New Trade Case on Imports of Glycine from China, India, Japan and Thailand

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New US antidumping (AD) and countervailing (CVD) duty investigations were filed on March 27, 2018 by GEO Specialty Chemicals, Inc., and Chattam Chemicals, Inc., (petitioners) against imports of glycine from China, India, Japan and Thailand.

Glycine is used as a sweetener/flavor enhancer, a buffering agent (e.g., in antacids, antiperspirants and other cosmetics), a metal finishing agent, a dietary supplement, a pharmaceutical, and as a cleaner for microelectronics.

The petition includes AD (less than fair value) allegations against India, Japan and Thailand, and CVD (unfair subsidy) allegations against China, India and Thailand.

The Department of Commerce and the International Trade Commission (ITC) will next determine whether to launch AD and/or CVD duty and injury investigations, respectively, on these products. Commerce will be responsible for calculating the ultimate AD/CVD margins on the imports, while the ITC will conduct a concurrent investigation to determine if the imports are injuring the U.S. industry. If Commerce finds dumping or unfair subsidization in its preliminary determinations, currently scheduled for June 20, 2018 (CVD) and September 3, 2018 (AD), importers will be charged the calculated duties upon the products’ entry in the U.S. market.

There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know  so that we can provide you with additional information as it becomes available.

The following are key facts about this trade case:

Petitioner: GEO Specialty Chemicals, Inc., and Chattam Chemicals, Inc.

Foreign Producers/Exporters and US Importers:  Please contact us for a listing of individual companies named in the petition.

Alleged AD and CVD margins:  Petitioner has alleged the following AD margins:

  • India – 77.62 percent;
  • Japan – 516.05 percent;
  • Thailand – 207.24 percent.

Petitioners have also alleged above de minimis CVD margins against imports from China, India and Thailand.

Merchandise covered by the scope of the case: The merchandise covered by this investigation is glycine, which in its solid (i.e., crystalized) form is a free-flowing crystalline material, like salt or sugar. Glycine is produced at varying levels of purity or grades. It is used as a sweetener/taste enhancer, buffering agent, cleaning and polishing agent, and dietary supplement. It also has other pharmaceutical, industrial, medical and cosmetic applications. The scope of this investigation covers glycine in any form and at any purity level or grade, regardless of additives. Glycine’s chemical composition is C2H5NO2 and is classified, since July 1, 2017, under subheading 2922.49.43.00 of the Harmonized Tariff Schedule of the United States (HTSUS); before that date, it was classified under subheading 2922.49.40.20 of the HTSUS.

The scope of this investigation also covers precursors of dried crystalline glycine, including, but not limited to, glycine slurry (i.e., glycine in a non-crystalized form), sodium glycinate and a non-reacted ammonia-monochloroacetic or chloroacetic acid mix. Glycine slurry is classified under the same HTSUS as crystalized glycine (2922.49.43.00 as of July 1, 2017, and 2922.49.40.20 before that date), sodium glycinate is classified under HTSUS 2922.49.80.00 and the non-reacted ammonia-monochloroacetic or chloroacetic acid mix has been classified under a number of HTSUS 2922.49 subheadings. Because HTSUS subheadings are provided for convenience and Customs purposes, the written description of the scope of this investigation is dispositive.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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