AD/CVD Petitions Filed on Erythritol

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Dec. 20, 2024
By: Chaney A. Finn

On December 13, 2024, agriculture giant Cargill, Inc. filed a petition with the Commerce Department and the International Trade Commission requesting the imposition of antidumping (AD) and countervailing (CVD) duties on U.S. imports of erythritol from the People’s Republic of China. Erythritol is a naturally abundant sweetener used in calorie-reduced foods, candies, and baked goods.

The petitions allege that the domestic erythritol industry has been injured from unfair trade practices, due to imports from China being subsidized and then sold at less-than fair value.

The petition proposes the following scope for the investigations:

    The product within the scope of this investigation is erythritol, which is a sugar alcohol, commonly referred to as a polyol, typically produced by the fermentation of glucose using enzymes and yeast or yeast-like fungi (though the scope includes erythritol produced using any other feedstock or organism). Erythritol is an organic compound with the molecular formula C4H10O4 and a Chemical Abstract Service (“CAS”) registry number of 149-32-6. Other names for erythritol include meso-erythritol, (2R, 3S)-butan-1,2,3,4-tetrol, butane 1,2,3,4-tetrol, or meso-1,2,3,4-Tetrahydroxybutane.

    Erythritol typically appears as a white crystalline, odorless product that rapidly dissolves in water. While erythritol is typically produced in the crystalline form or as a fine powder or in directly compressible form, the scope of these investigations covers all physical forms and grades of erythritol.

    The merchandise covered by this investigation is classifiable under HTSUS subheadings 2905.49.4000 and 2106.90.9998.

Dumping margins are estimated to be between 270% – 450.64% which could serve as the AD duty rate if Commerce and the ITC affirmatively find that imports are preventing the establishment of or causing material injury and/or threat of material injury to domestic industry.

The domestic industry is invited to submit comments to the ITC ahead of initiating the investigation. These comments would support the determination of 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. Comments are due by January 2, 2025.

Commerce will have 20 days to decide whether to launch an investigation and the ITC will issue its preliminary determinations within 45 days of the investigation initiation (January 27, 2025). A Preliminary Conference on the matter is scheduled for Friday, January 3, 2025.

Should you have questions regarding the scope of the case, managing imports during the course of the investigations, or any other trade-related questions, do not hesitate to contact any attorney at Barnes, Richardson & Colburn.