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Antidumping 101: Minimizing Risk, Maximizing Compliance

Enforcement Against Unfair Trade Practices Takes New Turn

Thursday, April 13, 2017
Sandler, Travis & Rosenberg Trade Report

Commerce Secretary Wilbur Ross announced April 11 an “unprecedented action” as part of the Trump administration’s effort to “take swift action against harmful trade practices from foreign nations attempting to take advantage of our markets, workers, and businesses.”

A Department of Commerce press release states that in the final results of its annual administrative review of the antidumping duty order on oil country tubular goods from Korea the International Trade Administration concluded that domestic Korean prices of the hot-rolled coil used to produce OCTG, as well as Korean electricity prices, are distorted. According to the press release, this was the first time the ITA exercised its new authority under section 504 of the Trade Preferences Extension Act of 2015 to address market distortions in the production of foreign goods and to calculate dumping margins “that more accurately account for the unfair pricing practices of foreign exporters.”

Mark Ludwikowski, who leads Sandler, Travis & Rosenberg’s trade remedies practice, said the ITA’s final determination reversed its earlier decision that there was insufficient evidence of market distortion after direct intervention from the White House on the eve of the final determination. 

In light of this determination the ITA calculated dumping margins of 2.76 percent to 24.92 percent. AD duties based on these rates will be assessed on OCTG from Korea entered during the period of review (July 2014 to August 2015), which was valued at an estimated $1.1 billion (nearly 25 percent of total U.S. imports of OCTG during that period). In addition, AD cash deposits at these rates will be required for new entries of OCTG from Korea for the foreseeable future.

For more information on AD/CV duty enforcement, including strategies to minimize your exposure, please contact Mark Ludwikowski at (202) 730-4967, Kristen Smith at (202) 730-4965, or David Craven at (312) 279-2844.

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