China MSG: Prelim AD Cash Deposit Rates Skyrocket After Commerce Corrects Error
The Commerce Department is amending its preliminary determination in the antidumping duty investigation on monosodium glutamate (MSG) from China (A-570-992), after finding several errors. The corrections will increase AD duty cash deposit rates by over 100% for all Chinese companies. The new AD cash deposit rates take effect June 13.
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Liquidation Suspended Since Feb. 7
In its original preliminary determination, Commerce made a finding that Chinese companies increased their MSG exports to the U.S. in the run up to the preliminary determination in an attempt to get in as much product as possible before the imposition of AD duties. That "critical circumstances" finding allowed it to retroactively suspend liquidation for all Chinese companies back to 90 days before the preliminary determination, i.e. Feb. 7.
New AD Cash Deposit Requirements for 'All Suspended Entries' Beginning June 13
Commerce is now amending the AD duty cash deposit requirements it set in its original preliminary determination, after finding errors in its calculations for Meihua. The new cash deposit requirements apply to "all suspended entries" on or after June 13, as follows:
| Exporter | Prelim AD Rate |
| Langfang Meihua Bio-Technology Co., Ltd./Meihua Group International Trading (Hong Kong) Limited | 157.59% (from 52.24%) |
| Fujian Province Jianyang Wuyi MSG Co., Ltd. | 157.59% (from 52.24%) |
| Neimenggu Fufeng Biotechnologies Co., Ltd. | 157.59% (from 52.24%) |
| China-wide Entity | 157.59% (from 52.24%) |
(The period of investigation is 01/01/12 - 06/30/13. See Commerce's notice for more information, including the scope (unchanged from the initiation), suspension of liquidation, detailed cash deposit instructions, etc. See 14050715 for summary of the original preliminary determination issued May 8.)
AD/CVD Operations contact -- Milton Koch (202) 482-2584
(Federal Register 06/13/14)