anti-dumping & countervailing duties - advanced topics · what is dumping? v dumping occurs...
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G E O R G E R . T U T T L E G E O R G E R . T U T T L E L AW O F F I C E S L A R K S P U R , C A L I F O R N I A 9 4 9 3 9 P H O N E ( 4 1 5 ) 9 8 6 - 8 7 8 0 FA X ( 4 1 5 ) 9 8 6 - 0 9 0 8 E M A I L : G E O @ T U T T L E L AW. C O M W E B : W W W. T U T T L E L AW. C O M
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.
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h^p://enforcement.trade.gov/stats/iastats1.html
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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.
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General Timeline For InvesBgaBons
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General Timeline For InvesBgaBons
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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.”
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Sample Ad Valorem Margin CalculaBon
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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.
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What is a Subsidy?
v Foreigngovernmentssubsidizeindustrieswhentheyprovide:§ financialassistancetobenefittheproducVon,manufactureorexportaVonofgoods.
v Subsidiescantakemanyforms,suchas:§ directcashpayments,creditsagainsttaxes,and
§ loansattermsthatdonotreflectmarketcondiVons
v Inmostcases,thedomesVcindustryissufferingmaterialinjuryasaresultofimportsofthesubsidizedproducts.
v Theamountofsubsidiestheforeignproducerreceivesfromthegovernmentisthebasisforthesubsidyratebywhichthesubsidyisoffset,or"countervailed,"throughhigherimportduVes.
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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)
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SSuussppeennssiioonn ooff LLiiqquuiiddaaBBoonn v OnceaninvesVgaVoniscommencedandanaffirmaVvepreliminarydeterminaVonbyCommerce
ismade,CBPisinstructedtowithholdliquidaVononentriesofthesubjectmerchandiseandtocollectAD/CVDduVes(cashdeposits)
v IftheentryinquesVonisaType03entryandsubjecttoAD/CVDduVes,thensuspensionofliquidaVonoccurs.
v SuspensionofliquidaVonremainsineffectunVltheunderlyingAD/CVDissueisresolvedandaffirmaVvefinaldeterminaVonisissued.
v CommercethenissuesinstrucVonstoCBPtolinthesuspensionandliquidatetheentries.
v SuspensionofliquidaVoncanremainineffectwhilecaseisunderjudicialreview.
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Determining the Scope of the Order v PeVVoniniVallydeterminesthescopeoftheproductsthatarethesubjectoftheinvesVgaVono peVVonerisrequiredtoincludeadetaileddescripVonofthemerchandise
o includesthephysicalandtechnicalcharacterisVcsandusesofthemerchandiseanditscurrentHTSUSclassificaVonnumber.
v InterestedparVesareabletoraiseissuesregardingscopewithinthe20daysofthenoVceofiniVaVon.
v CommerceisresponsiblefordescribingthegoodsubjecttotheinvesVgaVon/orders,and
v interpreVngtheADandCVDordersanddeterminingwhetherproductsfallwithinthescopeoftheorder
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Cash Deposits vs. Assessments
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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)
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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
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Annual AdministraBve Reviews
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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
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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.
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CBP Website: adcvd.cbp.dhs.gov
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h^p://www.cbp.gov/document/guidance/adcvd-cases-and-messages
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h^p://www.cbp.gov/document/guidance/adcvd-cases-and-messages
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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.
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Thank You! Any Questions? GeorgeR.Tu5le,IIIA^orney,Tu^leLawPhone:(415)986-8780
Email:geo@tu^lelaw.comwww.tu^lelaw.com
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