There is now an opportunity to request DOC AD/CVD Administrative Reviews for a slew of products.
We have posted about many antidumping (AD) and countervailing duty (CVD) petitions that trigger investigations conducted by the U.S. Department of Commerce (DOC) and U.S. International Trade Commission (ITC) on imports of certain products. Most of these cases result in AD/CVD orders being issued after the DOC and the ITC complete their investigations and make final determinations on whether a domestic industry is injured by subject imports (ITC) and to what extent those imports are dumped or subsidized (DOC).
What surprises many U.S. importers about these AD/CVD investigations is that the dumping and subsidy rates calculated in these investigations are only deposit rates and that the final assessment of the AD/CVD duties will only be made sometimes up to two to three years after the imported merchandise has been declared and cleared by U.S. Customs and Border Protection (CBP). Often importers are hit with a huge bill from CBP when DOC calculates an AD/CVD margin in an administrative review that is much higher than the AD/CVD rates calculated in the investigation or prior administrative review. In cases involving products from China, the AD/CVD margins can change from zero or single-digits to over 100%. Importers who mistakenly think that the manageable amount of AD/CVD duties they paid at the time of entry was the total final amount they owed are often blind-sided several years later when they get another bill from CBP to pay a huge amount of additional AD/CVD duties.
The U.S. is the only country that uses a retrospective trade remedy system. All other countries (EU, Canada, China, etc.) use a prospective system in which the AD/CVD rates calculated in the investigation are the final AD/CVD rates assessed on subject imports at the time of entry. The prospective system used by the rest of the world is theoretically less precise than the US system of recalculating updated AD/CVD margins in annual administrative reviews. But the prospective system allows for greater predictability because the AD/CVD duties paid at the time of entry are final and importers and exporters can plan accordingly.
Under the U.S. retrospective system, AD/CVD deposit rates are subject to an annual administrative review process in which the DOC reviews entries subject to AD/CVD orders during the period of review (usually the prior 12 month period) and determines whether the AD/CVD deposit rates need to be adjusted (higher or lower) or should stay the same. Only after DOC completes an administrative review does an importer know its final AD/CVD liability for entries that were made years before. This uncertainty about how much AD/CVD duties they will ultimately owe creates a significant amount of risk causing many companies to stop importing those products altogether. Any importer that chooses to import goods subject to AD/CVD duties better understand how those duties are calculated and assessed so that they can make an informed decision on how much risk they are willing to take on those imports.
Importers are often surprised when they learn their foreign suppliers decide they are unable or unwilling to participate in DOC’s administrative review process. If a foreign exporter does not cooperate by responding to DOC’s questionnaires, DOC usually assigns an AD/CVD rate based on adverse facts available which is usually the highest AD/CVD rate alleged in the petition or determined by DOC in a prior proceeding. Although U.S. importers are responsible for paying the AD/CVD duties on US import entries, DOC determines the AD/CVD rates based on the sales and cost data provided by the foreign producer/ exporter. Ideally, a U.S. importer coordinates with its foreign exporter to make sure their foreign exporter is ready to participate in a DOC administrative review to try to reduce or even eliminate its AD/CVD duty liability.
Here is a link to DOC’s Federal Register notice listing all the AD/CVD orders with a December anniversary month. Any interested party who would like DOC to conduct an administrative review for certain companies can submit an administrative review request to DOC by the end of the month. Any company that imports products covered by any of these AD/CVD orders should monitor DOC to see if any administrative review requests are filed for their suppliers. Pursuant to submitted review requests, DOC will publish a list of the companies that are subject to initiated administrative reviews at the end of January or early February.
Antidumping Duty Proceedings (Period of Review: mostly 12/1/20 – 11/30/21)
BRAZIL: Carbon Steel Butt-Weld Pipe Fittings A-351- 602
CHILE: Certain Preserved Mushrooms A-337- 804
GERMANY: Non-Oriented Electrical Steel A-428-843
INDIA: Carbazole Violet Pigment 23 A-533-838
INDIA: Certain Hot-Rolled Carbon Steel Flat Products A-533-820
INDIA: Commodity Matchbooks A-533-848
INDIA: Forged Steel Fittings A-533-891
INDIA: Stainless Steel Wire Rod A-533-808
INDONESIA: Certain Hot-Rolled Carbon Steel Flat Products A-560-812
JAPAN: Prestressed Concrete Steel Wire Strand A-588-068
JAPAN: Non-Oriented Electrical Steel A-588-872
JAPAN: Welded Large Diameter Line Pipe A-588-857
OMAN: Circular Welded Carbon-Quality Steel Pipe A-523-812
PAKISTAN: Circular Welded Carbon-Quality Steel Pipe A-535-903
REPUBLIC OF KOREA: Forged Steel Fittings A-580-904
REPUBLIC OF KOREA: Non-Oriented Electrical Steel A-580-872
REPUBLIC OF KOREA: Welded Astm A-312 Stainless Steel Pipe A-580-810
REPUBLIC OF KOREA: Welded Line Pipe A-580-876
RUSSIA: Certain Hot-Rolled Flat-Rolled Carbon-Quality Steel Products A-821-809
SINGAPORE: Acetone A-559-808
SOCIALIST REPUBLIC OF VIETNAM: Uncovered Innerspring Units A-552-803
SOUTH AFRICA: Uncovered Innerspring Units A-791-821
SPAIN: Acetone A-469-819
SWEDEN: Non-Oriented Electrical Steel A-401-809
TAIWAN: Carbon Steel Butt-Weld Pipe Fittings A-583-605
TAIWAN: Non-Oriented Electrical Steel A-583-851
TAIWAN: Steel Wire Garment Hangers A-583-849
TAIWAN: Welded Astm A-312 Stainless Steel Pipe A-583-815
THAILAND: Carbon and Alloy Steel Threaded Rod A-549-840
THE PEOPLE’S REPUBLIC OF CHINA: Aluminum Wire and Cable A-570-095
THE PEOPLE’S REPUBLIC OF CHINA: Carbazole Violet Pigment 23
A-570-892
THE PEOPLE’S REPUBLIC OF CHINA: Certain Cased Pencils
A-570-827
THE PEOPLE’S REPUBLIC OF CHINA: Crystalline Silicon Photovoltaic Cells, Whether Or Not Assembled Into Modules A-570-979
THE PEOPLE’S REPUBLIC OF CHINA: Hand Trucks and Certain Parts Thereof A-570-891
THE PEOPLE’S REPUBLIC OF CHINA: Honey A-570-863
THE PEOPLE’S REPUBLIC OF CHINA: Malleable Cast Iron Pipe Fittings A-570-881
THE PEOPLE’S REPUBLIC OF CHINA: Mattresses A-570-092
THE PEOPLE’S REPUBLIC OF CHINA: Melamine A-570-020
THE PEOPLE’S REPUBLIC OF CHINA: Multilayered Wood Flooring A-570-970
THE PEOPLE’S REPUBLIC OF CHINA: Non-Oriented Electrical Steel A-570-996
THE PEOPLE’S REPUBLIC OF CHINA: Porcelain-On-Steel Cooking Ware3 A-570-506
THE PEOPLE’S REPUBLIC OF CHINA: Refillable Stainless Steel Kegs A-570-093
THE PEOPLE’S REPUBLIC OF CHINA: Silicomanganese A-570-828
THE PEOPLE’S REPUBLIC OF CHINA: Vertical Metal File Cabinets A-570-110
TURKEY: Welded Line Pipe A-489-822
UNITED ARAB EMIRATES: Circular Welded Carbon-Quality Steel Pipe A-520-807
Countervailing Duty Proceedings (period of review: mostly 1/1/20 – 12/31/20)
INDIA: Carbazole Violet Pigment 23 C-533-839
INDIA: Certain Hot-Rolled Carbon Steel Flat Products C-533-821
INDIA: Commodity Matchbooks C-533-849
INDIA: Forged Steel Fittings C-533-892
INDONESIA: Certain Hot-Rolled Carbon Steel Flat Products C-560-813
TAIWAN: Non-Oriented Electrical Steel C-583-852
THAILAND: Certain Hot-Rolled Carbon Steel Flat Products C-549-818
THE PEOPLE’S REPUBLIC OF CHINA: Aluminum Wire and Cable C-570-096
THE PEOPLE’S REPUBLIC OF CHINA: Crystalline Silicon Photovoltaic Cells, Whether Or Not Assembled Into Modules C-570-980
THE PEOPLE’S REPUBLIC OF CHINA: Melamine C-570-021
THE PEOPLE’S REPUBLIC OF CHINA: Non-Oriented Electrical Steel C-570-997
THE PEOPLE’S REPUBLIC OF CHINA: Multilayered Wood Flooring C-570-971
THE PEOPLE’S REPUBLIC OF CHINA: Refillable Stainless Steel Kegs C-570-094
THE PEOPLE’S REPUBLIC OF CHINA: Vertical Metal File Cabinets C-570-111
TURKEY: Welded Line Pipe C-489-823
Suspension Agreements
MEXICO: Sugar
A-201-845
MEXICO: Sugar
C-201-846
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