Sandler, Travis & Rosenberg Trade Report
U.S. producers of textiles, leather, flame retardant materials and other goods could face an enormous increase in import tariffs on a key input if a new antidumping and countervailing duty petition is successful. The petitioner is alleging dumping margins of 273.33 percent to 474.94 percent for ammonium sulfate from China, which is also used as a fertilizer on a variety of crops, turf, and fruit and nut trees as well as in the production of food and feed additives, biotechnology products, wall board, and pulp and paper products.
The petition covers ammonium sulfate in all physical forms, with or without additives such as anti-caking agents. The scope includes ammonium sulfate that is combined with other products, such as by blending (e.g., mixing granules of ammonium sulfate with granules of one or more other products), compounding (e.g., compacting ammonium sulfate with one or more other products under high pressure) or granulating (e.g., incorporating multiple products into granules through a slurry process), regardless of whether the combining occurs in third countries. For combined products, only the ammonium sulfate component is covered by the scope. However, ammonium sulfate that is otherwise subject to this investigation is not excluded when commingled with ammonium sulfate from sources other than China. Ammonium sulfate is currently classifiable under HTSUS subheading 3102.21.0000.
The Department of Commerce and the International Trade Commission will next determine whether to launch AD and/or CV duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.
For more information contact Kristen Smith at (202) 730-4965 or Mark Ludwikowski at (202) 730-4967.