The US launches anti - dumping and counter - vailing investigations on Chinese vanillin, and the market situation changes again!

On June 26, 2024, the U.S. Department of Commerce announced the initiation of anti-dumping and countervailing investigations against vanillin imported from China, following an application by U.S. company Solvay USA LLC. The investigation covers vanillin products classified under U.S. Harmonized Tariff Schedule codes 2912.41.0000 and 2912.42.0000.

Investigation Background and Initiation

The investigation stems from an application filed by Solvay USA LLC with the U.S. Department of Commerce on June 5, 2024, alleging that Chinese vanillin exports were being dumped and receiving unfair subsidies, causing or threatening to cause material injury to the U.S. domestic industry. According to U.S. statistics, the value of vanillin imports from China in 2023 was approximately $38.79 million.

Investigation Process and Timeline

According to the announcement, the U.S. International Trade Commission (ITC) is expected to make a preliminary injury determination no later than July 22, 2024. If the ITC determines that imports of Chinese vanillin have caused or threaten to cause material injury to the U.S. domestic industry, the U.S. Department of Commerce will proceed with in-depth investigations, with the following tentative schedule:

• Preliminary counter - vailing rulingPreliminary determination on countervailing duties: Expected by August 29, 2024.
• Preliminary anti - dumping rulingPreliminary determination on anti-dumping duties: Expected by November 12, 2024.

Anti-Dumping and Countervailing Duty Provisions

The anti-dumping investigation aims to determine whether Chinese exporters are selling vanillin products in the U.S. market at less than fair value, thereby creating unfair competition for U.S. producers of similar products. The countervailing investigation seeks to assess whether the Chinese government has provided unfair financial subsidies to these export products, enabling Chinese companies to compete internationally at lower costs.

Procedures and Impacts

If the ITCs preliminary determination finds material injury or threat thereof, the U.S. Department of Commerce will continue its investigation and ultimately determine specific anti-dumping and countervailing duty rates. If the final determinations confirm the existence of dumping and subsidies, the U.S. Department of Commerce will formally impose anti-dumping and countervailing duties on vanillin imported from China. This will directly affect the import costs of related products and may significantly impact vanillin trade between China and the U.S.

Next Steps

If the preliminary anti-dumping and countervailing determinations support the petitioners claims, the U.S. Department of Commerce will implement provisional anti-dumping and countervailing measures on Chinese vanillin products in accordance with the law. These measures will remain in effect temporarily until the final determinations to prevent further market injury. The final determinations will determine whether these measures become permanent and may influence future import policies and market structures.

Original text:Commerce Initiates Antidumping and Countervailing Duty Investigations of Vanillin from the People’s Republic of China