China puts countervailing duties on U.S. chicken

by Meat&Poultry Staff
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BEIJING – Last week, China’s Ministry of Commerce issued its final determination in its countervailing duty investigation of the U.S. chicken industry, according to the National Chicken Council. M.O.F.C.O.M. issued its preliminary determination on the CVD case in February and imposed import duties from 3.8% to 31.4 per ad valorem.

For the next five years, China determined the final duties will range from 4% to 30.3%. M.O.F.C.O.M. explained its C.V.D. determination was based on its estimation of the level of “illegal subsidies” the U.S. chicken industry allegedly receives from a number of federal and state agricultural programs, such as U.S.D.A.’s Direct Payment Program, the Crop Insurance Program, Job-Creation Stimulus Program, and the Arkansas Investment Program.

The C.V.D. duties are in addition to the regular import duties. Following are the final C.V.D. rates: Tyson Foods, 12.5%; Pilgrim’s Pride, 5.1%; Keystone Foods, 4%; other registered companies, 7.4%; and all others, 30.3%.

M.O.F.C.O.M.’s final determination for its antidumping (AD) investigation is still pending also against the U.S. chicken industry. M.O.F.C.O.M. could announce it’s A.D. determination at any time, although it is expected before the end of this month.

M.O.F.C.O.M. initiated it’s A.D. and C.V.D. investigations in September 2009, following the U.S. government announcement of antidumping tariffs on Chinese tires. Also, China at the time expressed on-going frustration with the U.S. congressional prohibition that prevented U.S.D.A. from spending any of its budget on determining if the Chinese poultry inspection system is equivalent to U.S.D.A.’s program.
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