WASHINGTON (November 2024) - In a victory for the U.S. Vanillin industry, the U.S. Department of Commerce (Commerce) has preliminarily determined that the government of China unfairly subsidizes its Vanillin industry. Commerce calculated affirmative preliminary countervailing duty rates of 27.33% for all Chinese producers.
This determination establishes the preliminary duty rates for this investigation. Following the publication of Commerce's preliminary determination in the Federal Register, Commerce will instruct U.S. Customs and Border Protection to begin suspending liquidation and collecting cash deposits on entries of Vanillin from China.
These preliminary subsidy rates may increase before Commerce's final determination, which is expected in March 2025. These rates cover only the countervailing duty investigation and do not yet include the additional duties from the companion antidumping duty investigation on Vanillin from China. Preliminary dumping margins in the antidumping duty investigation will be released in February 2025.
"These preliminary rates are very gratifying," said Daniel B. Pickard, lead counsel to the Petitioner and International Trade and National Security practice group leader at Buchanan Ingersoll & Rooney. "Commerce's investigation into the Chinese government's unfair subsidization of its Vanillin industry is vital to leveling the playing field for U.S. Vanillin producers."
The Buchanan team representing the Petitioner also includes Milton Koch, Natan Tubman, Claire Webster, Amanda Wetzel, Caroline Bisk, and Grace Welborn. U.S. AD/CVD tariff laws are one of the only available tools to provide American companies trade relief and avoid lost sales and profits. The Buchanan team of international trade and national security attorneys, has decades of experience supporting clients across a range of industries – ranging from chemical, steel, rubber, mining, and agricultural products – to ensure that the U.S. market is operating under fair and equal conditions.