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EU Retaliation Falls as AD/CV Duty Distributions See Small Drop

Wednesday, February 21, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has released its annual report on activities pursuant to the Continued Dumping and Subsidy Offset Act. Commonly referred to as the Byrd Amendment, the CDSOA allowed the U.S. to distribute antidumping and countervailing duties collected on foreign-made goods to affected domestic industries. The law was found to violate WTO rules and subsequently repealed, but distributions continue for entries of goods made prior to Oct. 1, 2007. In response, the WTO allows each affected country or economy to raise its tariffs on goods imported from the U.S. in direct relation to the amount of AD and/or CV duties on goods from that country or economy that were distributed during the previous year.

Duties Disbursed. A total of $45.7 million in AD/CV duties was disbursed in FY 2017, down slightly from $46.3 million in FY 2016. As a result, the total amount of retaliatory sanctions imposed by U.S. trading partners on U.S. exports should see a small decline.

Uncollected Duties. The amount of AD/CV duties on CDSOA-eligible entries filed prior to Oct. 1, 2007, and liquidated during FY 2017 that went uncollected totaled $20.8 million, up 177 percent from FY 2016. Ironing tables from China accounted for the majority of this amount ($15.2 million), followed by corrosion-resistant carbon steel flat products from Korea ($3.4 million) and fresh garlic from China ($1.7 million).

Duties Remaining in Clearing Account. A total of $19.5 million in AD duties and $1.0 million in CV duties filed with the entry prior to Oct. 1, 2007, on CDSOA-eligible cases remained in the CDSOA clearing account as of Oct. 1, 2017, down from $29.4 million and $1.66 million, respectively, from the previous year. Individual cases with the highest amounts included honey from China ($5.53 million), crawfish tail meat from China ($2.42 million), fresh garlic from China ($1.67 million), petroleum wax candles from China ($1.42 million), and brake rotors from China ($1.22 million).

CBP notes that funds do not transfer from the clearing account to the special account for distribution until liquidation occurs.

EU Retaliation. The European Union has lowered from 4.3 percent to 0.3 percent the retaliatory tariffs it is imposing on women’s and girls’ jeans, sweet corn, crane trucks, and metal spectacle frames from the U.S. in response to continued disbursements under the CDSOA. Affected EU tariff numbers are 6204.62.31, 0710.40.00, 9003.19.30, and 8705.10.00, respectively.

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