New AD/CVD Petitions: Erythritol from China

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AD/CVD Petitions Against Erythritol from China

On December 13, 2024, new antidumping (AD) and countervailing duty (CVD) petitions were filed against imports of erythritol from China. Erythritol is a natural sugar alternative.

The petition was filed by one U.S. producer, Cargill, who states that they are the only U.S. producer erythritol. China accounts for almost all of the U.S. imports of erythritol. The petition alleges that Chinese erythritol companies announced and completed significant capacity expansions in 2021 to 2023, but that major Chinese beverage companies reformulated their products in 2022 and 2023, which led to excess production of erythritol in China. Chinese erythritol companies then exported significant volumes to the United States and Europe and elsewhere, which led to a collapse in market prices. The petition notes that Europe has already imposed its own antidumping duties on Chinese erythritol in July 2024. Cargill now is seeking AD/CVD duties to be imposed on Chinese erythritol imports into the United States.

These AD/CVD investigations will be conducted by two federal agencies. The International Trade Commission (“ITC”) will investigate whether the subject imports have materially retarded the establishment of the domestic industry. The U.S. Department of Commerce (“DOC”) will investigate whether the subject imports are being sold to the United States at less than fair value (“dumping”) or benefit from unfair government subsidies. Both agencies have to make affirmative findings of material retardation (ITC) or of dumping or subsidies (DOC) in order for AD/CVD duties to be imposed on the subject imports.

Scope

The petition included the following proposed scope definition:

The product within the scope of this investigation is erythritol, which is a sugar alcohol, commonly referred to as a polyol, typically produced by the fermentation of glucose using enzymes and yeast or yeast-like fungi (though the scope includes erythritol produced using any other feedstock or organism). Erythritol is an organic compound with the molecular formula C4H10O4 and a Chemical Abstract Service (“CAS”) registry number of 149-32-6. Other names for erythritol include meso-erythritol, (2R, 3S)-butan-1,2,3,4-tetrol, butane-1,2,3,4-tetrol, or meso– 1,2,3,4-Tetrahydroxybutane.

Erythritol typically appears as a white crystalline, odorless product that rapidly dissolves in water. While erythritol is typically produced in the crystalline form or as a fine powder or in directly compressible form, the scope of these investigations covers all physical forms and grades of erythritol.

The merchandise covered by this investigation is classifiable under HTSUS subheadings 2905.49.4000 and2106.90.9998. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise covered by this investigation is dispositive..