AFI Association of Food Industries


AFI Serving the U.S. Food Import Sector

2023 NHPDA Report

Andy Sargeantson
Sunland Trading Inc.

Since late November 2021, the National Honey Packers and Dealers Association and the honey industry as whole have been learning how to operate within the confines of antidumping and countervailing duties on four main countries of supply – Argentina, Brazil, India and Vietnam.

The first period of review ends on May 31, 2023 and the market has changed considerably over the course of the review period. As I am sure many AFI industries have experienced, Covid-related demand, supply disruptions and transportation costs created a large bubble for prices. On top of all those things, the honey industry had the added impact of new duties. Now that demand has normalized and perhaps lessened because of the global recession, along with supply chains and transportation costs normalizing, prices have fallen precipitously throughout the last 6-9 months.

Antidumping and countervailing duties add a layer of significant risk for importers. Duty deposits are held by Customs and Border Protection at the time of entry based on the announced duty rate. The Department of Commerce then reviews entries during a defined period, taking almost a year to do so - and then can liquidate your entry at a revised rate that could be higher than the original deposit rate. It can be years until an importer knows its actual costs. The actual cost basis could be far higher than expected, potentially so high that paying the final duty would put their firm out of business. In order to mitgate this risk, importers and exporters work with lawyers and consultants to ensure that it is unlikely the DOC will make upward duty revisions.

In addition to the complexities surrounding antidumping duties, the global industry continues to fight against adulteration. The European Commission and JRC announced results from their ‘From the Hives’ supply chain and honey authenticity project. 46 percent of 320 samples taken tested suspicious for adulteration, while around 50-60 percent of exporters and importers handled suspicious consignments. In the U.S., the NHPDA has already been working proactively with FDA to modernize and add additional authenticity tests at port of entry. We have scheduled an additional meeting for this June in Washington D.C., with hopes of meeting with relevant government agencies on the topic of adulteration.

Through the NHPDA, member companies have access to legal help and resources needed to operate within a very challenging working environment. It would be impossible to independently tackle both antidumping duties and global honey quality issues. The organization also looks out for members’ best interests across a variety of fronts. For example, we are currently combatting a constant stream of products that falsely label or advertise their product as containing honey when in fact honey is not listed on the ingredient statement. The issues that face our industry are numerous, but through the NHPDA we are able to work together towards better outcomes for honey packers and importers.


2023 U.S. Food Import Industry Annual Report

Chairman's Report - John Sessler

North American Olive Oil Association - Mouna Aissaoui

Processed Foods - Brent Danielson

Nut & Agricultural Products - Richard Rosenblatt

National Honey Packers & Dealers - Andy Sargeantson

Regulatory and Trade Issues

Food Importers Facing New Enforcement Environment

Common FSVP-Related Questions

ESOPs

Nearshoring

Association of Food Industries: Serving the U.S. Food Import Trade Since 1906
3301 Route 66, Ste. 205, Bldg. C • Neptune, NJ 07753
(732) 922-3008 • Fax: (732) 922-3590 • afius.org • info@afius.org