The Fruit Growers News


	The Fruit Growers News website offers a sampling of articles and features from each month. Subscribe to get all the news offered in The Fruit Growers News delivered right to you home! Permission is granted for reprinting material, except for commercial or advertising purposes, provided The Fruit Growers News is given full credit.

China Regains Lead in Export of Apple Juice Concentrate

USApple looks to block new ways of cheating on duties

By Karen Gentry Associate Editor
China has reemerged as the number-one exporter of apple juice concentrate to the United States. Although the number of gallons coming into the United States is less than a year ago, prices in the $3.50-$4 range are the same as when the U.S. Apple Association (USApple) initiated the anti-dumping case against China.

Importers of apple juice concentrate have found ways around anti-dumping duties and USApple aims to close loopholes and possible seek an administrative review of some Chinese processors.

The apple industry is considering whether to request an administrative review on one or all of the nine Chinese processors that received less than the 52% anti-dumping duties that all other producers received, according to Kraig Naasz, president and CEO of USApple.

Through an administrative review the U.S. Commerce Department would recalculate the cost of production for the nine companies by reviewing shipment records and adjusting the anti-dumping duty rates if warranted. If the duty rates are adjusted upwards, any importers of product from those companies would be required to pay the difference in rates, retroactive, plus interest back to Nov. 23, 1999, Naasz said. He said the decision on whether to seek an administrative review would be made by the end of June by the Coalition for Fair Apple-Juice Concentrate Trade (FACT). The process would take approximately one year, meaning importers buying product from those producers would have to pay any increased duty rates plus interest.

Rates for the nine companies with less than the 52% anti-dumping rate, vary from 8.98% to 28%, according to Naasz. He said there is also a company that pays no duties. These companies represent one-third of the volume of apple juice concentrate exported while the companies receiving 52% represent two-thirds of the volume exported. There is also concern that companies with lower duty rates are exporting concentrate not produced in their facility.

Frozen loophole
USApple wants chilled or frozen apple juice concentrate treated equally with non-frozen when considering duties. The association made a request April 19 to the Commerce Department to extend anti-dumping duties on Chinese imports to include frozen concentrate. The Commerce Department initiated its study of the frozen/non-frozen issue on June 4 and is accepting comments in rebuttal of USApple’s position until July 5.

“We expect them to react favorably,” said Naasz. He said concentrate was being chilled and imported to the U.S. duty-free while some non-frozen concentrate was exported and chilled in Canada before being shipped to the U.S.

Stopping circumvention
USApple is concerned about third countries, particularly Hungary and Poland, blending juices with Chinese apple juice concentrate and then shipping to the United States. Hungary’s exports compared to a year ago have increased 1,009% while Poland’s have increased by 633%, Naasz said. This data has not escaped the attention of U.S. Customs and possible criminal investigations of importers may be underway, although these investigations are confidential.

Naasz said U.S. Customs is seeking input on how to perfect the fingerprint processes to test origin of concentrate to be able to detect any product of Chinese origin. This technical capability is necessary for federal prosecutions to prove beyond a doubt that circumvention was occuring.