Commerce Finds China Guilty of Dumping Pea Protein; Fines Could Be Retroactive

March 27, 2024
The Dept. of Commerce and its International Trade Commission have set preliminary anti-dumping fines and countervailing duties ranging from 127-612% on pea protein.

The Dept. of Commerce and its International Trade Commission (ITC) have found China guilty of dumping and/or subsidizing pea protein sales in the U.S. at unfair prices. That means Chinese pea proteins could be hit with anti-dumping fines and countervailing duties of 127-612%.

In addition to immediately raising the prices of those ingredients, some of the fines could be retroactive to last September -- meaning American processors who previously bought Chinese protein could be hit with charges, either directly from Commerce or from their importer or supplier.

“Commerce has instructed U.S. Customs and Border Protection (CBP) to collect retroactive CVD [countervailing duties] deposits – in the range of 15-343% ad valorem, depending on the importing company – on certain protein pea previously imported from China entered on or after September 19, 2023,” according to the Commerce website. “Moving forward, CBP will collect CVD deposits (at these same rates) on protein pea isolate imports from China.”

Responding to a 2023 claim of unfair competition from Minneapolis-based pea protein supplier Puris (www.puris.com), Commerce back in December determined Chinese pea protein producers received government subsidies ranging from 15% to 342%. That enabled Chinese producers to sell their products in the U.S. market at artificially low prices, causing material injury to the U.S. industry.

ITC’s preliminary ruling in February suggested duties on dumped imports from 112% to 270%. A final ruling from the ITC is expected in June, but a final date has not been set.

“The DOC’s findings validate our claims that Chinese pea protein imports are being unfairly subsidized,” said Tyler Lorenzen, CEO of Puris. “This preliminary determination is a critical milestone for American jobs, domestic farmers, and upholding the integrity of our markets. Puris will continue to participate vigorously in the DOC proceedings to ensure that the final duty rates reflect the full amount of unfair trade that is occurring.”

In a parallel story, Puris noted on its website there has been a surge in Russian pea imports to China. That has a two-pronged effect: Russia has edged out some Western nations, especially Canada, as a supplier of peas to China, and some of the pea protein Western firms are buying from China may actually be made from Russia peas, thereby supporting that country’s economy during a time of economic sanctions.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.

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