Non-Market Economy, Other Changes Made to AD/CV Regulations

The International Trade Administration has issued a final rule that, effective Jan. 15, 2025, will make dozens of changes to the regulations on antidumping and countervailing duty proceedings, including with respect to the collection of cash deposits, the application of AD duty rates in non-market economy proceedings, the calculation of “all others” rates, the selection of examined respondents, and the attribution of subsidies.

This rule could result in higher AD/CV duties on goods imported from China and other NMEs. For more information, please contact William Marshall at (212) 549-0138 or via email.

The ITA states that this rule reflects a number of changes from its July 2024 proposed rule and covers a wide range of issues, including the following.

– the sharing of business proprietary information with U.S. Customs and Border Protection officials involved in negligence, gross negligence, or fraud investigations

– situations in which the ITA applies cash deposit rates in a producer/exporter combination and the process by which such a combination may be excluded from provisional measures and an AD/CV duty order

– separate rates for entities located in an NME that are and are not majority-owned by the government

– methodologies for selecting respondents in investigations and administrative reviews, including allowing for a single countrywide subsidy rate and clarifying that an NME entity rate is not the same thing as an all-others rate

– the criteria the ITA will normally consider in selecting an amount of profit normally realized by exporters or producers in connection with the sale of same or similar merchandise in determining constructed value

– the ITA’s selection of economically comparable countries as part of its NME methodology, including the consideration of factors like the size and composition of export activity in certain countries and the availability, accessibility, and quality of data from those countries

– export subsidies that exempt, remit, or defer indirect taxes and import charges on capital goods and equipment