On September 16, 2011, the Ministry of Commerce of the People's Republic of China (the “Investigation Authority”) issued Announcement No.54 of 2011, deciding to conduct countervailing measures against imports of potato starch originated in the EU for five years from September 17, 2011.

On September 14, 2016, in response to the application from the industry of potato starch in China, the Investigation Authority released an announcement, deciding to conduct final review investigation into the countervailing measures applicable to imports of potato starch originated in the EU. In December 2016, the Investigation Authority issued Announcement No.72 of 2016, affirming the name changes of related companies according to the law.

The Investigation Authority conducted investigation into the possibility of continuation or reoccurrence of subsidies for the imports of potato starch originated in the EU and the injury caused to potato starch industry in China in case of terminating the original countervailing measures, made the ruling on the review (See the Annex) in accordance with Article 47 of the Countervailing Rules of the People's Republic of China (the “Countervailing Rules”) and related matters are announced as follows:

I. Review Ruling

The Investigation Authority ruled that the subsidies for the imports of potato starch originated in the EU could continue or reoccur and the injury caused to the industry of potato starch in China may continue or reoccur in case of terminating the countervailing measures.

II. Countervailing Measures

The Investigation Authority, in accordance with Article 49 of the Anti-dumping Regulations and the investigation findings, proposed suggestions on the implementation of the countervailing measures to the Customs Tariff Commission of the State Council, which then decided as suggested by the Investigation Authority, as of September 16, 2017, to continue imposing countervailing duties on imports of potato starch originated in the EU for five years.

The scope of the products subject to the countervailing duties is the same as that set out in MOFCOM Announcement No. 54 of 2011. Specific information is as follows:
Name of the Products under Investigation: 马铃薯淀粉, also known as 马铃薯原淀粉、马铃薯精制淀粉、马铃薯生粉、土豆淀粉 or 洋芋淀粉, etc. (English name: Potato Starch).

Specific description of the product under investigation: potato starch is a white powder made from potato and made up of glucose molecules. Its physical and chemical indexes are: whiteness (457nm blue reflectance) is not less than 90%; water is not more than 20%; viscosity (4% concentration, 700cmg) is not less than1100BU and protein (content in dry matter) is not more than 0.15%.

Main purposes: in China, potato starch is mainly used in food industry, and is an important raw material for producing emulsifiers, thickeners, stabilizers, bulking agents, excipients and others. It is widely used in puffed food, convenient food, sausage, ham and other meat products, frozen food, sauce, mashed and soup foods, beverages, sauces, cooking, sugar, aquatic product processing and other industries.

The product under investigation is listed under tariff number of 11081300 in the Customs Import and Export Tariff of the People’s Republic of China.

The countervailing duty rate applicable to the products subject to investigation in this round of final review of countervailing measures is the same as that stated in the MOFCOM Announcement No.54 of 2011 and MOFCOM Announcement No.72 of 2016.

III. Methods of Levying Countervailing Duties

As of September 16, 2017, import operators shall pay relevant countervailing duties to the Customs of the People’s Republic of China when importing potato starch originated in the EU. 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 * 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. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the review may, according to Article 52 of the Countervailing Regulations, apply for an administrative reconsideration or initiate litigation to the people's court according to the law.

V. The MOFCOM Announcement No.38 of 2017 on the Final Review of the Countervailing Measures against
Imports of Potato Starch Originated in the EU will take effect as of September 16, 2017.

Ministry of Commerce of the People’s Republic of China
September 15, 2017