New antidumping duty petition: certain preserved mushrooms from France, the Netherlands, Poland and Spain – consequences for industry and downstream consumers

On March 31, 2022, Giorgio Foods, Inc. filed a petition with the US Department of Commerce (DOC) and the US International Trade Commission (ITC) alleging that certain preserved mushrooms from France, the Netherlands, Poland and Spain are being sold in the US at less than fair value.

The petitioner seeks the imposition of antidumping (AD) duties on imports of the preserved mushrooms from each of the four countries, alleging dumping margins ranging from 116.56 percent to 344.77 percent for France; 126.05 percent to 152.36 percent for the Netherlands; 21.82 percent to 31.90 percent for Poland; and 6.38 percent to 139.83 percent for Spain.

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). AD duties may be imposed if the DOC determines that imported goods are dumped 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 certain preserved mushrooms, whether imported whole, sliced, diced or as stems and pieces. The preserved mushrooms covered under this investigation are the genus Agaricus. "Preserved mushrooms" refer to mushrooms that have been prepared or preserved by cleaning, blanching and sometimes slicing or cutting.  These mushrooms are then packed and heat-sterilized in containers that each hold a net drained weight of no more than 12 ounces (340.2 grams), including, but not limited to, cans or glass jars, in a suitable liquid medium, such as water, brine, butter or butter sauce. Preserved mushrooms may be imported whole, sliced, diced or as stems and pieces.

The merchandise covered by the petition is currently classified in the Harmonized Tariff Schedule of the United States under subheadings 2003.10.0143, 2003.10.0147, and 2003.10.0153. 

The total value of imports of certain preserved mushrooms from France, the Netherlands, Poland and Spain was $57.1 million in 2021.

Foreign producers and US importers of certain preserved mushrooms

The petition identifies 22 exporters and 60 US importers of certain preserved mushrooms from France, the Netherlands, Poland and Spain.  See the lists of exporters and US importers from the petition.

Estimated schedule of investigations

AD proceedings are conducted pursuant to a strict statutory time schedule. Below is an estimated schedule for the AD investigations on certain preserved mushrooms from France, the Netherlands, Poland and Spain.

3/31/2022 – Petition filed

5/16/2022 – ITC preliminary injury determination

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 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 orders published

Consequences for exporters and US companies

US AD 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 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 duties will remain in effect if the DOC and ITC make affirmative final determinations.

The DOC calculates specific AD 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 investigations, including possible participation.

Under the statutory time schedule for AD investigations, the first decision (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.