Opportunity to Request DOC AD/CVD Administrative Reviews – Dec. 2021

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 on imports of certain products that trigger investigations conducted by the U.S. Department of Commerce (DOC) and U.S. International Trade Commission (ITC). Most of these cases result the issuance of in AD/CVD orders after the DOC and the ITC complete their investigations and make final determinations on whether a domestic industry has been injured by subject imports (ITC) and to what extent those imports have been dumped or subsidized (DOC).

What surprises many U.S. importers about AD/CVD investigations is that the dumping and subsidy rates calculated during these investigations are only deposit rates, with the final assessment of the AD/CVD duties sometimes made up to 2-3 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 the DOC calculates in an administrative review an AD/CVD margin 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 are often blind-sided several years later when they get another bill from CBP for 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 the 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 be due 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 should understand how those duties are calculated and assessed so that they can make an informed decision about 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, at the end of January or in early February the 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