New Trade Case on Imports of Organic Soybean Meal From India
Authors
Mark R. Ludwikowski , R. Kevin Williams
A new U.S. antidumping (“AD”) and countervailing (“CVD”) duty petition was filed on March 31 by the Organic Soybean Processors of America; American Natural Processors, LLC; Lester Feed & Grain Co.; Organic Production Services, LLC; Professional Proteins, Ltd.; Sheppard Grain Enterprises, LLC, Simmons Grain Company; Super Soy, LLC; and Tri-State Crush, LLC against imports of organic soybean meal (“OSBM”) from India.
OSBM mainly serves as an animal feed ingredient for organic poultry (approximately 75% of U.S. OSBM demand) and dairy (approximately 25% of U.S. OSBM demand) with a nominal amount used for other organic livestock (e.g., pork) farming operations. For a full description of the scope of the petition, please see the Scope section below.
The petition includes AD (less than fair value) and CVD (unfair subsidies) allegations against India. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring the U.S. industry. If the ITC finds that standard is met, then the cases will move to the DOC which will calculate the preliminary AD duty margins.
The DOC’s preliminary determinations are currently scheduled for June 24 (CVD) and Sept. 7(AD), which are the dates when importers will be required to deposit the calculated duties upon the products’ entry into the U.S. market.
There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.
The following are key facts about this trade case:
Petitioner: the Organic Soybean Processors of America; American Natural Processors, LLC; Lester Feed & Grain Co.; Organic Production Services, LLC; Professional Proteins, Ltd.; Sheppard Grain Enterprises, LLC, Simmons Grain Company; Super Soy, LLC; and Tri-State Crush, LLC
Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.
AD margins: Petitioner has alleged the following AD and CVD margins:
- India: a calculated AD margin of 154.12 percent ad valorem and a CVD margin above de minimis.
Merchandise covered by the scope of the case:
The merchandise subject to the petition is certain certified organic soybean meal. Certified organic soybean meal can consist of ground soybean cake, ground soybean chips, and/or ground soybean flakes, with or without oil residues. Soybean cake is the product after the extraction of part of the oil from soybeans. Soybean chips and soybean flakes are produced by cracking, heating, and flaking soybeans and reducing the oil content of the conditioned product. “Certified organic soybean meal” is certified by the U.S. Department of Agriculture (“USDA”) National Organic Program (“NOP”) or equivalently certified to NOP standards.
The products covered by this petition are currently classified under the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 1208.10.0010 and 2304.00.0000. Certified organic soybean meal may also enter under HTSUS 2309.90.1005, 2309.90.1015, 2309.90.1010, 2309.90.1030, 2309.90.1032, 2309.90.1035, 2309.90.1045, 2309.90.1050, 2308.00.9890.
The HTSUS subheadings and specifications are provided for convenience and customs purposes; the written description of the scope is dispositive. The HTSUS subheadings and specifications are provided for convenience and customs purposes; the written description of the scope is dispositive.
If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.com; 202-640-6680), Kevin Williams (kwilliams@clarkhill.com; 312-985-5907); William Sjoberg (wsjoberg@clarkhill.com; 202-772-0924), Matthew Goldstein (mgoldstein@clarkhill.com, 202-772-0917), Courtney Gayle Taylor (cgtaylor@clarkhill.com; 202-552-2350); Dennis Devaney (ddevaney@clarkhill.com, 313-309-9454); or another member of Clark Hill’s International Trade Business Unit.