L-Lysine From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
The U.S. Department of Commerce (Commerce) preliminarily determines that L-lysine (lysine) from People's Republic of China (China) is being, or is likely to be, sold in the Unit...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) preliminarily determines that L-lysine (lysine) from People's Republic of China (China) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is October 1, 2024, through March 31, 2025.
DATES:
Applicable July 23, 2026.
FOR FURTHER INFORMATION CONTACT:
Mira Warrier or Jerry Xiao, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-8031 or (202) 482-2273, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 6, 2026, Commerce published in the
Federal Register
its preliminary affirmative determination in the LTFV investigation of lysine from China, in which it also postponed the final determination until July 20, 2026.[1]
We invited interested parties to comment on the
Preliminary Determination.[2]
For a complete description of the events that occurred since the
Preliminary Results, see
the Issues and Decision Memorandum.[3]
The Issues and Decision Memorandum is a public document and on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS 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.
Scope of the Investigation
The product subject to 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,[4]
the
Initiation Notice
set aside a period of time for parties to raise issues regarding product coverage (
i.e.,
scope).[5]
No interested party commented on the scope of the investigation as it appeared in the
Initiation Notice.
Accordingly, Commerce is not modifying the scope language as it appeared in the
Initiation Notice. See
Appendix I.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended (the Act), in April 2026, Commerce verified the sales and factors of production information submitted by Eppen Asia Pte. Ltd. (Eppen Asia), Heilongjiang Eppen Biotech Co., Ltd. (Heilongjiang Eppen), Inner Mongolia Eppen Biotech Co., Ltd. (Inner Mongolia Eppen) and Ningxia Eppen Biotech Co., Ltd. (Ningxia Eppen) (collectively, the Eppen Group),[6]
Zhengzhou Longgu Trading Co., Ltd. (Zhengzhou Longgu),[7]
and Shouguang Golden Corn Biotechnological Co., Ltd. (Shouguang Golden Corn) for use in our
Final Determination.[8]
We used standard verification procedures, including an examination of relevant sales and accounting records, and original source documents provided by the Eppen Group, Zhengzhou Longgu, and Shouguang Golden Corn.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by interested parties in this investigation are addressed in the Issues and Decision Memorandum. A list of the issues addressed in the Issues and Decision Memorandum is attached to this notice at Appendix II.
Changes Since the Preliminary Determination
Based on our review and analysis of the information and comments received from interested parties for this final determination, Commerce has made changes to its preliminary separate rate determination with respect to the Eppen Group, applied total adverse facts available (AFA) to Longgu, and Zhengzhou Heshu Stockbreeding Development Co., Ltd. (Heshu), and made certain changes to the estimated weighted-average dumping margin for the China-wide entity, the estimated weighted-average dumping margin for non-examined companies that are eligible for a separate rate. For a discussion of these changes,
see
the Issues and Decision Memorandum.
China-Wide Entity and Use of AFA
Consistent with the
Preliminary Determination,[9]
Commerce continues to find that, pursuant to sections 776(a) and (b) of the Act, the use of facts otherwise available, with adverse inferences, is warranted in determining the estimated weighted-average dumping margin for the China-wide entity.[10]
For this final determination, there is no new information on the record that would cause us to reconsider our preliminary decision to apply AFA
( printed page 46407)
to the China-wide entity. For the AFA China-wide rate, we continue to use a simple average of the top 10 transaction margins calculated for the Eppen Group, the respondent with the only calculated dumping margin.[11]
Separate Rate
We have granted a separate rate to certain companies that we did not select for individual examination. Certain parties commented on Commerce's preliminary decision to grant a separate rate to the Eppen Group and Heshu; [12]
therefore, we are finding in this
Final Determination
the Eppen Group is not eligible for a separate rate.[13]
We have made no changes to Commerce's preliminary separate rate eligibility determinations for Heshu, or the other non-selected separate rate companies for this final determination.
Consistent with the
Preliminary Determination
and Policy Bulletin 05.1,[14]
Commerce calculated combination rates for the companies that are eligible for a separate rate. In calculating the rate for separate rate companies in a non-market economy LTFV investigation, Commerce normally looks to section 735(c)(5)(A) of the Act, which pertains to the calculation of the all-others rate in a market economy LTFV investigation, for guidance. Pursuant to section 735(c)(5)(A) of the Act, normally this rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for those companies individually examined, excluding zero and
de minimis
rates, and rates based entirely under section 776 of the Act. In investigations where no estimated weighted-average dumping margins other than zero,
de minimis,
or those determined entirely under section 776 of the Act have been established for individually examined entities, in accordance with section 735(c)(5)(B) of the Act, Commerce typically calculates a simple average of the dumping margins alleged in the petition and applies the results to all other companies not individually examined.[15]
However, for this final determination, we have calculated the estimated weighted-average dumping margin assigned to the non-examined separate rate companies using the only rate calculated that is not zero,
de minimis,
or based entirely on total AFA, which is the rate calculated using the Eppen Group's U.S. sales and factors of production databases.[16]
Combination Rates
Consistent with the
Preliminary Determination,
Commerce determined combination rates for the companies eligible for a separate rate.
Final Determination
Commerce determines that the following estimated weighted-average dumping margins exist for the period October 1, 2024, through March 31, 2025:
Producer
Exporter
Weighted-
average
dumping
margin
(percent)
Cash deposit
rate
(adjusted for
subsidy
offsets)
(percent) 17
Shandong Shouguang Juneng Golden Corn Development Co., Ltd
Pegasus Ltd
73.55
73.37
Qiqihar Longjiang Fufeng Biotechnologies Co., Ltd
Pegasus Ltd
73.55
73.37
Qiqihar Longjiang Fufeng Biotechnologies Co., Ltd
Qiqihar Longjiang Fufeng Biotechnologies Co., Ltd
73.55
73.37
Shouguang Golden Corn Biotechnological Co., Ltd
Shouguang Golden Corn Biotechnological Co., Ltd
73.55
73.37
China-wide Entity
* 139.83
139.65
* This rate is based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose the calculations performed in connection with this final determination to interested parties within five days after public announcement of the final determination or, if there is no public announcement, within five days of the date of publication of the notice of final determination in the
Federal Register
, in accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all appropriate entries of subject merchandise, as described in the appendix to this notice, which were entered, or withdrawn from warehouse, for consumption on or after March 6, 2026, the date of publication of the
Preliminary Determination
in the
Federal Register
.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), Commerce will instruct CBP to require the following cash deposits of estimated antidumping duties for all appropriate entries: (1) for the producer/exporter combinations listed in the table above, the applicable cash deposit rate will be equal to the estimated weighted-average dumping margin listed in the table for that combination, adjusted for subsidy offsets, if appropriate; (2) for all combinations of Chinese producers/exporters of the merchandise under consideration that have not established eligibility for separate rates, the cash deposit rate will be equal to the estimated weighted-average dumping margin established for the China-wide entity, adjusted for subsidy offsets if appropriate; and (3) for all third-country exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Chinese producer/exporter combination (or China-wide entity) that supplied that third-county exporter or, if the producer/exporter combination does not have its own rate, the cash deposit will be the cash deposit rate for the China-wide entity. These suspension of liquidation instructions and cash deposit requirements will remain in effect until further notice.
To determine the cash deposit rates in a LTFV investigation, Commerce normally adjusts the estimated weighted-average dumping margins by the amount of export subsidies countervailed in the companion countervailing duty (CVD) investigation. Accordingly, where Commerce has made an affirmative determination of countervailable export subsides, Commerce offsets the estimated weighted average dumping margins in the companion LTFV investigation by the appropriate export subsidy rate. Commerce has continued to adjust the cash deposit rate for export subsidies in the companion CVD investigation by the appropriate export subsidy rate as indicated in the above chart. However, the suspension of liquidation of provisional measures in the companion CVD case has been discontinued; [18]
therefore, we are not instructing CBP to collect cash deposits based upon the adjusted estimated weighted-average dumping margin for those export subsidies at this time. If the ITC makes a final affirmative determination of injury due to both dumping and subsidies, then the cash deposit rate will be revised effective on the date of the publication of the ITC's final affirmative determination in the
Federal Register
to be the company-specific estimated weighted-average dumping margin adjusted for export subsidies.
If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all cash deposits for estimated antidumping duties will be refunded and the suspension of liquidation will be lifted.
ITC Notification
In accordance with section 735(d) of the Act, Commerce will notify the ITC of its final affirmative determination of sales at LTFV. Because Commerce's final determination is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports, or sales (or the likelihood of sales) for importation, of lysine no later than 45 days after this final determination. If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated, all cash deposits will be refunded or canceled, and suspension of liquidation will be lifted. If the ITC determines that such injury does exist, Commerce will issue an AD order directing CBP to assess, upon further instructions by Commerce, antidumping 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 “Suspension of Liquidation” section above.
Administrative Protective Order (APO)
This notice serves as the final reminder to parties subject to an APO of their responsibility concerning the disposition 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
( printed page 46409)
hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation.
Notification to Interested Parties
This final determination is issued and published in accordance with sections 735(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 C6 H14 N2 O2 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 C6 H16 N2 O6 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 C6 H14 N2 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 Issues and Decision Memorandum
I. Summary
II. Background
III. Changes since the
Preliminary Determination
IV. Application of Facts Available and Use of Adverse Inference
A. Legal Framework
B. Application of Facts Available with an Adverse Inference
C. Selection and Corroboration of the AFA Rate
V. Discussion of the Issues
Comment 1: Whether Commerce Should Apply Total AFA to the Eppen Group
Comment 2: Whether to Continue Granting the Eppen Group a Separate Rate Status
Comment 3: Whether Commerce Should Revise the Consumption Rate for Corn
Comment 4: Whether Commerce Correctly Accounted for all of Eppen Group's Domestic Inland Freight
Comment 6: Whether Commerce Should Apply Total AFA to Longgu
Comment 7: Whether Commerce Should Apply Partial AFA to Longgu's Uncooperative Supplier
Comment 8: Whether Commerce Should Grant Certain By-Product Offsets and Deny the Offset for Corn Steep Liquor
Comment 9: Whether Commerce Selected the Appropriate SV for Corn Protein Powder
Comment 10: Whether Commerce Should Correct Certain Errors
Comment 11: Whether Commerce Correctly Selected the Primary Surrogate Country
Comment 12: Whether Commerce Selected the Appropriate SV for Freight
Comment 13: Whether Commerce Selected the Appropriate SV for Ammonia
Comment 14: Whether Commerce Should Grant Double Remedy Offsets
VI. Recommendation
Footnotes
1.
See L-Lysine from the People's Republic of China: Preliminary Affirmative Determination of Sales at Less-Than-Fair-Value, Postponement of Final Determination, and Extension of Provisional Measures,91 FR 11030 (March 6, 2026) (
Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM).
3.
See
Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination in the Less-Than-Fair-Value Investigation of L-Lysine from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
6.
See
Memorandum, “Verification of the Questionnaire Responses of the Eppen Group in the Less-Than-Fair-Value Investigation of L-lysine from the People's Republic of China” dated May 26, 2026 (the Eppen Group's Verification Report).
7.
See
Memorandum, “Verification of the Questionnaire Responses of Zhengzhou Longgu Trading Co., Ltd. in the Less-Than-Fair-Value Investigation of L-lysine from the People's Republic of China,” dated May 26, 2026 (Longgu's Verification Report).
8.
See
Memorandum, “Verification of the Questionnaire Responses of Shouguang Golden Corn Biotechnological Co., Ltd. in the Less-Than-Fair-Value Investigation of L-lysine from the People's Republic of China” dated May 26, 2026 (Golden Corn's Verification Report).
12.
See
Petitioner's Letter “Case Brief,” at 7-18;
see also
SAM Nutrition's Letter, “Sam Nutrition's Rebuttal Brief Regarding the June 22, 2026 NFI,” dated July 7, 2026 (SAM Nutrition's NFI Rebuttal Brief).
14.
See
Enforcement and Compliance's Policy Bulletin No. 05.1, regarding, “Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,” (April 5, 2005) (Policy Bulletin 05.1), available at
https://www.trade.gov/enforcement-and-compliance-policy-bulletins-0.
17.
See
unpublished final determination notice in the companion investigation, “L-lysine from the People's Republic of China: Final Affirmative Countervailing Duty Determination,” dated concurrently with this notice and accompanying 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 this notice.
18.
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);
see also
section 703(d) of the Act, which states that the provisional measures may not be in effect for more than four months, which in the companion CVD case is 120 days after the publication of the preliminary determination, or September 16, 2025 (
i.e.,
last day provisional measures are in effect).
Use this for formal legal and research references to the published document.
91 FR 46406
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“L-Lysine From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value,” thefederalregister.org (July 23, 2026), https://thefederalregister.org/documents/2026-14951/l-lysine-from-the-people-s-republic-of-china-final-affirmative-determination-of-sales-at-less-than-fair-value.