U.S. Issues Final Countervailing Duty on Erythritol Imports from China
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Date: 2026-02-10
The U.S. Department of Commerce has announced a final affirmative determination in its countervailing duty investigation of erythritol from the People’s Republic of China. The final decision was published in the Federal Register on February 10, 2026 (Federal Register Volume 91, Number 27, Pages 5920–5922).
The investigation covered the period from January 1, 2023, through December 31, 2023.
Commerce determined that producers and exporters of erythritol from China received countervailable subsidies during the period of investigation.
This investigation was conducted by the International Trade Administration, Enforcement and Compliance division.
The contact officer for the case is Christopher Doyle of AD/CVD Operations, Office IX, reachable at (202) 482–2805.
BACKGROUND
Commerce published its preliminary determination on May 16, 2025 (90 FR 21000), and later issued a post-preliminary analysis memorandum on June 24, 2025.
A 68-day tolling adjustment was made due to a federal government shutdown and subsequent backlog. The final determination deadline was extended to February 4, 2026.
SCOPE OF INVESTIGATION
The product covered is erythritol from China, regardless of form. Erythritol is a white, crystalline sugar alcohol with the molecular formula C4H10O4 and CAS number 149-32-6.
It includes crystalline, powdered, directly compressible, and organic forms. The product is generally classified under HTSUS 2905.49.4000 and may also fall under 2106.90.9998.
Excluded from the scope are certain tabletop sugar substitute products that contain erythritol along with a high-intensity sweetener, and are packaged and labeled for retail sale or individual consumption.
SCOPE COMMENTS
Parties submitted comments regarding the product scope based on the preliminary decision. Commerce analyzed the comments and made one change to the product description, as reflected in Appendix I of the notice.
VERIFICATION
Commerce conducted on-site verification to confirm the accuracy of data provided by Baolingbao Biology Co., Ltd. and Shandong Sanyuan Biotechnology Co., Ltd.
Standard procedures were used to examine accounting records and source documents, with verification reports issued in July 2025.
METHODOLOGY
Commerce evaluated Chinese government programs under sections 701, 771(5)(B), 771(5)(D), 771(5)(E), and 771(5A) of the Tariff Act of 1930.
Some findings relied on facts otherwise available with adverse inferences under sections 776(a) and 776(b).
SUBSIDY PROGRAM ANALYSIS
Changes were made to subsidy calculations for both Baolingbao Biology and Shandong Sanyuan. Adjustments included program additions from the post-preliminary analysis.
A full discussion is available in the Issues and Decision Memorandum, linked via the ACCESS system at https://access.trade.gov.
ALL-OTHERS RATE
Commerce established an estimated all-others subsidy rate using a weighted average of the rates from the two individually examined companies, based on publicly ranged sales data.
This procedure follows section 705(c)(5)(A) of the Act and applicable case precedent.
FINAL SUBSIDY RATES
Final countervailable subsidy margins are as follows:
- Baolingbao Biology Co., Ltd.: 4.54%
- Shandong Sanyuan Biotechnology Co., Ltd.: 8.63%
- All Other Producers/Exporters: 8.12%
These ad valorem rates apply to entries of erythritol from China during the stated period.
SUSPENSION OF LIQUIDATION
Commerce instructed U.S. Customs and Border Protection to continue suspension of liquidation for entries on or before September 12, 2025.
If the International Trade Commission (ITC) issues a final affirmative injury determination, Commerce will issue a countervailing duty order requiring cash deposits.
If the ITC issues a negative injury determination, the proceeding will terminate, and any collected duties will be refunded.
ITC PROCESS
The ITC will determine within 45 days whether the U.S. domestic industry is materially injured or threatened by imports of erythritol from China.
If affirmative, a countervailing duty order will follow. Commerce will then direct CBP to assess countervailing duties for all relevant entries.
APO REMINDER
All Administrative Protective Order (APO) information must be properly returned or destroyed in accordance with 19 CFR 351.305(a)(3).
Failure to comply may result in sanctions.
AUTHORIZATION
This determination was approved by the Deputy Assistant Secretary for Policy and Negotiations, Christopher Abbott, on February 4, 2026.
The full Issues and Decision Memorandum, Scope Comments, and revised scope description appear in the appendices of the official Federal Register notice (FR Doc No. 2026-02563).
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