A petition filed Sept. 16 could result in the imposition of antidumping and countervailing duties on imports of fresh mushrooms from Canada.
Scope
Subject merchandise includes all fresh mushrooms of the genus Agaricus. They may be referred to as button, chestnut, cremini/crimini, baby bella, portabella/portabello, table, or field mushrooms. Most subject mushrooms sold in the U.S. market are packaged into individual containers and shipped to convenience stores, grocery stores, retail chains, and supermarkets. Larger packages may also be sold to food distributors for use in cafeterias, delis, and restaurants. Ultimate customers typically use these mushrooms in culinary applications, either as an ingredient or in other dishes or as a main course unto themselves, but some of these mushrooms are distributed in bulk or loose form to food processors, which incorporate them into various downstream products.
The petition covers all Agaricus mushrooms, whether or not organic and irrespective of age, cut, color, size, species, packaging, and end-use. Subject mushrooms may be imported in bulk, loose form, or individual containers for retail sale. They may have been cleaned, washed, inspected, subjected to metal detection, sliced, diced, de-stemmed, and/or vacuum cooled prior to importation but otherwise undergo minimal further processing.
Fresh Agaricus mushrooms are currently classifiable under HTSUS subheading 0709.51.0100.
AD/CVD Duty Rates
The petition alleges that subject goods are being sold in the U.S. market at less than normal value at margins of 32.14 and 44.73 percent.
However, importers are typically liable for the payment of AD/CVD duties at the alleged rates only when importing from foreign producers or exporters that fail to cooperate with AD/CVD investigations by the Department of Commerce and International Trade Commission. Lower rates are often assigned to imports from cooperative entities.
The petition also argues that subject goods are being subsidized by the government of Canada but does not assert specific rates.
Next Steps
The DOC and the ITC will consider this petition and quickly launch investigations to determine dumping margins/net subsidy rates and potential injury to the U.S. domestic industry, respectively. Preliminary determinations are due around Oct. 31 for the ITC and Dec. 10 (CVD) and Feb. 23 (AD) for the DOC, although these dates may be extended.
If these preliminary determinations are affirmative, U.S. importers will be required to post AD and/or CVD cash deposits for all entries of subject goods entered on or after the date the DOC determinations are published. However, in certain circumstances duties could be owed three months prior to these dates. In addition, preliminary cash deposit rates can change in the final DOC determinations.
Many important issues affecting coverage, duty rates, and other considerations are argued and decided in the early stages of AD/CVD proceedings before preliminary determinations are issued. Companies that strategically engage in these early stages are thus best positioned to protect their interests and mitigate any potential duty liability. For more information, please contact Sandler, Travis & Rosenberg.
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