United States International Trade Commission Makes Affirmative Preliminary Determination in Trade Cases on Vanillin from China
WASHINGTON (July 2024) - In a preliminary victory for the U.S. industry, the U.S. International Trade Commission (ITC) found on Friday, July 19, 2024, that there is a reasonable indication that the domestic vanillin industry is injured as a result of imports from China.
The ITC’s unanimous vote comes in response to petitions filed June 5, 2024 by Solvay USA LLC, part of the Syensqo Group. The petitions allege that unfairly dumped and subsidized vanillin is injuring the domestic industry.
“Foreign countries and producers that do not abide by international trade rules must be held accountable,” said Daniel B. Pickard, lead counsel to the petitioner and Buchanan’s International Trade and National Security Practice Group leader. “This vote takes the domestic industry one step closer to ensuring that U.S. vanillin producers can compete in a fair market.”
On June 26, 2024, the U.S. Department of Commerce announced the initiation of antidumping (AD) investigations into imports of vanillin from China. The dumping margins for imports are alleged to be as high as 1,231.35%. On the same day, the Department of Commerce also initiated a countervailing duty (CVD) investigation into vanillin from China.
The Commission’s affirmative preliminary injury determination paves the way for the Department of Commerce to move forward with its investigations. Commerce is expected to issue its preliminary CVD determination later this summer and its preliminary AD determinations in November 2024. If Commerce reaches affirmative preliminary determinations in these cases, U.S. Customs and Border Protection will begin collecting AD and CVD cash deposits based on the preliminary margins calculated.
The Commission’s final phase investigation will occur no later than July 2025. If both the Commission and Commerce reach affirmative final determinations, AD orders on vanillin from China and a CVD order on vanillin from China will be issued, imposing duties on the unfairly traded imports for a minimum of five years.
The Buchanan team representing the petitioner also includes Milton Koch, Claire Webster, Amanda Wetzel, Caroline Bisk, Natan Tubman, and Grace Welborn.