91 FR 46399 · published 2026-07-23
· Commerce Department, International Trade Administration
Mirrored from the Federal Register (retrieved 2026-08-08) —
the official copy is at federalregister.gov
(their site may ask for human verification).
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of L-lysine (lysine) from the People's Republic of China (China). The period of investigation (POI) is January 1, 2024, through December 31, 2024.
[Federal Register Volume 91, Number 140 (Thursday, July 23, 2026)]
[Notices]
[Pages 46399-46401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14952]
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-216]
L-Lysine From the People's Republic of China: Final Affirmative
Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of L-lysine (lysine) from the People's Republic of China (China). The
period of investigation (POI) is January 1, 2024, through December 31,
2024.
DATES: Applicable July 23, 2026.
FOR FURTHER INFORMATION CONTACT: Grant Fuller, AD/CVD Operations,
Office IX, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-6228.
SUPPLEMENTARY INFORMATION:
Background
On January 22, 2026, Commerce published the Preliminary
Determination of this countervailing duty (CVD) investigation of lysine
from China, in accordance with section 705(a)(1) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.210(b)(3), and aligned this
CVD investigation with the final determination in the companion less-
than-fair-value (LTFV) investigation.\1\
\1\ See L-Lysine from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination, 91 FR 2745 (January 22, 2026) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
For a complete discussion of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\2\
The Issues and Decision Memorandum is a public document and is made
available to the public via Enforcement and Compliance's Antidumping
and Countervailing Duty Centralized Electronic Service System, which is
available to registered users at https://access.trade.gov. In addition,
a complete version of the Issues and Decision Memorandum can be
accessed directly at https://access.trade.gov/frnotices.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of L-lysine from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
Scope of the Investigation
The merchandise covered by the scope of this investigation is
lysine from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
No interested party commented on the scope of the investigation as
it appeared in the Preliminary Determination. Therefore, we made no
changes to the scope of the investigation.
Verification
As provided in section 782(i) of the Act, in March 2025, Commerce
verified the information reported by Inner Mongolia Eppen Biotech Co.,
Ltd (Inner
Mongolia Eppen) for use in the final determination. We used standard
verification procedures, including an examination of relevant
accounting records and original source documents provided at
verification.\3\
\3\ See Memorandum, ``Verification of the Questionnaire
Responses of Inner Mongolia Eppen Biotech Co., Ltd.,'' dated June 4,
2026.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs that were submitted by interested parties
in this investigation are discussed in the Issues and Decision
Memorandum. For a list of the issues raised by interested parties and
addressed in the Issues and Decision Memorandum, see Appendix II to
this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific.\4\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
\4\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of adverse facts available (AFA), see the
Preliminary Determination and the Issues and Decision Memorandum at the
section entitled ``Uses of Facts Available and Application of Adverse
Inferences.'' \5\
\5\ See also Preliminary Determination PDM at 4-25.
All-Others Rate
Section 705(c)(5)(A) of the Act provides that Commerce shall
determine an estimated all-others rate for companies not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated subsidy rates established for those companies
individually examined, excluding any zero and de minimis rates and any
rates based entirely under section 776 of the Act.
In this investigation, Commerce assigned rates based entirely on
AFA to Helionjiang Wanli Runda Biotechnology Co., Ltd. and Shouguang
Golden-land Industry & Trading Co Ltd. Therefore, the only rate that is
not zero, de minimis, or based entirely on the facts otherwise
available is the rate calculated for Inner Mongolia Eppen. Accordingly,
the rate calculated for Inner Mongolia Eppen is also assigned as the
rate for all other producers and exporters, pursuant to section
705(c)(5)(A) of the Act.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2024, through December
31, 2024:
\6\ As discussed in the Preliminary Determination, Commerce has
found the following companies to be cross-owned with Inner Mongolia
Eppen: Heilongjiang Eppen Trading Co., Ltd.; Heilongjiang Eppen
Biotech Co., Ltd.; Heilongjiang Eppen Energy Co.; Ningxia Eppen
Biotech Co. Ltd.; Star Lake Bioscience Co., Ltd Zhaoqing Guangdong;
and Guangdong Guangxin Holdings Group Ltd.
Subsidy rate (percent
Company ad valorem)
Inner Mongolia Eppen Biotech Co. Ltd.\6\....... 48.21
Helionjiang Wanli Runda Biotechnology Co., Ltd. * 82.11
Shouguang Golden-land Industry & Trading Co Ltd * 82.11
All Others..................................... 48.21
* Rate is based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations performed to
interested parties in this final determination within five days of its
public announcement or, if there is no public announcement, within five
days of the date of the publication of this notice in the Federal
Register, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of subject merchandise from China that were
entered, or withdrawn from warehouse, for consumption, on or after
January 22, 2026, the date of the publication of the Preliminary
Determination in the Federal Register.\7\ In accordance with section
703(d) of the Act, we instructed CBP to discontinue the suspension of
liquidation of all entries of subject merchandise entered or withdrawn
from warehouse, on or after May 22, 2026, but to continue the
suspension of liquidation of all entries of subject merchandise on or
before May 21, 2026.
\7\ See Preliminary Determination, 91 FR at 2745.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
require a cash deposit of estimated countervailing duties for entries
of subject merchandise in the amounts indicated above. Pursuant to
section 705(c)(2) of the Act, if the ITC determines that material
injury, or threat of material injury, does not exist, this proceeding
will be terminated, and all estimated duties deposited or securities
posted as a result of the suspension of liquidation will be refunded or
cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of lysine from
China. As Commerce's final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will determine, within 45 days,
whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of import of
lysine from China. In addition, we are making available to the ITC all
non-privileged and non-proprietary information in our files,
provided the ITC confirms that it will not disclose such information,
either publicly or under administrative protective order (APO), without
the written consent of the Assistant Secretary for Enforcement and
Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Administrative Protective Order
This notice will serve as the final reminder to parties subject to
an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return or destruction
of APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: July 20, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers animal feed grade L-
lysine (lysine). Lysine is an essential amino acid added to animal
feed that is used in the biosynthesis of proteins. The scope covers
lysine regardless of form, including lysine monohydrochloride, also
referred to as lysine HCL, lysine sulfate, and liquid lysine. The
scope includes lysine that has been coated or encapsulated for use
with ruminants to ensure bioavailability.
Lysine HCL in the dry form has the molecular formula
C6H14N2O2HCl. The Chemical Abstracts Service (CAS) registry number
for lysine HCL is 657-27-2. Lysine HCL contains a minimum of 78
percent lysine by weight, as well as additional amino acids,
carbohydrates, mineral salts, and organic acids. Lysine sulfate is
the sulfate salt of lysine, and in the dry form it has the molecular
formula C6H16N2O6S. The CAS registry number for lysine sulfate is
60343-69-3. Lysine sulfate typically contains approximately 40-70
percent lysine by weight, as well as additional amino acids,
carbohydrates, mineral salts, and organic acids. Liquid lysine is a
concentrated form of lysine in an aqueous solution with the
molecular formula C6H14N2O2. The CAS registry number for liquid
lysine is 56-87-1. Liquid lysine normally contains at least 50
percent lysine by weight, as well as additional amino acids,
carbohydrates, mineral salts, and organic acids.
The scope includes animal feed grade lysine that is combined
with other products, including for example, by mixing, blending,
compounding, or granulating (e.g., base mixes, premixes, and
concentrates). For such combined products, only the lysine component
is covered by the scope of this investigation.
Subject merchandise also includes lysine that has been processed
in a third country, including by commingling, diluting, adding or
removing additives, refining, converting from liquid to dry or dry
to liquid form, coating or encapsulating, or performing any
processing that would not otherwise remove the merchandise from the
scope of the investigation if performed in the subject country.
The merchandise covered by this investigation is properly
classified under Harmonized Tariff Schedule of the United States
(HTSUS) subheading 2922.41.0090. Lysine may also be classified under
HTSUS subheadings 2922.41.0010, 2922.49.4950, 2309.90.7000, and
2309.90.9500. Although the HTSUS subheadings and the CAS registry
numbers are provided for convenience and customs purposes, the
written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Discussion of the Issues
Comment 1: Whether Inner Mongolia Eppen's Input Suppliers Acted
as Government Authorities
Comment 2: Whether Commerce's Determinations Regarding Other
Subsidies Are in Accordance with Law
Comment 3: Whether the Provision of Electricity for Less Than
Adequate Remuneration (LTAR) is Specific
Comment 4: Whether to Revise the Adverse Facts Available (AFA)
Rate Assigned to Inner Mongolia Eppen's Cross-Owned Affiliate,
Guangdong Guangxin Holdings Group Ltd. (Guangxin Group)
Comment 5: Whether to Apply AFA to the Benefits Inner Mongolia
Eppen Received from the Provision of Inputs for LTAR Programs
Because of Inland Freight Reporting Issues
Comment 6: Whether the Selection of the Coal Benchmark is
Appropriate
Comment 7: Whether Commerce Should Revise the Import Tariff Rate
for Steam Coal
VII. Recommendation
[FR Doc. 2026-14952 Filed 7-22-26; 8:45 am]
BILLING CODE 3510-DS-P
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