Domestic Producer of Pea Protein Requests Imposition of Antidumping and Countervailing Duties on Imports From China

ArentFox Schiff

On July 12, 2023, PURIS Proteins LLC, a domestic producer of pea protein, which is a plant-based protein used in foods, filed antidumping and countervailing duties (AD/CVD) petitions requesting trade relief on imports of certain pea protein from China. These petitions concern imports of pea protein with a protein content higher than 65% on a dry weight basis (HPC pea protein), also known as high protein content pea protein, used in many foods, from plant-based meat products to snack bars, cereal, baby food, soups or juice products, as an alternative to animal protein.

PURIS Proteins alleges that imports of HPC pea protein from China are injuring the US domestic industry because they are sold in the United States for less than “normal value” and that imports are unfairly subsidized.

PURIS Proteins requests the imposition of significant additional duties, estimating margins of dumping between 23.86% to 291.74% on imports from China. The domestic producer also alleges that imports of this product are benefiting from numerous countervailable subsidies, in the form of tax programs, grants, loans, and other programs provided by the Government of China and by provincial and local governments in China. AD/CVD duties will be imposed if the US Department of Commerce (DOC) determines that such alleged dumping is occurring and if the US International Trade Commission (ITC) determines that there is “material injury” (or the threat thereof) because of the dumped or subsidized imports.

If the investigations are affirmative, importers of HPC pea protein from China will be liable for any potential AD and/or CVD duties imposed. These investigations may also impact US purchasers via increased prices or decreased supplies of certain pea proteins. Imports of HPC pea protein from China are also currently subject to Section 301 (Lists 3 and 4A) duties.

Scope of Investigations

Per the petition, the scope of these investigations covers HPC pea protein in all physical forms, including all liquid (e.g., solution) and solid (e.g., powder) forms, regardless of packaging. The scope includes HPC pea protein that is blended, combined, or mixed with non-subject pea protein or with other products, including, but not limited to, protein powders, dry beverage blends, and protein-fortified beverages. For any such blended, combined, or mixed products, PURIS Proteins requests that only the HPC pea protein component be covered by the scope of these investigations.

However, PURIS Proteins also includes HPC pea protein that has been blended, combined, or mixed with other products within the proposed scope, regardless of whether the blending, combining, or mixing occurs in third countries. HPC pea protein that would otherwise be within the scope is also covered when commingled (i.e., blended, combined, or mixed) with HPC pea protein from sources not subject to this investigation. Only the subject component of the commingled product would be covered by the scope.

Excluded from the scope of PURIS Protein’s petition:

  • A blend, combination, or mixture if the total HPC pea protein content of the blend, combination, or mixture (regardless of the source or sources) comprises less than 5% = of the blend, combination, or mixture on a dry weight basis.

HPC pea protein is classified under the United States Harmonized Tariff Schedule subheadings 2106.10.0000, 3504.00.1000, 3504.00.5000. Such merchandise may also enter the US market under HTSUS category 2308.00.9890.

Estimated Key Dates of Interest to Exporters and US Importers

The following are estimated key dates for these investigations, once initiated by the DOC and the ITC:

First Deadlines:
ITC Preliminary Injury Phase

approx. July 26, 2023questionnaire responses will be due.
August 2, 2023 – ITC Preliminary Staff Conference
August 28, 2023 - ITC Preliminary injury determination
Commerce Initiation Date August 1, 2023

Commerce Preliminary AD Determinations

December 19, 2023 - AD preliminary determination

The preliminary results deadline can be extended.

Commerce Preliminary CVD Determinations

October 5, 2023 - CVD preliminary determination

The preliminary results deadline can be extended.

Earliest Suspension of Liquidation (theoretical) August 1, 2023 – Subject to both affirmative critical circumstances finding by ITC and DOC.

Additional research and writing from Denny Peixoto, a 2023 summer associate in ArentFox Schiff's Washington, DC office and a law student at Penn State Law.

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