China's Lysine Subsidies Under Scrutiny: Duties on Horizon?
Published Date: 6/24/2025
Notice
Summary
The U.S. government is starting an investigation into whether China is unfairly helping its companies sell L-lysine in the U.S. This affects American companies like Archer Daniels Midland and could lead to extra taxes on Chinese L-lysine imports starting June 17, 2025. The goal? To keep trade fair and protect U.S. businesses from unfair competition.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 2 costs, 2 mixed.
Commerce Opens CVD Probe on L‑Lysine
The U.S. Department of Commerce has initiated a countervailing duty (CVD) investigation into imports of L‑lysine from the People's Republic of China to determine whether Chinese producers receive countervailable subsidies. The notice is applicable June 17, 2025, and the petition was filed on behalf of domestic producers including Archer Daniels Midland Company, CJ Bio America, Inc., and Evonik Corporation.
Company‑Specific Rates and Respondent Selection
Commerce intends to calculate company‑specific subsidy rates and, if the number of companies is large, will select mandatory respondents using U.S. Customs and Border Protection (CBP) entry data. CBP entry data on imports of lysine from China were released under administrative protective order on June 17, 2025, and interested parties wishing to comment on that data or respondent selection had three business days from publication of the initiation notice to do so.
Products Defined in Investigation Scope
The investigation covers animal feed grade L‑lysine in all forms, including lysine monohydrochloride (lysine HCl), lysine sulfate, and liquid lysine, and coated or encapsulated forms. The notice lists CAS numbers (lysine HCl CAS 657-27-2; lysine sulfate CAS 60343-69-3; liquid lysine CAS 56-87-1) and HTSUS subheading 2922.41.0090 (and additional subheadings) as convenience references.
Investigation Timeframe and Key Deadlines
The period of investigation (POI) for the CVD probe is January 1, 2024 through December 31, 2024. Commerce will make its preliminary CVD determination no later than 65 days after initiation (unless postponed), and the U.S. International Trade Commission (ITC) will make a preliminary injury determination within 45 days after the Petition was filed.
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