For Immediate Release:September 17, 2008
Contact: Brittany Eck (202) 482-3809
COMMERCE PRELIMINARILY FINDS UNFAIR SUBSIDIZATION OF CITRIC ACID AND CITRATE SALTS FROM CHINA
WASHINGTON –The U.S. Department of Commerce today announced its affirmative preliminary determination in the anti-subsidy investigation of citric acid and certain citrate salts from China. Commerce preliminarily determined that the two participating mandatory respondents received net countervailable subsidies, and thus a countervailing duty (CVD) rate of 1.41 and 2.92 percent, respectively. The other mandatory respondent failed to participate in the investigation and received a CVD rate of 97.72 percent based on adverse facts available. All other Chinese exporters of citric acid and citrate salts received a CVD rate of 2.67 percent.
“The United States is committed to enforcing U.S. trade laws to ensure that American businesses are treated fairly in the international marketplace,” said Assistant Secretary for Import Administration David Spooner. “The Administration will continue to vigorously enforce our anti-subsidy laws and take appropriate remedies based on the facts presented in each case.”
Citric acid and citrate salts are used in various food and beverage products including carbonated and non-carbonated drinks, frozen foods, as well as household cleaning products such as laundry detergents.
As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to suspend liquidation of entries of subject merchandise and to collect a cash deposit or bond based on these preliminary CVD rates. Commerce is currently scheduled to issue its final determination in January 2009.
The petitioners for this investigation are Archer Daniels Midland Company (Decatur, Ill.); Cargill, Incorporated (Minneapolis, Minn.); and Tate & Lyle Americas, Inc. (Decatur, Ill.).
Subsidies are financial assistance from foreign governments that benefit the production, manufacture or exportation of goods. For more information about Import Administration, or for the fact sheet on today’s decisions, please visit www.trade.gov/ia.