Saccharin from China - USITC

In order to protect the sugar industry, the Chinese government has restricted saccharin productionsince the late 1990s, and since 2002, China’s saccharin capacity ***. 12 Under such strict supervision,China’s saccharin production was ***. 13 ***. 14***. 15***. 16According to the China Sugar Association, in 2006, the Chinese government restricted saccharinsales to its domestic market to about 7.7 million pounds, the same target set in previous years. Saccharinindustry sources also say that the Chinese government’s action is an effort to protect the environmentfrom damage caused by phthalic acid used in saccharin production and responsible for significantpollution of water in China. 17 Trade Restrictions in Third-Country MarketsIn its questionnaires, the Commission asked whether the firms’ exports of saccharin are subject totariff or non-tariff barriers to trade in any countries other than the United States. India imposed its ownprovisional antidumping duty on imports of saccharin from China on June 6, 2006, which became finalMarch 19, 2007. Specifically, imports of Chinese saccharin into India currently are subject to dumpingmargins ranging from $717.21 per metric ton to $2,151.33 per metric ton as follows: 18ProducerExporterAntidumping duty amount permetric ton (dollars)Shanghai Fortune Majestic International Trading Co., Ltd. $717.21Shanghai Fortune All others 807.77Kaifeng Any 1,093.28Tianjin Changjie Any 1,127.67All other producers Any 2,151.3312The Survey of Saccharin in China, p. 24.13Ibid., p. 22.14Ibid., pp. 22-23 and 25. The Suzhou plant in China was closed for environmental and safety issues; however,accidents that may have resulted in some fatalities also occurred in this time frame. In January 2007, due to amalfunction of its ventilation fan, Suzhou had a poisonous sulfur dioxide gas leak which penetrated its surroundingfacilities and led to the poisoning of around 100 workers and the evacuation of more than 1,000 workers. On June18, 2007, a broken reservoir pipe at Suzhou resulted in a sodium hypochlorite leak. PMC’s posthearing brief, exh.1,p. 37, and exh. 10.15Ibid., p. 23.16Ibid., p. 25.17“China Tightens Control on Saccharin Production,” Dominique Patton, Foodnavigator.com, July 18, 2006,retrieved February 18, 2009.18Importers’ questionnaire responses, section I-12, and PMC’s Response to the Notice of Institution, exh. 5.IV-7