U.S. Department of Commerce Finds Citric Acid From India Sold at Less Than Fair Value

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In an important announcement, the U.S. Department of Commerce has made a preliminary decision regarding citric acid and certain citrate salts from India. The Department found that these products are being sold in the United States at less than fair value. This means that the products are sold for less than they should be, which could harm U.S. businesses that make similar products.

Investigation Period and Preliminary Findings

The investigation looked at sales from January 1, 2025, to December 31, 2025. The Department of Commerce began this investigation in February 2026 and had to postpone the preliminary findings, which were finally issued on August 26, 2026.

The investigation discovered that one company, Daffodil Pharmachem Private Limited, may have been selling these products at unfair prices. Because Daffodil stopped participating in the investigation, the Department of Commerce had to rely on information available to determine the company’s dumping margin.

All-Others Rate Calculated

The Department also calculated what they called an “all-others rate.” This is an estimated dumping margin for other companies that were not directly investigated. This rate helps determine what other Indian exporters should pay if they are also selling at less-than-fair values in the U.S.

Suspension of Liquidation

Following the findings, the U.S. Customs and Border Protection (CBP) has been instructed to suspend the liquidation of these products. This means that the products can’t be sold or consumed until further notice.

CBP has also been directed to ask for a cash deposit from importers. This deposit is a specific amount based on the determined dumping margins, to help protect U.S. manufacturers while the investigation continues.

Public Comments and Further Process

The Department of Commerce is open to comments from the public about these preliminary findings. Interested parties have 14 days to submit their comments. There will be a chance to ask for a hearing about these findings as well. The final decision is now postponed to later this year to give more time for consideration and review.

Next Steps

This situation is closely monitored by the U.S. International Trade Commission. If the final determination is also affirmative, a decision will be made on whether these imports are causing harm to U.S. industries.

This is an evolving story, and both U.S. businesses and Indian exporters are awaiting the final ruling. Keep an eye out for updates as the investigation progresses.

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