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GNA Products: New AD/CVD Investigations Deadlines & Scope

The Commerce Department issued Federal Register notices on its recently initiated antidumping duty investigations on sodium gluconate, gluconic acid and derivative products (GNA products) from France and China (A-427-829/A-570-071), and a countervailing duty investigation on GNA products from China (C-570-072). The agency will determine whether imports of French or Chinese GNA products are being sold in the U.S. at less than fair value, and whether Chinese imports are illegally subsidized.

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The CV duty investigation of China covers entries on Jan. 1, 2016, through Dec. 31, 2016. The AD duty investigation of France covers entries on Oct. 1, 2016, through Sept. 30, 2017, and the AD duty investigation of China covers entries on April 1, 2017, through Sept. 30, 2017.

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized GNA products are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Jan. 16, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in February for CV duties and May for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.

If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the antidumping duty "China-wide rate," which can reach over 200 percent for some products. Separate rate applications from Chinese producers and exporters are due on or about Feb. 5.

AD/CVD Respondent Selection

For the China AD duty investigation, Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection in that investigation on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one. Quantity and value questionnaires will be available on the Commerce website. Responses are due Jan. 4.

For the France AD duty investigation, Commerce says it intends to examine the only known French producer of subject merchandise, Jungbunzlauer, S.A. Comments on respondent selection in the France investigation are due Jan. 9.

For the China CV duty investigation, Commerce will select respondents based on CBP import data. Commerce intends to finalize its selection of respondents by Jan. 24.

Scope of the AD/CVD Investigations

The scope of this investigation covers all grades of sodium gluconate, gluconic acid, liquid gluconate, and glucono delta lactone (GDL) (collectively GNA Products), regardless of physical form (including, but not limited to substrates; solutions; dry granular form or powders, regardless of particle size; or as a slurry). The scope also includes GNA Products that have been blended or are in solution with other product(s) where the resulting mix contains 35 percent or more of sodium gluconate, gluconic acid, liquid gluconate, and/or GDL by dry weight.

Sodium gluconate has a molecular formula of NaC6H11O7. Sodium gluconate has a Chemical Abstract Service (CAS) registry number of 527-07-1, and can also be called “sodium salt of gluconic acid” and/or sodium 2, 3, 4, 5, 6 pentahydroxyhexanoate. Gluconic acid has a molecular formula of C6H12O7. Gluconic acid has a CAS registry number of 526-95-4, and can also be called 2, 3, 4, 5, 6 pentahydroxycaproic acid. Liquid gluconate is a blend consisting only of gluconic acid and sodium gluconate in an aqueous solution. Liquid gluconate has CAS registry numbers of 527-07-1, 526-95-4, and 7732-18-5, and can also be called 2, 3, 4, 5, 6-pentahydroxycaproic acid-hexanoate. GDL has a molecular formula of C6H10O6. GDL has a CAS registry number of 90-80-2, and can also be called d-glucono-1,5-lactone.

The merchandise covered by the scope of this investigation is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 2918.16.1000, 2918.16.5010 and 2932.20.5020. Merchandise covered by the scope may also enter under HTSUS subheadings 2918.16.5050, 3824.99.2890 and 3824.99.9295. Although the HTSUS subheadings and CAS registry numbers are provided for convenience and customs purposes, the written description of the merchandise is dispositive.

Comments on the scope of these investigations are due by Jan. 9.

Investigations Timetable

EventAD DutyCV Duty
Petitions filed11/30/1711/30/17
DOC initiation date12/20/1712/20/17
ITC prelim determinations*01/16/1801/16/18
DOC prelim determinations†05/09/1802/23/18
DOC final determinations†07/23/1805/09/18
ITC final determinations‡09/06/1806/25/18
Issuance of orders+09/13/1807/02/18

*If the ITC makes a negative determination of injury, the investigations are terminated.

†These deadlines may be extended under the governing statute.

‡This will take place only in the event of Commerce Department final affirmative determinations.

+This will take place only in the event of Commerce and ITC final affirmative determinations.

(See 1712050028 for a summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)

The AD duty initiation notice is (here).

The CV duty initiation notice is (here).

The Commerce Department fact sheet on the initiation of these investigations is (here).

(Federal Register 01/04/18)