MSG Imports from China and Indonesia Could Face AD/CV Duties
Imports of monosodium glutamate from China and Indonesia could be hit with substantial antidumping and/or countervailing duties if the U.S. government acts on a petition filed Sept. 16 by Ajinomoto North America Inc. The petitioner alleges that MSG from these two countries is being sold at less than fair value (dumped) in the U.S. and that Chinese and Indonesian producers of MSG benefit from countervailable subsidies. Alleged dumping margins range from 64.77% to 204.69% for China and 50.32% to 58.67% for Indonesia.
MSG is often used as a food flavoring and in pharmaceutical products. The scope of the petition includes MSG that has been blended or is in solution with other products (e.g., salts, sugars, starches, maltodextrins and various seasonings) when the resulting mix contains 15% percent or more of MSG by dry weight. The petition also covers MSG regardless of physical form (including 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 C5H8NO4Na, a Chemical Abstract Service registry number of 6106-04-3 and a Unique Ingredient Identifier number of W81N5U6R6U. Covered merchandise is currently classified under HTSUS subheading 2922.42.1000 and may also enter under HTSUS subheadings 2922.42.5000, 2103.90.7200, 2103.90.7400, 2103.90.7800, 2103.90.8000 and 2103.90.9091.
The International Trade Administration and the International Trade Commission will next determine whether to launch AD/CV duty and injury investigations, respectively, on the subject merchandise. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.