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U.S. ANTIDUMPING And COUNTERVAILING DUTY REVIEW INVESTIGATIONS

U.S. ANTIDUMPING And COUNTERVAILING DUTY REVIEW INVESTIGATIONS. WILLIAM E. PERRY Partner Dorsey & Whitney LLP Author—www.uschinatradewar.com. Review Investigations. Review Investigations—Antidumping and Countervailing Duty Orders Issued December 2011

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U.S. ANTIDUMPING And COUNTERVAILING DUTY REVIEW INVESTIGATIONS

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  1. U.S. ANTIDUMPING And COUNTERVAILING DUTY REVIEW INVESTIGATIONS WILLIAM E. PERRYPartnerDorsey & Whitney LLPAuthor—www.uschinatradewar.com

  2. Review Investigations • Review Investigations—Antidumping and Countervailing Duty Orders Issued December 2011 • December 2012 and Every December Chance to Request Review Investigation • Real liability of US importers—Commerce calculates actual AD and CVD duties and determines how much importers owe • Retroactive Liability– from December 7, 2011

  3. Problems for Importers • Importers pay the Duties. Importers have to know what their Chinese suppliers are doing. • Retroactive liability means rates go up importer owes the difference plus interest, rates go down importer gets back the difference plus interest • Problem in Wood Flooring Case is Rates are Low—Generally 3.3% AD and 1.5% CVD • CVD case only Problem for Mandatories • AD case is the problem. If Chinese company decides not to participate in review investigation, importers owe substantial additional duties. Rate goes from 3.3% to 58.84% • Steel Nails—Provisional Duties, Retroactive Liability • Chinese companies get tired of paying legal fees and often give up on the review.

  4. Chinese Suppliers Must Participate AD Case • Importers need to know that their Chinese suppliers are participating in the AD review • AD review—Chinese suppliers still need to get separate rate • Chinese Suppliers Need to File Either Separate Rate Application or Certification • Separate Rate Certification or Application Must Be Filed within 60 days or by March 31, 2013. • Certification are Simpler, but still complicated • Foreign resellers also must submit either a certification or application

  5. Separate Rate Application or Certification • “In addition, companies that received a separate rate in a completed segment of the proceeding that have subsequently made changes, including, but not limited to, changes to corporate structure, acquisitions of new companies or facilities, or changes to their official company name, should timely file a Separate Rate Application to demonstrate eligibility for a separate rate in this proceeding.” • Has your Chinese Supplier made any changes to its corporate structure, acquired new companies or facilities or changed its official company name?  If so, it has to file a separate rates application.  • If there have been any changes, talk to a lawyer.

  6. How Can AD Rates Change? • Surrogate Countries—Indonesia or Philippines • Wooden Bedroom Furniture—Star 16 to 216%

  7. Separate Rate Certification Easier • Copies of the Separate Rates Application and the Certification Attached • AD and CVD orders stay in place 5-30 years • No Reimbursement of Dumping or Countervailing Duties • Dumping Margin or CVD rate Determined in Review Will be cash deposit for subsequent Review period.

  8. Need a Lawyer • Need a lawyer—No Chinese company or importer has ever been able to win an AD or CVD case without a lawyer. • Filing Requirements so difficult. Chinese companies screw up and they lose the case and you the importer owe the money • Note the Chinese companies that were denied separate rates in the initial investigation. Many tried to do it themselves.

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