New antidumping and countervailing duty petition: white grape juice concentrate from Argentina – consequences for industry and downstream consumers
On March 31, 2022, Delano Growers Grape Products, LLC filed a petition with the US Department of Commerce (DOC) and the US International Trade Commission (ITC) alleging that white grape juice concentrate from Argentina is being sold in the US at less than fair value. The petition also alleges that the government of Argentina is providing unfair subsidies to their producers and exporters of white grape juice concentrate to the US.
The petitioner seeks the imposition of antidumping (AD) duties on imports of white grape juice concentrate from Argentina, alleging a dumping margin of 124.45 percent. The petitioner also seeks the imposition of countervailing (CVD) duties on such imports from the country, alleging an unspecified total level of subsidies of at least 1 percent.
Under US law, a domestic industry can petition the government to initiate an AD investigation to determine whether an imported product is sold in the US at less than fair value (ie, dumped). A domestic industry may also seek a CVD investigation into alleged subsidization of foreign producers or exporters by a foreign government. AD/CVD duties may be imposed if the DOC determines that imported goods are dumped and/or unfairly subsidized and if the ITC determines that the domestic industry is materially injured or threatened with such injury by reason of the subject imports.
Products covered by the petition
The merchandise covered by the petition is white grape juice concentrate with a Brix level of 65 to 68, whether in frozen or non-frozen form. White grape juice concentrate is concentrated grape juice produced from grapes of the Vitis vinifera L. species with white flesh, including fresh market table grapes and raisin grapes (eg, Thompson Seedless) as well as several varietals of wine grapes (eg, Chardonnay, Chenin Blanc, Sauvignon Blanc, Colombard). The scope of this investigation covers white grape juice concentrate regardless of whether it has been certified as kosher, organic or organic kosher. The product subject to this investigation consists of 100-percent grape juice with no other types of juice intermixed and no additional sugars or additives included.
The petition does not cover white grape juice concentrate produced from grapes of the Vitis labrusca species (eg, Niagara).
The products covered by the petition are currently classified in the Harmonized Tariff Schedule of the United States under subheadings 2009.69.0040 and 2009.69.0060.
The total value of imports of white grape juice concentrate from Argentina was $54.0 million in 2021.
Foreign producers and US importers of white grape juice concentrate
The petition identifies 8 exporters and 16 US importers of white grape juice concentrate from Argentina. See the lists of exporters and US importers from the petition.
Estimated schedule of investigations
AD and CVD proceedings are conducted pursuant to a strict statutory time schedule. Below is an estimated schedule for the AD and CVD investigations on white grape juice concentrate from Argentina.
3/31/2022 – Petition filed
5/16/2022 – ITC preliminary injury determination
6/24/2022 – DOC preliminary CVD determinations, if not postponed
8/29/2022 – DOC preliminary CVD determinations, if fully postponed
9/7/2022 – DOC preliminary AD determinations, if not postponed
10/27/2022 – DOC preliminary AD determinations, if fully postponed
3/20/2023 – DOC final AD and CVD determinations, if both preliminary and final determinations are fully postponed
5/2/2023 – ITC final injury determination, if DOC determinations are fully postponed
5/9/2023 – AD and CVD orders published
Consequences for exporters and US companies
US AD and CVD investigations can result in the imposition of substantial duties in addition to already-applicable duties and tariffs. If the ITC and DOC make affirmative preliminary determinations, US importers will be required to post cash deposits corresponding to the ad valorem AD and/or CVD duty rates determined for the subject merchandise on or after the date on which the DOC’s preliminary determination is published in the Federal Register. In certain circumstances, such duty deposit requirements may retroactively go into effect 90 days prior to the date of publication. The AD and CVD duties will remain in effect if the DOC and ITC make affirmative final determinations.
The DOC calculates specific AD and CVD margins for certain individual foreign producers and exporters selected for examination. Such rates are often much lower than those alleged in the petition. However, foreign producers and exporters that do not participate in the investigations may be subject to substantially higher rates. Duties imposed at these higher rates may force exporters to stop shipping to the US and importers to cease importation of subject merchandise. Thus, interested parties – including US and foreign producers, exporters, importers and downstream US purchasers of the subject merchandise – are encouraged to have a strategy for addressing AD and CVD investigations, including possible participation.
Under the statutory time schedule for AD and CVD investigations, the first decision (ie, the preliminary ITC determination of whether there is a reasonable indication that the US industry is materially injured, or threatened with material injury, by reason of the subject imports) must be made within 45 days after the filing of the petition – in this case, by May 16, 2022. An ITC hearing (ie, a public conference) is held around 21 to 23 days after the filing date. As a result, agency staff work, including the issuance of questionnaires to interested parties, begins almost immediately. Thus, quick action is encouraged to understand the specific implications of these developments as well as to prepare and implement a pertinent strategy.
To learn more, please contact any of the authors.
