Domestic Producer Asks for New AD/CV Duties on MSG from China and Indonesia
The U.S. affiliate of a Japanese company requested on Sept. 16 new antidumping and countervailing duties on monosodium glutamate (MSG) from China and Indonesia. Ajinomoto North America (AJINA), whose parent company in Japan was the first company in the world to market MSG in 1909, alleges that low-priced and unfair competition in China and Indonesia is rapidly gaining U.S. market share and causing lost revenues and profits. MSG is a food additive that is mainly used to enhance flavors (the Japanese name Ajinomoto translates to “essence of taste” in English). Some MSG is also used as a biodegradable “builder” ingredient in detergents like laundry and dish soap, the petition said. Ajinomoto has a factory in Iowa and is the only domestic producer of the product, it said.
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According to the petition, U.S. imports of MSG from China and Indonesia spiked between 2010 and 2012. U.S. market share held by producers in those countries rose from 18 to 46 percent during the period. Meanwhile, AJINA’s domestic market share fell from 87 to 45 percent. Underselling by Chinese and Indonesian companies has resulted in a price/cost squeeze for AJINA, because MSG is sold as a commodity with competition based mainly on price.
MSG from China is already subject to antidumping duties in the European Union. The duties were requested by AJINA’s European affiliate.
Proposed Scope
The petition proposed that the Commerce Department and the International Trade Commission define the scope of their investigations as follows:
“The scope of this investigation covers monosodium glutamate (‘MSG’), whether or not blended or in solution with other products. Specifically, MSG that has been blended or is in solution with other product(s) is included in this scope when the resulting mix contains 15% percent or more of MSG by dry weight. Products with which MSG may be blended include, but are not limited to, salts, sugars, starches, maltodextrins, and various seasonings. Further, MSG is included in this investigation regardless of physical form (including, but not limited to, substrates, solutions, dry powders of any particle size, or unfinished forms such as MSG slurry), end-use application, or packaging.
“MSG has a molecular formula of C5118NO4Na, a CAS (Chemical Abstract Service) registry number of 6106-04-3, and UNII (Unique Ingredient Identifier) number of W81N5U6R6U.
“Merchandise covered by the scope of this investigation is currently classified in the Harmonized Tariff Schedule (‘HTS’) of the United States at subheading 2922.42.10.00. Merchandise subject to the investigation may also enter under HTS subheadings 2922.42.50.00, 2103.90.72.00, 2103.90.74.00, 2103.90.78.00, 2103.90.80.00, and 2103.90.90.91. These tariff classifications are provided for convenience and customs purposes; however, the written description of the scope is dispositive.”
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations on MSG from China and Indonesia. AJINA says it meets petition support requirements because it is the only domestic producer of MSG. Comments are due by about Oct. 6.
Email ITTNews@warren-news.com for a copy of the petition.