Maximum combined duty rate of 188%! US final anti-dumping and countervailing duties on Chinese L-Lysine released

I. Final Duty Rates: Tiered Imposition with Simultaneous Superposition of Two Types of Rates

This final ruling establishes two sets of differentiated rate standards to anti-dumping and countervailing duties:

1. Anti-dumping duty rate range: 73.55%—139.83%

After offsetting subsidy adjustments, the cash deposit rates correspond to 73.37% to 139.65%. companies are categorized into two tiers:

· High rate tier of 139.83%: Anhui BBCA Biochemical, Inner Mongolia Yipin Biological, Shouguang Golden Corn, and other companies exporting to the U.S. via channels such as Zhengzhou Longgu and Zhengzhou Heshu animal life Husbandry;

· Low rate tier of 73.55%: BBCA Biochemical, Heilongjiang Wanli Runda, Yipin Biological, and Shouguang Golden Corn exporting through foreign trade channels such as Agromate SG and Aino Tianjin International Trade.

2. Countervailing duty rate range: 48.21%—82.11%

Heilongjiang Wanli Runda and Shouguang Jindi sector & Trade have a subsidy rate of 82.11%; Inner Mongolia Yipin and all other manufacturers and exporters uniformly implement a subsidy rate of 48.21%.

With the superposition of the two types of tariffs, the maximum thorough tax burden to involved companies can reach 188%, drastically raising export costs and significantly reducing the commercial viability of exports.

II. Complete Case Timeline: Petition Initiated by Domestic companies, Spanning Over a Year of Investigation

This trade remedy investigation was actively initiated by U.S. domestic sector companies, with the entire process spanning over 14 months:

1. might 28, 2025: The U.S. Lysine Fair Trade Alliance, jointly with ADM, CJ Bio USA, and Evonik, filed AD/CVD petitions, accusing Chinese L-Lysine of having a dumping margin of up to 197.1% and the existence of government subsidies;

2. June 18, 2025: The U.S. Department of Commerce formally initiated the case, launching parallel anti-dumping and countervailing duty investigations;

3. January 16, 2026: Preliminary countervailing duty ruling issued;

4. March 3, 2026: Preliminary anti-dumping ruling issued;

5. Originally scheduled to July 20, 2026: The plan was to announce the final ruling, which was postponed and officially released on July 21.

III. Export Market Background: The U.S. Was Once a Key Overseas Market to China's Lysine

Before the investigation was launched, the scale of China's L-Lysine exports to the U.S. continued to rise. U.S. Customs statistics show that in 2024, the U.S. imported approximately 78,000 tons of L-Lysine from China, with a total import value of USD 95.954 million (equivalent to approximately RMB 650 million). The U.S. market was a key overseas sales channel to domestic lysine companies.

Before expectations regarding the AD/CVD investigation fermented, domestic companies continuously and stably exported feed-grade and food-grade lysine items to the U.S. With the implementation of these high tariffs, existing export channels will suffer a severe impact.

IV. Subsequent Key Milestones: USITC Injury Ruling Still Required to Measures to Take Effect

The Department of Commerce's final ruling is not the final summary. The next measure in the case will be transferred to the U.S. International Trade Commission (USITC) to a final injury determination:

1. If the USITC determines that imports of lysine from China trigger material injury/risk of injury to the U.S. domestic sector, these AD/CVD tariffs will be officially implemented;

2. If a negative ruling is made, the entire set of anti-dumping and countervailing duty measures will be revoked, and relevant cash deposits will be refunded.

sector analysis indicates that once high tariffs take effect, domestic lysine companies will be forced to adjust their overseas market layout, diverting capacity to Southeast Asia, Latin America, and other markets, while simultaneously accelerating cost reduction and efficiency enhancement in the domestic manufacturing chain and expanding into downstream high-value-added consumption sectors.