For Immediate Release: April 8, 2008
Contact: Brittany Eck (202) 482-3809
COMMERCE FINDS SUBSIDIZATION OF SODIUM NITRITE FROM CHINA
WASHINGTON – The U.S. Department of Commerce today announced its affirmative preliminary determination in the countervailing duty (CVD) investigation on imports of sodium nitrite, a diesel fuel additive among other things, from the People’s Republic of China. Commerce preliminarily determined that Chinese exporters have received countervailable subsidies of 93.56 percent. Neither the two mandatory respondents, Shanxi Jiaocheng Hongxing Chemical Co., Ltd. and Tianjin Soda Plant, together with its subsidiary, Tianjin Port Free Trade Zone Pan Bohai International Trading Co., Ltd., nor the Government of China, participated in the investigation. Therefore, the preliminary rate for all Chinese exporters is 93.56 percent based on adverse facts available.
“As a result of the investigation, the Department of Commerce examined the facts and preliminarily found that China has subsidized imports of sodium nitrite sold in the United States,” said Assistant Secretary for Import Administration David Spooner. “The Administration is committed to aggressively enforcing U.S. trade laws to achieve a strong and fair trading relationship. Commerce commonly investigates both dumping and subsidy claims and conducts all of its trade remedy proceedings on a case-by-case basis.”
The merchandise covered by this investigation is sodium nitrite at any purity level that may or may not contain an anti-caking agent. Examples of names commonly used to reference sodium nitrite are nitrous acid, sodium salt, anti-rust, diazotizing salts, erinitrit, and filmerine. In addition to various industrial uses, sodium nitrite can be used as a diesel fuel additive, a “volatile corrosion inhibitor,” in the manufacture of dyes and synthetic rubbers, in wastewater treatment, and in the curing of meats. The petitioner for this investigation is General Chemical LLC from Parsippany, NJ.
The Department of Commerce is charged with the enforcement of U.S. trade remedy laws including enforcing our domestic anti-subsidy law, the CVD law. Anti-dumping trade rules and countervailing duty trade rules are both tools that are sanctioned by the WTO to deal with unfair pricing and subsidization of imports. Government subsides distort the free flow of goods and adversely affect American business in the global marketplace. Foreign governments subsidize industries when they provide financial assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, credits against taxes, and loans at terms that do not reflect market considerations. The statute and regulations establish standards for determining when an unfair subsidy has been conferred. The amount of subsidies the foreign producer receives from the government is the basis for the subsidy rate by which the subsidy is offset or “countervailed.”
For more information about Import Administration or for the fact sheet on today's final determination, please visit www.trade.gov/ia.
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