, which are intermediate products in the production .S. Department of Commerce | International Trade Administration of citric acid, sodium citrate, and potassium citrate.
The scope does not include calcium citrate that satisfies the standards set forth in the United States Pharmacopeia and has been mixed with a functional excipient, such as dextrose or starch, where the excipient constitutes at least 2 percent, by weight, of the product. The scope includes the hydrous and anhydrous forms of citric acid, the dihydrate and anhydrous forms of sodium citrate, otherwise known as citric acid sodium salt, and the monohydrate and monopotassium forms of potassium citrate. Sodium citrate also includes both trisodium citrate and monosodium citrate, which are also known as citric acid trisodium salt and citric acid monosodium salt, respectively.
Citric acid and sodium citrate are classifiable under 2918.14.0000 and 2918.15.1000 of the Harmonized Tariff Schedule of the United States (HTSUS), respectively. Potassium citrate and crude calcium citrate are classifiable under HTSUS 2918.15.5000 and 3824.90.9290, respectively. Blends that include citric acid, sodium citrate, and potassium citrate are classifiable under HTSUS 3824.90.9290. While the HTSUS subheadings are provided for convenience and customs purposes, Commerce’s written description governs the scope of these investigations.
In 2008, imports of citric acid and citrate salts from Canada were valued at an estimated $66.3 million. Imports from China were valued at an estimated $99.5 million.
Next Steps
The U.S. International Trade Commission (ITC) is scheduled to issue its final injury determination on or about May 18. If the ITC makes affirmative final injury determinations that imports of citric acid and citrate salts from Canada and China materially injure, or threaten material injury to, the domestic industry, Commerce will issue antidumping and countervailing duty orders.