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Volume XIII, Number 266

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Domestic Producer of Pea Protein Requests Imposition of Antidumping and Countervailing Duties on Imports From China

On July 12, 2023, PURIS Proteins LLC, a domestic producer of pea protein, which is a plant-based protein used in foods, filed antidumping and countervailing duties (AD/CVD) petitions requesting trade relief on imports of certain pea protein from China. These petitions concern imports of pea protein with a protein content higher than 65% on a dry weight basis (HPC pea protein), also known as high protein content pea protein, used in many foods, from plant-based meat products to snack bars, cereal, baby food, soups or juice products, as an alternative to animal protein.

PURIS Proteins alleges that imports of HPC pea protein from China are injuring the US domestic industry because they are sold in the United States for less than “normal value” and that imports are unfairly subsidized.

PURIS Proteins requests the imposition of significant additional duties, estimating margins of dumping between 23.86% to 291.74% on imports from China. The domestic producer also alleges that imports of this product are benefiting from numerous countervailable subsidies, in the form of tax programs, grants, loans, and other programs provided by the Government of China and by provincial and local governments in China. AD/CVD duties will be imposed if the US Department of Commerce (DOC) determines that such alleged dumping is occurring and if the US International Trade Commission (ITC) determines that there is “material injury” (or the threat thereof) because of the dumped or subsidized imports.

If the investigations are affirmative, importers of HPC pea protein from China will be liable for any potential AD and/or CVD duties imposed. These investigations may also impact US purchasers via increased prices or decreased supplies of certain pea proteins. Imports of HPC pea protein from China are also currently subject to Section 301 (Lists 3 and 4A) duties.   

Scope of Investigations

Per the petition, the scope of these investigations covers HPC pea protein in all physical forms, including all liquid (e.g., solution) and solid (e.g., powder) forms, regardless of packaging. The scope includes HPC pea protein that is blended, combined, or mixed with non-subject pea protein or with other products, including, but not limited to, protein powders, dry beverage blends, and protein-fortified beverages. For any such blended, combined, or mixed products, PURIS Proteins requests that only the HPC pea protein component be covered by the scope of these investigations.

However, PURIS Proteins also includes HPC pea protein that has been blended, combined, or mixed with other products within the proposed scope, regardless of whether the blending, combining, or mixing occurs in third countries. HPC pea protein that would otherwise be within the scope is also covered when commingled (i.e., blended, combined, or mixed) with HPC pea protein from sources not subject to this investigation. Only the subject component of the commingled product would be covered by the scope.

Excluded from the scope of PURIS Protein’s petition:

  • A blend, combination, or mixture if the total HPC pea protein content of the blend, combination, or mixture (regardless of the source or sources) comprises less than 5% = of the blend, combination, or mixture on a dry weight basis.

HPC pea protein is classified under the United States Harmonized Tariff Schedule subheadings 2106.10.0000, 3504.00.1000, 3504.00.5000. Such merchandise may also enter the US market under HTSUS category 2308.00.9890.

Estimated Key Dates of Interest to Exporters and US Importers

The following are estimated key dates for these investigations, once initiated by the DOC and the ITC:

First Deadlines:
ITC Preliminary Injury Phase

approx. July 26, 2023 – questionnaire responses will be due.
August 2, 2023 – ITC Preliminary Staff Conference
August 28, 2023 - ITC Preliminary injury determination
Commerce Initiation Date August 1, 2023

Commerce Preliminary AD Determinations

December 19, 2023 - AD preliminary determination

The preliminary results deadline can be extended.

Commerce Preliminary CVD Determinations

October 5, 2023 - CVD preliminary determination

The preliminary results deadline can be extended.

Earliest Suspension of Liquidation (theoretical) August 1, 2023 – Subject to both affirmative critical circumstances finding by ITC and DOC.
© 2023 ArentFox Schiff LLPNational Law Review, Volume XIII, Number 194
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About this Author

Nancy A. Noonan International Trade Lawyer Washington DC ArentFoxSchiff
PARTNER

Nancy handles proceedings under the international trade and customs laws of the United States and under the US’ immigration and nationality laws.

Regarding international trade and customs matters, Nancy has represented a wide variety of clients in antidumping, countervailing duty, Section 201, Section 232 and Section 301 proceedings before the US Department of Commerce, the US International Trade Commission, US Customs and Border Protection, and the Office of the US Trade Representative. She also counsels clients on trade dispute issues arising...

202-857-6479
Leah Scarpelli Associate ArentFox Schiff LLP
Associate

Leah advises U.S. and foreign corporations, associations, and governments on a variety of international trade and customs matters, including trade remedies and import compliance.

Leah specializes in trade policy issues, such as the Section 232 tariffs on steel and aluminum, the Section 301 tariffs on imports from China and the EU, and the negotiation of trade agreements. She also counsels clients on global trade strategies and export compliance.

Leah works with clients in diverse sectors, including the automotive,...

202-715-8403
International Trade Attorney Jessica DiPietro Washington DC
Associate

Jessica’s practice focuses on trade remedy actions, including antidumping and countervailing duty matters before the US Department of Commerce and the US International Trade Commission. She also advocates for clients in related litigation before the US Court of International Trade and the US Court of Appeals for the Federal Circuit.

Client Work

  • Represent clients in antidumping and countervailing duty proceedings before the US International Trade Commission, the US Department of Commerce in administrative...

202-350-3622
Yun Gao International Trade Attorney ArentFox Schiff
Attorney

Yun  Gao is an Attorney in ArentFox Schiff's International Trade practice and a member of the Forced Labor Task Force.

Yun’s practice is focused on trade remedies and customs laws.  Yun represents clients in a variety of international trade matters including anti-dumping duty, countervailing duty, Section 232 and Section 301 duties before the Department of Commerce, the U.S. International Trade Committee, and the U.S. Trade Representatives. 

Yun also advises companies on customs compliance matters, including tariff...

212-492-3337
Diana Dimitriuc Quaia  International Trade Attorney Washington DC ArentFoxSchiff
PARTNER

Diana has a broad-based international trade practice with a focus on trade litigation and international dispute settlement litigation.

Diana provides advice to corporations and foreign governments on trade law and policy, litigation, and administrative proceedings. She represents and advises clients in trade remedy cases in the United States, such as antidumping and countervailing duty proceedings, global safeguard actions under Section 201, national security measures under Section 232, as well as Section 337 proceedings. Diana is well versed in...

202-857-6291