Anti-Dumping & Countervailing Duties - ADVANCED TOPICS · What is Dumping? v Dumping occurs when a...

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Anti-Dumping & Countervailing Duties 101 – What you need to know

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v WhyisADCVDimportant?1/29/16

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Importance Of Understanding AD & CVD

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Understanding AD & CVD v  Keytake-a-waysfromCBP“2014AD/CVDupdate”

o  $508.5millioninADD/CVDdepositscollectedin2014--a12percentincreasefromthepreviousyear.

o  IncreaseresultedprimarilyfromauditsofimportersofADD/CVDcommodiVesandCBP’senhancedtargeVngprogram.

o  In2014,CBPconducted78auditsofimportersofAD/CVDcommodiVes§  idenVfiedADD/CVDdiscrepancieswithavalueof$14.5million,plus$10.1millionindisclosures,

penalVesandinterest.

§  CommodiVesinvolvedintheauditsincludealuminumextrusions,bearings,candles,nails,lockwashers,pencils,plasVcbags,ribbons,shrimp,solarcells,steelpipe,Vres,Vssuepaper,uncoveredinnerspringma^ressunits,woodenbedroomfurniture,andwoodflooring.



h^p://enforcement.trade.gov/stats/iastats1.html

Resources

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h^p://trade.gov/enforcement

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A n t i d u m p i n g M a n u a l

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h^p://enforcement.trade.gov/admanual/

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http://www.usitc.gov/trade_remedy.htm

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Overview v  AnVdumpingandcountervailingdutyprovisionsareapartofU.S.lawsintendedtocombat“unfair

tradepracVces”thatinjureorharmU.S.industryanditsworkers.

v  AnVdumpingduVesmakeupforthedifferenceinpriceofimportsthataresoldintheUnitedStatesandthepricetheyaresoldforinproducer’shomecountry(the“normalvalue”*)("dumped")(Soldat“LessThanFairValue”)

v  CountervailingduVesoffsetthebenefitgainedbyforeignexportersfromsubsidiesprovidedbyaforeigngovernmentonexportmerchandisethatissoldintheUnitedStates

*“normalvalue”pricesmaybepricesintheproducer’shomecountry,otherthirdcountrymarkets,constructedvalue,orincasesinvolvingnonmarketeconomycountries,factorsofproducVon.


General Timeline For InvesBgaBons


What is Dumping?

v Dumpingoccurswhenaforeignexporter/producer:•  sellsaproducttotheUnitedStates(“exportprice”(EP)or“constructedexportprice”(CEP))

•  atapricethatisbelowthe“normalvalue”inthecountryoforigin("homemarket"),a3rdcountryoratapricethatislowerthanthecostofproducVon.

•  AnddomesVcindustryofalikeproductissuffering“materialinjury”orthreatenedwithmaterialinjuryasaresultofimportsofthedumpedproducts

•  “normalvalue(NV)”isthepriceatwhichtheforeignlikeproductisfirstsoldforconsumpVonintheexporVngcountry(EC).

v Differencebetweenthehomemarketprice(orcost)andtheexportpricetotheU.S.isthe“dumpingmargin.”


Sample Ad Valorem Margin CalculaBon


The ITC Injury Element v  TheITCisrequiredtodeterminewhether:

o  aU.S.industryismateriallyinjuredorthreatenedwithinjury,or

o  theestablishmentofaU.S.industryismateriallyretarded"byreasonof"theallegedless-than-fair-valueimports.

o  Mustestablishacausallinkbetweentheinjuryandtheimportsallegedlysoldatless-than-fairvalue.

§  WhethervolumeofsubjectimportsandwhetherithasdepresseddomesVcproducVon

§  WhethertherehasbeensignificantpriceundersellingbysubjectimportscomparedtothepricesofdomesVclikeproduct(s)orotherwisepreventedpriceincreases

§  Etc.


What is a Subsidy?

v  Foreigngovernmentssubsidizeindustrieswhentheyprovide:§  financialassistancetobenefittheproducVon,manufactureorexportaVonofgoods.

v  Subsidiescantakemanyforms,suchas:§  directcashpayments,creditsagainsttaxes,and

§  loansattermsthatdonotreflectmarketcondiVons

v  Inmostcases,thedomesVcindustryissufferingmaterialinjuryasaresultofimportsofthesubsidizedproducts.

v  Theamountofsubsidiestheforeignproducerreceivesfromthegovernmentisthebasisforthesubsidyratebywhichthesubsidyisoffset,or"countervailed,"throughhigherimportduVes.


SeKng of AD/CVD Rates v  IfinvesVgaVoninvolvesalargenumberofexportersandproducers,statuteauthorizesselecVonof

asampleofexportersandproducersforindividualinvesVgaVon.

v  ExportersorproducerswhoareiniVallyselectedbyCommercearecalledmandatoryrespondents.

v  MandatoryrespondentswhocooperatewithinvesVgaVonaregivencountervailingdutyratesparVculartotheirindividualcircumstances.

v  Mandatoryrespondentswhofailtocooperatetothebestoftheirabilityaregivenratesdeterminedusingadversefactsavailable(“AFA”).

v  “All-others”rateo  StatuteprovidesforthecalculaVonofan“all-others”ratewhichappliestoexportersorproducerswho

arenotindividuallyinvesVgated.

o  “All-others”arethoseexportersorproducersnotexaminedasiniValselecteesorasvoluntaryrespondents.

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SeKng of AD/CVD Rates: 19 CFR 351.107 v  Cashdepositratesfornonproducingexporters

o  whereentrydocumentsdonotidenVfytheproducerofmerchandisecashdepositrateishigherof:

§  the“all-othersrate”or

§  highestofanycombinaVoncashdepositrateestablishedfortheexporter/knownproducer

v  UseofcombinaVonrates(producer/exporter)o  SeparatecashdepositrateswillapplyforeachExporter/ProducercombinaVon.

o  Newshippers:Formerchandiseexportedbyacompanythatisnottheproducer,the“all-othersrate”willapplyunlessacashdepositratefortheproducerhasbeenpreviouslyestablished

v  Nonmarketeconomycountries(NMEs)“rates”mayconsistofasingledumpingmarginapplicabletoallexportersandproducers.

o  SeediscussiononestablishingofSeparateAratesinNMEs(i.e.,China)


SSuussppeennssiioonn ooff LLiiqquuiiddaaBBoonn v  OnceaninvesVgaVoniscommencedandanaffirmaVvepreliminarydeterminaVonbyCommerce

ismade,CBPisinstructedtowithholdliquidaVononentriesofthesubjectmerchandiseandtocollectAD/CVDduVes(cashdeposits)

v  IftheentryinquesVonisaType03entryandsubjecttoAD/CVDduVes,thensuspensionofliquidaVonoccurs.

v  SuspensionofliquidaVonremainsineffectunVltheunderlyingAD/CVDissueisresolvedandaffirmaVvefinaldeterminaVonisissued.

v  CommercethenissuesinstrucVonstoCBPtolinthesuspensionandliquidatetheentries.

v  SuspensionofliquidaVoncanremainineffectwhilecaseisunderjudicialreview.


Determining the Scope of the Order v  PeVVoniniVallydeterminesthescopeoftheproductsthatarethesubjectoftheinvesVgaVono  peVVonerisrequiredtoincludeadetaileddescripVonofthemerchandise

o  includesthephysicalandtechnicalcharacterisVcsandusesofthemerchandiseanditscurrentHTSUSclassificaVonnumber.

v  InterestedparVesareabletoraiseissuesregardingscopewithinthe20daysofthenoVceofiniVaVon.

v  CommerceisresponsiblefordescribingthegoodsubjecttotheinvesVgaVon/orders,and

v  interpreVngtheADandCVDordersanddeterminingwhetherproductsfallwithinthescopeoftheorder


Cash Deposits vs. Assessments


Posting of Cash Deposits for AD/CVD duties v CBPcollectsthecashdepositattheVmeofentrysummaryfiling

o  CashdepositrateremainsineffectpendingaFinalAffirmaVveDeterminaVonbyCommerceo  IntheFinalAffirmaVveDeterminaVonbyCommercetheAD/CVDratecanchange.o  FollowingtheFinalAffirmaVveDeterminaVonbyITC,Commerceissuesinstruc(onstoCBPtoliquidatethe

suspendedentriesatthefinaldesignatedrates

v  Iffinalrateishigherthanthepreliminarydepositrate,CBPistodisregardthedifference(prelimperiodonly)

v  Iffinalrateislowerthanpreliminarydepositrate,CBPwillliquidatewithdutyrefund.

v  IfFinalDeterminaVonbyCommerceisnegaVve,CBPwillliquidatewithrefundofdeposit.

v SubsequentlegalchallengewillsuspendfinalacVonpendingcourtdecisionandanyappeals(maytakeyearstoresolve)


PosBng of Cash Deposits for AD/CVD duBes

v FinalOrders–LiningofSuspensionofLiquidaVono  CBPhas180daysfromdateofordertoliquidateasuspendedentry(refundorincrease)basedon

instrucVonsfromCommerce

o  Aner180daysentrywillbe“deemedliquidated”asenteredifnoacVontaken.o  Importerhas180daystofileprotestfollowingdeemedliquidateddateifentryisnotliquidated

withrefund

o  AcourtchallengetoadumpingorCVDordermustrequesttheconVnuedsuspensionofliquidaVonoftheentriesfortheexporter(s)ofthegoods.§  Importers/exporters

§  DomesVcparVes


Annual AdministraBve Reviews


AdministraBve (Annual) Reviews

v  SubsequentassessmentofAD/CVDduVeso  EachAD/CVDordercoversaspecificperiodofVme(generallyoneyear)

o  DuringtheAnniversarymonthofthefinalaffirmaVveorder,interestedparVes(importers,exporters,foreignmanufacturersanddomesVcparVes)mayrequestareviewofthedepositrates.

§  Ifareviewisrequested,Commercewillconductareviewoftheratesandissueanewratefortheforeignmanufacturer/exporter,whichwillthenapplytoimportsforthePOR

§  Newratewillbethedepositrateforthenextperiod.

§  Ifnoannualreviewisrequested,depositratewillremainthesameandtheentriesareliquidated.

o  RequestsforadministraVvereviewsmustbereceivedbythelastdayoftheanniversarymonthofthepublicaVonoftherespecVveADorCVDorder


Are my Goods Subject to AD or CVD orders?

v Monitoringfornewcaseso  MustmonitorWebsites(ITAorITC)or

FederalRegisterfornoVcesofIniVaVonofInvesVgaVon

o  SecVon701(countervailingduty)&731(anVdumpingduty)peVVonpublishedbyITC

o  h^p://www.usitc.gov/peVVons_and_complaints/index.htm

o  CommercewillpublishaNoVceofIniVaVonintheFederalRegister.


CBP Website: adcvd.cbp.dhs.gov


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AD/CVD Non-Reimbursement Statements

v  SpecialrequirementsforimportssubjecttoAD/CVDduVes

v  TheimporterisrequiredtofileacerVficateadvisingwhetherithasenteredintoanagreementorotherwisehasreceivedreimbursementofADduVes.

v  MaybeindividualorblanketcerVficaVonstatements

v  IfanimporterfailstoprovideastatementofreimbursementpriortoliquidaVon,CBPwillpresumereimbursementanddoublethedu(es.

v  Importersmayfilenon-reimbursementstatementsthroughACE.

v  FormoreinformaVononreimbursementcerVficates,seeh^p://www.cbp.gov/linkhandler/cgov/trade/priority_trade/add_cvd/program_guidelines/guidance_for_cert.c^/guidance_for_cert.pdf.


Thank You! Any Questions? GeorgeR.Tu5le,IIIA^orney,Tu^leLawPhone:(415)986-8780

Email:geo@tu^lelaw.comwww.tu^lelaw.com

441/29/16 TUTTLELAWOFFICES

Anti-Dumping & Countervailing Duties - ADVANCED TOPICS · What is Dumping? v Dumping occurs when a...

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