Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 9/27/10

China’s Ministry of Commerce announced Sunday it will levy anti-dumping duties of 50.3 percent to 105.4 percent on imports of U.S. chicken products, effective for the next five years.

The action confirms anti-dumping duties imposed in February on a temporary basis and raises the bottom of the range to 50.3 percent from 43.1 percent set in February. Overall, however, this is not a new burden on trade, according to the National Chicken Council.

The duties confirmed Sunday are in addition to countervailing duties ranging from 4 percent to 30 percent confirmed earlier this month to offset what China sees as U.S. poultry industry subsidies, including crop insurance and the economic stimulus package, NCC communications director Richard Lobb told Meatingplace. Both sets of duties have been in effect since February.

Sunday’s announcement imposes specific anti-dumping duty rates for three companies whose exports to China were reviewed during in the investigation: Pilgrim’s Pride, 53.4 percent; Keystone Foods, 50.3 percent; and Tyson Foods, 50.3 percent. The final duty rate for the 32 other U.S. export companies that registered in the investigation will be 51.8 percent. The “all-others” rate – for any exporter that did not register in the investigation – will be 105.4 percent, according to the USA Poultry & Egg Export Council (USAPEEC).

The U.S. chicken industry has dumped broiler products into the Chinese market and caused substantial damage to the domestic industry, the ministry said in an online statement, citing the results of an investigation initiated a year ago.

According to the ministry statement, in 2008, U.S. exports of chicken products to China rose 12.34 percent year on year to 584,300 metric tons. About 305,600 metric tons of U.S. chicken products landed in China in the first half of 2009, up 6.54 percent year on year and representing 89.24 percent of China's total chicken product imports.

Timing is everything
A year ago, China started its investigation into U.S. chicken less than two days after President Obama imposed steep tariffs on Chinese tires. The tariff confirmation on Sunday came two days after a U.S. congressional committee approved a bill targeted at China that would allow countervailing duties to offset undervalued currencies.     

“U.S. poultry industry does not engage in dumping and does not receive subsidies,” said the NCC statement. “It is unfortunate that U.S. poultry exports have fallen victim to disputes over international trade policy.”

For the period January to July 2010, the poultry trade with China was running at about 13 percent of its volume for the same period in 2009, according to NCC.

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