China MSG: Duty Rates Plummet in Final AD Duty Determination
The Commerce Department issued its final determination in the antidumping duty investigation on monosodium glutamate from China (A-570-992). The agency also made a change to the scope of duties to clarify that both monohydrous and anhydrous forms of MSG are covered. The final determination is effective Sept. 29.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The next step is for the International Trade Commission to make its final injury determination, currently scheduled for Nov. 6. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.
Commerce Clarifies Scope Coverage
In response to a request for clarification from the ITC, the Commerce Department made changes to the scope that specify MSG is included in the investigation whether in monohydrate or anhydrous form. The new scope language defines MSG in monohydrate form as having "a molecular formula of C5H8NO4Na -H2O, a Chemical Abstract Service (CAS) registry number of 6106-04-3, and a Unique Ingredient Identifier (UNII) number of W81N5U6R6U." MSG in anhydrous form "has a molecular formula of C5H8NO4 Na, a CAS registry number of l42-47-2, and a UNII number of C3C196L9FG," according to the new scope provisions.
Suspension of Liquidation Still Retroactive 90 Days
Commerce continued to find "critical circumstances" for all Chinese companies, because they allegedly increased sales of subject merchandise in the U.S. before the preliminary determination in an attempt to get in as much MSG as possible before duties were imposed. As such, it will order CBP to continue to suspend liquidation for all subject merchandise for these three companies entered on or after Feb. 7, the date 90 days prior to the preliminary determination.
Estimated AD Cash Deposit Rates
Commerce will instruct CBP to require an AD cash deposit for all imports of subject merchandise from China equal to the following AD rates:
| Exporter | AD Rate |
| Langfang Meihua Bio-Technology Co., Ltd./Meihua Group International Trading (Hong Kong) Limited | 8.3% (from 157.59%) |
| Fujian Province Jianyang Wuyi MSG Co., Ltd. | 8.3% (from 157.59%) |
| Neimenggu Fufeng Biotechnologies Co., Ltd. | 8.3% (from 157.59%) |
| Baoji Fufeng Biotechnologies Co., Ltd. | 8.3% |
| China-wide entity* | 8.32% (from 157.59%) |
*Includes Shandong Linghua Monosodium Glutamate Incorporated Company, as well as all companies and exporter-producer combinations that are not being assigned their own rate in this investigation.
(The period of investigation is 01/01/13 -- 06/30/13. See Commerce’s notice for more information, including the scope of the investigation, detailed instructions on cash deposit rates, etc. See 14050715 for summary of the preliminary determination of this investigation.)
AC/CVD Operations contact -- Milton Koch (202) 482-2584
(Federal Register 09/29/14)