Nearly 70 U.S. companies register in dumping case

By Holly Jessen | January 20, 2011

The paperwork to register U.S. companies as interested parties in China’s anti-dumping investigation was completed and submitted by deadline, according to Rebecca Bratter, U.S. Grains Council director of trade development.

A total of 68 companies registered as interested parties on the injury side of the case, a process facilitated by the USGC. The companies run the gamut of those involved in the domestic distillers grain business. “Some are producers, some are exporters/traders and some are both,” she told EPM. Another smaller group of companies registered as interested parties on the dumping side. USGC isn’t facilitating that process and isn’t able to provide additional information on those companies, Bratter said.

China announced Dec. 28 that it was launching an investigation into whether U.S. companies were dumping distillers dried grains with and without solubles into the Chinese market. U.S. companies were given until Jan. 17 in Beijing, which was Jan. 16 in the U.S., to register as interested parties.

Besides being a sign of respect and cooperation, registering as an interested party is a good idea financially. Companies that are registered will qualify for lower, negotiated provisional tariffs, which could be imposed by China at any time before the end of the investigation. “It could be as soon as this summer,” she said.

To rule against the U.S., China must show evidence that DDGS have been dumped on the Chinese market at prices lower than what other buyers pay, injuring Chinese interests, according to USGC. The decision is expected by the end of 2011, with the possibility of a six month extension. In the meantime, the case is likely to have a big impact on DDGS exports to China. “Right now the buyers are sitting on the sidelines to see what is going to happen,” said Mike Callahan, director of international operations for the USGC.

The next step is for registered parties to fill out a questionnaire for the Chinese government, Bratter said. The deadline to submit the paperwork is Jan. 26.

U.S. shipments of DGGS went from zero in 2006 to 2.3 mmt from January to November 2010. The increase is due to China’s need for high-protein feed ingredients to meet demand for meat products, according to the USGC. The country’s economic growth has meant new trade patterns for products like DDGS, said USGC President and CEO Thomas Dorr. “It should not be surprising that there would be an adjustment period in response to China’s unprecedented demand,” he said.