China: The preliminary ruling on the anti-dumping investigation of imported propionic acid originating from the United States

On April 19, 2024, The Ministry of Commerce of the People's Republic of China (MOFCOM) issued Announcement No. 15 of 2024, stating a preliminary ruling on the anti-dumping investigation into imported propionic acid from the United States. The investigation found evidence of dumping, substantial damage to the domestic industry, and a causal link between the two. As a result, temporary anti-dumping measures in the form of security deposits will be imposed from April 20, 2024. Importers of U.S. propionic acid must pay a deposit based on a rate of 43.5% of the customs-approved duty-paid price, adjusted for import VAT. The product under investigation is used mainly in preservatives, fungicides, herbicides, and pharmaceutical intermediates. Interested parties have 10 days from the announcement to submit written comments.

Name:

Propionic acid abbreviated as PA

Origin:

The United States

Classification:

Propionic acid classified under subheading 2915.50.10 of the Import and Export Tariffs of the People's Republic of China; and

Physical and chemical properties:

Propionic acid usually appears as a colourless or slightly yellow liquid at room temperature, has a pungent odour, is flammable, is miscible with water, and is also soluble in organic solvents such as ethanol and ether. Propionic acid has active chemical properties and can generate salts, esters, acid chlorides, amides, acid anhydrides and other chemicals through chemical reactions.

Target entities:

U.S companies

Imposed rate:

43.5%

Starting from April 20, 2024, when importing propionic acid originating in the United States, importers should provide corresponding deposits to the Customs of the People's Republic of China based on the deposit ratio determined in the preliminary ruling. The deposit is levied ad valorem based on the duty-paid price approved by the customs. The calculation formula is deposit amount = (duty-paid price approved by the customs × deposit collection ratio) × (1 + import VAT rate).

Address:

No. 2 East Chang'an Street, Beijing, China, 100731

Department:

Import Investigation Division Three, Trade Remedy and Investigation Bureau

0086-10-65198740

0086-10-65198477

Fax:

0086-10-65198172

Thomson Reuters ONESOURCE™ Global Trade Content for information on Anti-Dumping (AD) and Countervailing Duties (CVD) rates. Utilizing such tools can be extremely helpful for trade compliance professionals who need to access up-to-date tariff and trade remedy information. ONESOURCE™ Global Trade Content, being a comprehensive database, provides detailed information that can help professionals stay compliant with the latest regulations, including those from China's new tariff law.