U.S. Commerce Department Issues Preliminary Ruling on Chinese Lysine Imports

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On January 22, 2026, the U.S. Department of Commerce published a preliminary determination in the Federal Register regarding the ongoing countervailing duty (CVD) investigation concerning L-lysine imports from the People’s Republic of China.

The Department found that Chinese producers and exporters of L-lysine benefited from countervailable subsidies. These subsidies are financial contributions from authorities, providing benefits that are specific and unfair under U.S. trade law.

The investigation covers lysine widely used in animal feed. This includes several types: lysine monohydrochloride (lysine HCL), lysine sulfate, and liquid lysine. The scope also includes coated or encapsulated lysine as well as mixtures with other products. The covered products are classified under HTSUS code 2922.41.0090. Other possible classifications include 2922.41.0010, 2922.49.4950, 2309.90.7000, and 2309.90.9500.

The period of investigation spans from January 1, 2024, to December 31, 2024. The preliminary determination was originally scheduled for October 27, 2025, but was delayed due to a government shutdown and backlog. The effective date for the preliminary ruling is January 2, 2026.

Commerce conducted the investigation under section 701 of the Tariff Act of 1930. It used facts available and adverse inferences where some companies did not fully cooperate in providing requested information.

The Department determined the following preliminary subsidy rates:

  • Inner Mongolia Eppen Biotech Co. Ltd.: 39.50%
  • Heilongjiang Wanli Runda Biotechnology Co., Ltd.: 80.37% (adverse facts available)
  • Shouguang Golden-land Industry & Trading Co Ltd.: 80.37% (adverse facts available)
  • All Other Chinese producers/exporters: 39.50%

For Inner Mongolia Eppen, various affiliated firms were found to be cross-owned. These include:

  • Heilongjiang Eppen Trading Co., Ltd.
  • Heilongjiang Eppen Biotech Co., Ltd.
  • Heilongjiang Eppen Energy Co.
  • Ningxia Eppen Biotech Co. Ltd.
  • Star Lake Bioscience Co., Ltd Zhaoqing Guangdong
  • Guangdong Guangxin Holdings Group Ltd.

U.S. Customs and Border Protection has been directed to suspend the liquidation of all entries of lysine from China that enter the U.S. on or after the publication date. Importers must post cash deposits equal to the subsidy rates listed.

Commerce has also aligned the final determination date of this CVD investigation with the final determination date of the companion antidumping duty investigation. The final determinations are expected no later than May 18, 2026, unless postponed.

Commerce will release calculation details within five days and allow parties to submit comments. Interested parties may also request a hearing. The timeline for written briefs and hearing requests will be provided later.

If the final determination is affirmative, the U.S. International Trade Commission (ITC) will decide if imports of lysine from China are causing or threatening injury to the domestic industry. ITC’s decision would be expected within 120 days of this preliminary ruling or 45 days after the final determination, whichever is later.

This notice is published under sections 703(f) and 777(i)(1) of the Tariff Act of 1930 and 19 CFR 351.205(c).

For additional information, contact:

Grant Fuller
AD/CVD Operations, Office IX
U.S. Department of Commerce
(202) 482-6228

Source: Federal Register, Volume 91, Number 14 (January 22, 2026), Document No. 2026-01193.


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