On May 2, 2014 the US Department of Commerce (DOC) in its preliminary determinations has hit importers of monosodium glutamate (MSG) from Indonesia as well as China with anti-dumping duties after both countries have been found to participate in dumping MSG products in the US at a price below the cost of production. The action was brought by the US as a response from the petition initiated by the Ajinomoto North America Inc., a multinational producer of MSG products.
The DOC declared that it would collect a preliminary 52.27% anti-dumping duty on MSG products from China.
The US decision to slap hefty duty on MSG products from China has impacted trade that affects 26,600 tonnes of MSG from China last year worth around USD 33.5 million.
Moreover, the DOC has also imposed a preliminary anti-dumping duty on MSG products from Indonesian exporters, with a 5.61% anti-dumping duty.
It is reported that Indonesia has exported 4,500 tonnes of MSG products to the US last year, which is worth around USD 6 million.
It should be noted that the decision made by the DOC is only temporary or known as a preliminary determination. The final ruling by the DOC is expected to be issued by September 22, 2014.
If the DOC makes affirmative final determinations and the US International Trade Commission (ITC) also makes affirmative final determinations that imports from Indonesia and/or China have materially injure or threaten to materially injure domestic industry, then the DOC will impose anti-dumping measures. If the determinations found by the DOC and the ITC are both negative, then no anti-dumping measures will be issued. The final injury determinations by the ITC is expected to be released by November 2014.