PCI Nitrogen LLC, Pasadena, Texas, today applauded the preliminary determination of the U.S. Department of Commerce (DOC) that imports of ammonium sulfate into the United States from China are being subsidized.
DOC on Oct. 25 released its preliminary determination in the subsidy investigations, finding that imports of ammonium sulfate from China were subsidized at a rate of 206.72 percent ad valorem. As a result, DOC will instruct U.S. Customs and Border Protection (Customs) to begin collecting cash deposits or bonds on imports of ammonium sulfate from China equal to the preliminary subsidy rates.
“We welcome the U.S. government’s determination that our competitors benefit from substantial government subsidies,” said PCI Nitrogen in a statement. “Domestic producers and employees have been severely injured by dumped and subsidized imports from China, and the imposition of countervailing duties is a critical step in remedying these unfair trade practices.”
DOC is due to issue its preliminary determinations in the companion antidumping investigations by Nov. 1, 2016. The petitions filed with the U.S. government allege that imports from China are being dumped at rates between 251 and 493 percent ad valorem. Customs will collect estimated antidumping duties from importers following the issuance of these preliminary determinations in November.
Countervailing and antidumping duties are imposed cumulatively, meaning the aggregate remedial duties are expected to increase after the preliminary antidumping investigations. Final determinations in both the subsidies and antidumping investigations are expected by mid-January 2017.
PCI Nitrogen said it will be actively working with Customs to ensure that importers fully comply with their obligation to pay the additional duties imposed as a result of these investigations. The company noted that the failure by importers to declare entries as being subject to antidumping and countervailing duties undermines the relief for these unfair trade practices and may result in severe civil or criminal penalties, including imprisonment.