Anti-Subsidy Tax Imposed on BBCA Biochemical     

Anhui BBCA Biochemical Co., Ltd. (SZ: 000930) announced that on September 15th the Department of Commerce of the United States made a preliminary anti-subsidy ruling on citric acid and citrates originated from China. Starting September 15th, 2008, an anti-subsidy tax of 97.72% will be imposed on citric acid and citrates exported by the company to the United States.
    In early May, the International Trade Commission of the United States launched an antidumping and anti-subsidy investigation into citric acid and citrates originated from China. The duration of the antidumping investigation is from October 1st, 2007 to March 31st, 2008. The duration of the anti-subsidy investigation is the whole year of 2007. During the investigation period Anhui BBCA Biochemical was one of the major enterprises exporting citric acid and citrates to the United States.
   Around 7% of citric acid and citrates produced by the company are exported to the United States (around 11 000 tons in 2007). The proportion of citric acid and citrates in the total export value of the company is relatively small. The high anti-subsidy tax on citric acid and citrates by the United States has reduced the company's competitiveness of these products in the American market. The company will however expand actively sales in Asia, South America and the European markets.
   The Department of Commerce of the United States will make a final anti-subsidy ruling on the case on January 28th, 2009. The International Trade Commission of the United States will make a final industrial injury ruling on the case on March 16th, 2009.