China Lysine: New AD/CVD Investigations Deadlines & Scope

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized lysine are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due July 14, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, due in August for CVD and in November for AD, it will set AD and/or CVD cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CVD order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CVD on importers and potentially set new AD/CVD cash deposit rates.

AD/CVD Respondent Selection

For its CVD investigation, Commerce said it will select respondents for individual examination based on CBP import data. For its AD investigation, Commerce said it will pick respondents for individual examination by issuing quantity and value questionnaires to the largest producers and/or exporters that are identified in CBP entry data and have complete address information on the record.

Exporters that don't get a quantity and value questionnaire can submit one using the forms available on Commerce's website. Responses are due July 1 at 5 p.m. EDT.

Companies subject to the AD investigations on China also will have to submit a separate rate application to avoid getting the high China-wide rate. Separate rate applications will be due 21 days from the publication date of Commerce's AD initiation notice (i.e., July 15).

Scope of the AD/CVD Investigations

"The scope of this investigation covers animal feed grade L-lysine (lysine). Lysine is an essential amino acid added to animal feed that is used in the biosynthesis of proteins. The scope covers lysine regardless of form, including lysine monohydrochloride, also referred to as lysine HCL, lysine sulfate, and liquid lysine. The scope includes lysine that has been coated or encapsulated for use with ruminants to ensure bioavailability.

"Lysine HCL in the dry form has the molecular formula C6 H14 N2 O2 HCl. The Chemical Abstracts Service (CAS) registry number for lysine HCL is 657-27-2. Lysine HCL contains a minimum of 78 percent lysine by weight, as well as additional amino acids, carbohydrates, mineral salts, and organic acids. Lysine sulfate is the sulfate salt of lysine, and in the dry form it has the molecular formula C6 H16 N2 O6 S. The CAS registry number for lysine sulfate is 60343-69-3. Lysine sulfate typically contains approximately 40-70 percent lysine by weight, as well as additional amino acids, carbohydrates, mineral salts, and organic acids. Liquid lysine is a concentrated form of lysine in an aqueous solution with the molecular formula C6 H14 N2 O2. The CAS registry number for liquid lysine is 56-87-1. Liquid lysine normally contains at least 50 percent lysine by weight, as well as additional amino acids, carbohydrates, mineral salts, and organic acids.

"The scope includes animal feed grade lysine that is combined with other products, including for example, by mixing, blending, compounding, or granulating ( e.g., base mixes, premixes, and concentrates). For such combined products, only the lysine component is covered by the scope of this investigation.

"Subject merchandise also includes lysine that has been processed in a third country, including by commingling, diluting, adding or removing additives, refining, converting from liquid to dry or dry to liquid form, coating or encapsulating, or performing any processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the subject country.

"The merchandise covered by this investigation is properly classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2922.41.0090. Lysine may also be classified under HTSUS subheadings 2922.41.0010, 2922.49.4950, 2309.90.7000, and 2309.90.9500. Although the HTSUS subheadings and the CAS registry numbers are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive."

Comments on the scope of these investigations are due by 5 p.m. ET on July 7.

Investigations Timetable

These may be, and usually are, extended. The Commerce Department fact sheet on the initiation of these investigations is (here). See 2505290046 for a summary of the petition requesting these investigations.