Antidumping duty investigation of pea protein imports from China: What does it mean for you?

Dumped and subsidized pea protein imports from China have made it impossible for domestic producers to obtain a fair rate of return.

FAQs:

• What is this proceeding about? 
  The U.S. Department of Commerce preliminarily determined that certain pea protein imported from the People’s Republic of China are subject to antidumping and countervailing duties because Chinese imports are sold at less than fair value and the Chinese industry benefits from unlawful subsidies. 
  
  
• What is a “countervailable” subsidy? 
  A subsidy is a financial contribution provided by a government or any public body which confers a benefit to an entity. Subsidies are “countervailable” if they are provided specifically to certain enterprises or industries, or groups thereof.¹ 
  
  
• What is antidumping? 
  A product is “dumped” when a foreign producer sells its product at a lower price in the importing country than it does in its home country (i.e., China), in other primary markets, or below its production costs.¹ 
  
  
• What products are subject to these proceedings?
  The product within the scope of these investigations is high protein content (HPC) pea protein, which is a protein derived from peas (including, but not limited to, yellow field peas and green field peas) and which contains more than 65 percent protein on a dry weight basis from China.
  
  
• When are the countervailing duty amounts and when do they take effect?
  On December 12, 2023, the U.S. Department of Commerce (“Commerce”) announced its Countervailing Duty (“CVD”) Preliminary Determination regarding imports of certain pea protein from China.
  
  Commerce has instructed U.S. Customs and Border Protection (“CBP”) to collect retroactive CVD deposits – in the range of 15-343% ad valorem, depending on the importing company – on certain protein pea previously imported from China entered on or after September 19, 2023. Moving forward, CBP will collect CVD deposits (at these same rates) on protein pea isolate imports from China.   
  
  
• What are the antidumping duties and when do they take effect? 
  On February 8, 2024, Commerce announced its separate Antidumping Duty (“AD”) Preliminary Determination regarding imports of certain pea protein from China.
  
  Effective February 13, 2024, CBP will impose AD duties at the U.S. border ranging from 112-270% ad valorem, depending on the Chinese exporter/producer, on pea protein imported from China.
  
  CBP may seek to collect retroactive AD duty deposits (at the same rates) on imports of pea protein that entered the U.S. market as early as November 15, 2023. These steep AD duties when imposed would be in addition to the countervailing duties previously announced by Commerce in December 2023.
  
  Commerce’s final antidumping and countervailing duty determinations will be made in late June 2024.
  
  
• What is the combined AD and CVD duties?
  AD and CVD duty deposit liability is cumulative, meaning that U.S. importers of protein pea from China could face duties of approximately 127% - to as high as 613% ad valorem — with duty deposits also being collected retroactively.
  
  
• Where can I secure supply of pea protein that is safe against such tariffs? 
  Ingredion is proud to source peas in North America and sustainably produce them in South Sioux City, Nebraska, making them free from AD/CVD liability. 
  
  
• How can I order a sample of pea protein isolate from Ingredion?
  To order a sample of pea protein isolate that is sourced and produced from North America, contact your sales representative or click here. 

Secure a North American supply of pea protein isolates  

We believe in a market governed by fair trade practices. Our pea protein isolates are produced in the U.S. and we are dedicated to your success. The time is now to buy your pea protein isolates from a domestic source. 

Source:

1. U.S. Antidumping & Countervailing Duties, International Trade Association, https://www.trade.gov/faq/faqs-preliminary-determination-antidumping-duty-andor-countervailing-duty-investigation-0