New Trade Case on Imports of Urea Ammonium Nitrate Solutions From Russia and Trinidad and Tobago

A new U.S. antidumping (“AD”) and countervailing duty (“CVD”) petition was filed on June 30 by CF Industries Nitrogen, LLC and its subsidiaries, Terra Nitrogen, Limited Partnership, and Terra International (Oklahoma) LLC, against imports of urea ammonium nitrate (“UAN”) solutions from Russia and the Republic of Trinidad and Tobago.

The merchandise covered by this petition covers UAN, a distinctive type of nitrogen fertilizer. It is a clear liquid mixture of urea and ammonium nitrate in water, typically sold with a nitrogen content by weight of 28, 30, and 32 percent. Nitrogen fertilizers are characterized primarily by the presence of nitrogen, one of the nutrients essential for crop development. UAN is a major nitrogen solution fertilizer produced and consumed in the United States and is the most commonly used direct application nitrogen fertilizer in the United States. UAN has grown in popularity over the years due to its versatility in a number of agricultural practices, economic advantages, ease of handling and transport, and safety. 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 subsidy) allegations against Russia and the Republic of Trinidad and Tobago. 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 and CVD duty margins.

The DOC’s preliminary determinations are currently scheduled for Sept. 23 (CVD) and Dec. 7 (AD) which is the date 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:

Petitioners: CF Industries Nitrogen, LLC and its subsidiaries, Terra Nitrogen, Limited Partnership and Terra International (Oklahoma) LLC

Foreign Producers/Exporters and US Importers:  Please contact us for a listing of individual companies named in the petition.

AD/CVD margins: Petitioners have alleged the following AD margins:

• Russia: an estimated dumping margin ranging between 169.96 and 391.65 percent, ad valorem, and
• Trinidad and Tobago: an estimated dumping margin of 158.81 percent ad valorem.
• For both countries, Petitioners allege a CVD margin above de minimis.

Merchandise covered by the scope of the case:

The merchandise covered by this petition is all mixtures of urea and ammonium nitrate in aqueous or ammonia solution, regardless of nitrogen concentration by weight, and regardless of the presence of additives, such as corrosion inhibitors and soluble micro or macronutrients.

The covered merchandise is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 3102.80.0000. Although the HTSUS subheadings 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.