China MSG: Prelim CV Cash Deposit Rates Take Effect; Retroactive 90 Days
A countervailing duty cash deposit requirement will take effect March 11 for imports of monosodium glutamate from China (C-570-993), as the Commerce Department found illegal subsidization of Chinese producers in its preliminary determination. Commerce is making the suspension of liquidation and CV duty cash deposits retroactive for entries on or after Dec. 11. Shortly after Commerce announced its preliminary determination, domestic industry withdrew its requests for CV duties on MSG from China and Indonesia, so it is unclear what will become of the new cash deposit requirements.
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Commerce is also considering the imposition of antidumping duties on MSG from China. The agency's preliminary AD duty determination is currently due May 1 (see 14020415).
Commerce Finds Critical Circumstances; Cash Deposits Retroactive 90 Days
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 CV duties. This "critical circumstances" finding by the agency allows it to retroactively suspend liquidation for all Chinese companies back to 90 days before the preliminary determination, i.e. Dec. 11.
AJINA Withdrew Request for Investigation
Shortly after Commerce decided to impose CV duties on MSG from China, Ajinomoto North America (AJINA) withdrew its petitions for CV duty investigations (see 14031035). The end of the investigations isn't automatic -- Commerce will decide whether termination is in the public interest. A lawyer involved with the case thinks the process will take a couple of weeks. It is unclear what will happen to any cash deposits collected, but in investigations terminated for other reasons any cash deposits collected are refunded.
CV Suspension of Liquidation and Cash Deposit Requirements
Nonetheless, Commerce says it will instruct CBP to suspend liquidation for all entries of subject merchandise from China that are entered, or withdrawn from warehouse, for consumption on or after Dec. 11. Preliminary CV cash deposit rates are as follows:
| Company | Prelim CV Rate |
| Langfang Meihua Bio-Technology Co., Ltd. and Tongliao Meihua Biological Sci-Tech Co., Ltd. | 13.41% |
| Henan Lotus Flower Gourmet Powder Co., Ltd. | 404.03% |
| All Others | 13.41% |
(The period of investigation is 01/01/12 - 12/31/12. See Commerce's notice for more information, including the scope (unchanged since initiation), suspension of liquidation, etc. See 13103018 for summary of the initiation of this CV duty investigation, and 13091909 for summary of the underlying petition.)
AD/CVD Operations contact -- Jun Jack Zhao (202) 482-1396