A petition filed July 30 could result in the imposition of antidumping and/or countervailing duties on imports of unwrought palladium from the Russian Federation.
Scope
The scope of these investigations is unwrought palladium from Russia. Unwrought palladium is a critical mineral that is primarily used in catalytic converters for automobiles, but it is also used to produce chemical and petroleum catalysts, electronics, dental implements, and jewelry. It is a highly valuable mineral with unique properties that make it capable of reducing emissions in gas- and diesel-powered automobiles, contributing to a cleaner environment.
The merchandise covered by the investigation includes palladium, whether or not refined, in the form of ingots, blocks, lumps, billets, cakes, slabs, pigs, cathodes, anodes, briquettes, cubes, sticks, grains, sponge, pellets, shot, powder, and similar forms. Rolled, forged, drawn or extruded products, tubular products and cast or sintered products which have been machined or processed otherwise than by simple trimming, scalping, or descaling are not covered.
AD/CVD Duty Rates
The petition alleges that subject goods are being sold in the U.S. market at less than normal value, at a margin of 744.49%.
However, importers are typically liable for the payment of AD duties at the alleged rates only when importing from foreign producers or exporters that fail to cooperate with AD 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 Russia but does not assert specific rates.
Next Steps
The Department of Commerce and the International Trade Commission 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 Sept. 15 for the ITC and Oct 23. (CVD) and Jan 6. (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 duty cash deposits for all entries of subject goods entered on or after the date those determinations are published. However, in certain circumstances duties could be owed three months prior to that date. In addition, preliminary cash deposit rates can change in the final DOC determinations.
Many important issues affecting coverage, duty rates, 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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