In accordance with the Countervailing Regulations of the People’s Republic of China (hereinafter referred to as the “Countervailing Regulations”), on January 12, 2016, the Ministry of Commerce (hereinafter referred to as the “Investigation Authority”) issued Announcement No. 3 of 2016, deciding to carry out countervailing investigation against imports of distiller’s dried grains with or without solubles (hereinafter referred to as the “Products under Investigation”) originated in the U.S.

The Investigation Authority has investigated into the existence of subsidies and the amount thereof, the existence of damage to China’s domestic industry of distiller’s dried grains with or without solubles caused by the Products under Investigation and the extent of such damage, as well as the causal relationship between the subsidies and the damage. According to the investigation findings and Article 25 of the Countervailing Regulations, the Investigation Authority released on September 28, 2016, announcement on preliminary ruling, affirming that there were subsidies for distiller’s dried grains with or without solubles originated in the U.S., and the domestic industry in China was substantially damaged, and there was causal relationship between the subsidies and the substantive damage.

Upon the preliminary ruling, the Investigation Authority continued its investigation into the subsidies, the amount thereof, the damage and the extent of such damage, as well as the causal relationship between the subsidies and the damage. The investigation now comes to an end. The Investigation Authority has made the final ruling (See Annex 1) according to Article 26 of the Countervailing Regulations. Relevant matters are hereby announced as follows:

I. Final Ruling

The Investigation Authority made a final ruling that, there were subsidies for imports of distiller's dried grains with or without solubles originated in the U.S. and the domestic industry in China was substantially damaged, and there was causal relationship between the subsidies and the substantive damage.

II. Levy of Countervailing Duties

The Ministry of Commerce, in accordance with Article 39 of the Countervailing Regulations, proposed suggestions on the levy of countervailing duties to the Customs Tariff Commission of the State Council, which then decided, as of January 12, 2017, to impose countervailing duties on imports of distiller's dried grains with or without solubles originated in the U.S.

Details of the Products under Investigation are as follows:
Investigation scope: imports of distiller's dried grains with or without solubles originated in the U.S.
Name of the product in question: distiller's dried grains with or without solubles.

Product description: distiller's dried grains with or without solubles are alcohol lees and dried residual liquid obtained after the processing of fermented liquid in the course of alcohol (ethanol) production by way of fermentation from such raw materials as corn and other grains, regardless of whether they contain soluble protein substances or not.

Main use: Distiller's dried grains with or without solubles are mainly used as feed for animals. Formula will be prescribed from distiller's dried grains with or without solubles and other nutrients for feeding poultry, livestock, aquatic products and special animals.

The tariff line of the product is 23033000 under the Customs Import and Export Tariff of the People's Republic of China. All products under the tariff line are Products under Investigation.

See Annex 2 for the rates of countervailing duty imposed on the companies.

III. Methods of Levying Countervailing Duties

As of January 12, 2017, importers shall pay relevant countervailing duties to the Customs of the People’s Republic of China according to the rates of countervailing duties determined in accordance with the final ruling when importing distiller's dried grains with or without solubles originated in the U.S. The countervailing duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: Countervailing duties = dutiable value authorized by China Customs x rate of countervailing duties. The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and countervailing duties as the taxable value.

IV. Retrospective Collection of Countervailing Duties

Deposits for temporary countervailing duties provided by relevant importers to the Customs of the People’s Republic of China from September 30, 2016 to January 11, 2017 according to the announcement on the preliminary ruling, shall be transferred on the basis of the scope of commodities subject to countervailing duties and the rates of countervailing duties determined in the final ruling to countervailing duties, and the import value-added tax shall also be levied at relevant rate of value-added tax. Any excess of the deposits provided by importers during this period over the countervailing duties and the corresponding import value-added tax will be refunded by the Customs, and the short-levied duties will not be levied.

Deposits provided by relevant importers, who imported the Products under Investigation from Boite and Anderson Company, to the Customs of the People’s Republic of China shall be transferred on the basis of the rate of countervailing duties set out in Annex 2 hereto for other U.S. companies to countervailing duties, and the import value-added tax shall also be levied at relevant rate of value-added tax; deposits provided by relevant importers, who imported the Products under Investigation from Marquis Energy-Wisconsin, LLC, to the Customs of the People’s Republic of China shall be transferred on the basis of the rate of countervailing duties set out in Annex 2 hereto for Marquis Energy (Wisconsin) LLC to countervailing duties, and the import value-added tax shall also be levied at relevant rate of value-added tax; deposits provided by relevant importers, who imported the Products under Investigation from companies not listed in the preliminary ruling but listed in the final ruling, to the Customs of the People’s Republic of China shall be transferred on the basis of the rate of countervailing duties determined in the announcement to countervailing duties, and the import value-added tax shall also be levied at relevant rate of value-added tax. Any excess shall be refunded and short-levied duties will not be levied. See Annex 1 to this Announcement for details.

Retrospective collection of countervailing duties will not be carried out for distiller's dried grains with or without solubles originated in the U.S. that were imported before the implementation of the temporary countervailing measures.

V. Period of Levying Countervailing Duties

Countervailing duties will be levied on the imports of distiller’s dried grains with or without solubles originated in the U.S. for five years.

VI. Review

During the period of levying countervailing duties, relevant interested parties may apply in writing to the Investigating Authority for a review in light of provisions of the Countervailing Regulations.

VII. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the final ruling of this case and the decision to levy countervailing duties may, according to Article 52 of the Countervailing Regulations, apply for an administrative reconsideration or initiate a litigation to the people's court according to the law.

VIII. The Announcement will take effect as of January 12, 2017.

Ministry of Commerce of the People’s Republic of China

January 11, 2017