Today, the U.S. Department of Commerce announced an affirmative final determination in the antidumping duty (AD) investigation, and a negative final determination in the countervailing duty (CVD) investigation of imports of glycine from Thailand. Commerce found that exporters from Thailand have sold glycine at less than fair value in the United States at rates from 201.59 to 227.27 percent, and determined that exporters from Thailand received de minimis countervailable subsidies.
On April 24, 2019, Commerce took the extraordinary step of postponing the final determinations in these investigations beyond the statutory deadline to investigate an alleged transshipment scheme of Chinese-origin glycine through Thailand, in order to avoid duties of glycine from China.
Based on our extended investigations, Commerce found that Newtrend Food Ingredient (Thailand) Co., Ltd withheld critical information with respect to its reported costs of production for glycine, such that its reported cost data could not be relied upon for AD margin calculation purposes in the final determination. As a result, Commerce applied to Newtrend a final dumping margin based on the adverse facts available, equal to 227.27 percent. This finding does not apply to the CVD investigation, as Commerce’s methodology to calculate subsidy rates does not involve the cost of production.
In 2018, imports of glycine from Thailand were valued at an estimated $8.7 million.
The petitioners are GEO Specialty Chemicals, Inc. (Lafayette, IN) and Chattem Chemicals, Inc. (Chattanooga, TN).
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade law and does so through an impartial, transparent process that abides by international law and is based on factual evidence provided on the record.
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, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.
The U.S. International Trade Commission (ITC) is currently scheduled to make its final injury determination in the AD investigation on or about September 12, 2019. If the ITC makes an affirmative final injury determination, Commerce will issue an AD order. If the ITC makes a negative final determination of injury, the AD investigation will be terminated and no order will be issued. Because Commerce has made a negative final determination in the CVD investigation, the CVD proceeding is terminated, and the ITC will not be making a final injury determination in that investigation.
Click HERE for a fact sheet on today’s decisions.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 179 new antidumping and countervailing duty investigations – this is a 231 percent increase from the comparable period in the previous administration.
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. Commerce currently maintains 492 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.