Notice2026-01193
L-Lysine From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
Primary source
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Published
January 22, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily 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 is January 1, 2024, through December 31, 2024. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 91 Issue 14 (Thursday, January 22, 2026)</title>
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[Federal Register Volume 91, Number 14 (Thursday, January 22, 2026)]
[Notices]
[Pages 2745-2747]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01193]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-216]
L-Lysine From the People's Republic of China: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
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 is January 1, 2024,
through December 31, 2024. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable January 22, 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
This preliminary determination is issued in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On June 17,
2025, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation.\1\ On August 1, 2025, Commerce
postponed the deadline for this preliminary determination until October
27, 2025.\2\ Due to the lapse in appropriations and Federal Government
shutdown, on November 14, 2025, Commerce tolled all deadlines in
administrative proceedings by 47 days.\3\ Additionally, due to a
backlog of documents that were electronically filed via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS) during the Federal Government shutdown, on
November 24, 2025, Commerce tolled all deadlines in administrative
proceedings by an additional 21 days.\4\ Accordingly, the deadline for
this preliminary determination is now January 2, 2026.
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\1\ See L-Lysine from the People's Republic of China: Initiation
of Countervailing Duty Investigation, 90 FR 26799 (June 24, 2025)
(Initiation Notice); see also Checklist, ``Countervailing Duty
Investigation Initiation Checklist,'' dated June 17, 2025
(Initiation Checklist).
\2\ See L-Lysine from the People's Republic of China:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 90 FR 36136 (August 1, 2025).
\3\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\4\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\5\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via ACCESS. ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of the Preliminary
Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
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 (Preliminary
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is lysine from China. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\6\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\7\ No interested party
commented on the scope of the investigation as it appeared in the
Initiation Notice.\8\
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\6\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\7\ See Initiation Notice, 90 FR at 26799.
\8\ Id.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\9\ Commerce notes that, in making these findings, it relied,
in part, on facts available and, because it finds that one or more
respondents did not act to the best of their ability to respond to
Commerce's requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\10\
For further information, see the ``Use of Facts Otherwise Available and
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
\10\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the companion less-than-
fair-value (LTFV) investigation of lysine from China based on a request
made by the petitioner.\11\
[[Page 2746]]
Consequently, the final CVD determination will be issued on the same
date as the final LTFV determination, which is currently scheduled to
be issued no later than May 18, 2026, unless postponed.
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\11\ See Petitioner's Letter, ``Petitioners' Request to Align
Final Countervailing Duty Determination with the Companion
Antidumping Duty Final Determination,'' dated December 8, 2025. The
petitioner is the Lysine Fair Trade Coalition and its individual
members.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for all exporters and producers not individually examined.
This rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding any zero and de
minimis margins, and any margins determined entirely under section 776
of the Act.
Commerce calculated an individual estimated countervailable subsidy
rate for Inner Mongolia Eppen Biotech Co. Ltd. (Inner Mongolia Eppen),
the only individually examined exporter/producer in this investigation.
Because the only individually calculated dumping margin is not zero, de
minimis, or based entirely on facts otherwise available, the estimated
weighted-average dumping margin calculated for Inner Mongolia Eppen is
the margin assigned to all other producers and exporters, pursuant to
section 705(c)(5)(A)(i) of the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Inner Mongolia Eppen Biotech Co. Ltd.\12\............... 39.50
Helionjiang Wanli Runda Biotechnology Co., Ltd.......... * 80.37
Shouguang Golden-land Industry & Trading Co Ltd......... * 80.37
All Others.............................................. 39.50
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* Rate is based on facts available with adverse inferences.
Suspension of Liquidation
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\12\ As discussed in the Preliminary Decision Memorandum,
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.
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In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of publication of this
notice in the Federal Register, in accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments, excluding scope comments,
may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than seven days after the date on which the last
verification report is issued in this investigation. A timeline for the
submission of case briefs and written comments will be notified to
interested parties at a later date. Rebuttal briefs, limited to issues
raised in the case briefs, may be filed not later than five days after
the date for filing case briefs.\13\ Interested parties who submit case
briefs or rebuttal briefs in this proceeding must submit: (1) a table
of contents listing each issue; and (2) a table of authorities.\14\
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\13\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\14\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), we request that
interested parties provide at the beginning of their briefs a public,
executive summary for each issue raised in their briefs.\15\ Further,
we request that interested parties limit their executive summary of
each issue to no more than 450 words, not including citations. We
intend to use the executive summaries as the basis of the comment
summaries included in the issues and decision memorandum that will
accompany the final determination in this investigation. We request
that interested parties include footnotes for relevant citations in the
executive summary of each issue. Note that Commerce has amended certain
of its requirements pertaining to the service of documents in 19 CFR
351.303(f).\16\
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\15\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\16\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce via ACCESS
within 30 days after the date of publication of this notice. Requests
should contain: (1) the party's name, address, and telephone number;
(2) the number of participants and whether any participant is a foreign
national; and (3) a list of the issues to be discussed. If a request
for a hearing is made, Commerce intends to hold the hearing at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of lysine from
China are materially injuring, or threaten material injury to, the U.S.
industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections
[[Page 2747]]
703(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: January 2, 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
C<INF>6</INF>H<INF>14</INF>N<INF>2</INF>O<INF>2</INF>HCl. 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
C<INF>6</INF>H<INF>16</INF>N<INF>2</INF>O<INF>6</INF>S. 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
C<INF>6</INF>H<INF>14</INF>N<INF>2</INF>O2. 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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2026-01193 Filed 1-21-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on January 22, 2026.
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