Tougher Enforcement of AD/CV Duty Laws Slated Under New Regulations

A regulatory overhaul intended to enhance, improve, and strengthen the enforcement of antidumping and countervailing duty laws could result in higher duties on imported goods.

For more information on these changes and how they may affect your business, please contact attorney Kristen Smith at (202) 730-4965 or via email. 

The International Trade Administration has issued a final rule that, effective April 24, makes a wide range of changes to its regulations on AD/CV proceedings, including the following. The ITA indicates that the final rule reflects a number of changes from its May 2023 proposal.

– AD/CV proceedings may take into account foreign government inactions that lower costs for foreign producers, including weak, ineffective, or non-existent property, intellectual property, human rights, labor, and environmental protections.

– CV duty investigations may include subsidies that a foreign government provides to overseas producers, not just those offered to domestic manufacturers.

– The ITA may consider specified elements in AD duty investigations in determining if a particular market situation exists that likely distorts the cost of production.

– Unpaid or deferred fees, fines, and penalties may be considered countervailable subsidies.