WASHINGTON - The US Commerce Department on Wednesday announced its preliminary affirmative determination in the antidumping duty (AD) investigation against imports of ammonium sulfate from China, signaling that it may pose punitive duties on the products.

The department said that such products from China had been sold in the United States at dumping margin of 493.46 percent.

As a result of the preliminary affirmative determinations, Commerce will instruct US Customs and Border Protection to require cash deposits based on these preliminary rates.

The Commerce launched AD and countervailing duty (CVD) investigations against imports of such products from China in June 2016, in response to a request from PCI Nitrogen based in Texas.

The Commerce made its preliminary affirmative determination in the CVD investigation last week, saying that producers and exporters of such products from China had received countervailing subsidies at 206.72 percent.

Punitive duties would be imposed after both the Commerce Department and the US International Trade Commission (USITC) make affirmative final rulings. The Commerce is scheduled to make its final determinations in January next year and the USITC is scheduled to make its final determination in March 2017.

Ammonium sulfate is primarily used as a fertilizer and it can also be used in industrial applications, such as in the production of flame retardant materials for food and feed additives. Imports of these products from China were estimated at about $62 million in 2015, according to US official data.

The Chinese Ministry of Commerce has kept urging Washington to abide by its commitment against protectionism and help maintain a free, open and just international trade environment.