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Revised Practice Could Yield Higher AD Duties on NME Country Goods

Monday, October 24, 2011
Sandler, Travis & Rosenberg Trade Report

Higher antidumping duties on some imports from non-market economy countries will likely result from a revised International Trade Administration practice. This refinement will apply to all relevant entries, regardless of when entered, for which the anniversary month for requesting a review of the AD duty order is November 2011 or later.

The ITA states that in administrative reviews of AD duty orders covering merchandise produced in NME countries, importers will sometimes declare in their entry documentation a cash deposit rate associated with a company that has a company-specific rate, as opposed to the NME-wide rate, but the sales underlying the entry are not reported to or reviewed by the ITA in the course of the review. As a result, there may be suspended entries to which the ITA’s final review results do not apply. Previously, in such situations, it was the ITA’s practice to instruct CBP to assess AD duties on such entries at the cash deposit rate in effect at the time of entry.

To prevent non-reviewed exporters in NME cases from benefitting from the rates of other exporters, the ITA is changing this policy. For entries that are not reported in the reviewed company’s U.S. sales databases submitted to the ITA during an administrative review or are otherwise determined not to be covered by the review (i.e., the reviewed exporter claims no shipments), the ITA will instruct CBP to liquidate such entries at the NME-wide rate as opposed to the company-specific rate declared by the importer at the time of entry.

The ITA intends to apply this policy to all non-reviewed entries from exporters selected for individual examination, whether or not the ITA is aware of the involvement of a third party. Additionally, if the ITA determines that an exporter under review had no shipments of the subject merchandise, any suspended entries that entered at that exporter’s rate will be liquidated at the NME-wide rate. The new policy will not apply to entries suspended at the cash deposit rate for exporters for which a review is not initiated or to entries that are suspended at the rate of exporters under review but are not selected for individual examination, except where the ITA has determined that the exporter had no shipments covered by the review.

The ITA has noted that this change will increase the need for interested parties to participate in AD proceedings. For example, exporters and importers of merchandise produced in NME countries will need to determine whether to request an administrative review and file an application requesting a separate cash deposit rate.

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