US Trade Law Update: February 2017

This bulletin is courtesy of the Law Offices of Nithya Nagarajan, LLC

U.S. DEPARTMENT OF COMMERCE DECISIONS

Investigations:

  • On January 4, 2017, Commerce determined that counteravailable subsidies are being provided to producers and exporters of certain new pneumatic off-the-road tires from India and Sri Lanka and India.
  • On January 4, 2017, Commerce found in the negative that imports of certain new pneumatic off-the-road tires from India are not being, or are not likely to be, sold in the United States at less than fair value.
  • On January 5, 2017, Commerce determined that counteravailable subsidies are being provided to producers and exporters of certain biaxial integral geogrid products from People’s Republic of China.
  • On January 17, 2017, Commerce determined that counteravailable subsidies are being provided to producers and exporters of ammonium sulfate from the People’s Republic of China.
  • On January 10, 2017, Commerce issued its final affirmative AD and CVD determinations on ammonium sulfate from the People’s Republic of China.
  • On January 18, 2017, Commerce issued its final affirmative determination in the AD and CVD investigations on imports of certain amorphous silica fabric from China.
  • On January 18, 2017, Commerce announced its affirmative final determinations in the AD and CVD investigations of CTL Plate from China
  • On January 23, 2017, Commerce announced its affirmative final determinations in the AD and CVD investigations on truck and bus tires from China.
  • On January 27, 2017, Commerce announced its affirmative preliminary determinations in the AD investigations on finished carbon steel flanges from India, Italy, and Spain
  • On January 27, 2017, Commerce announced its preliminary determination in the AD investigation of DOTP from Korea

Administrative Reviews:

  • On January 6, 2017, Commerce published the final results of the administrative review of the antidumping duty order on magnesia carbon bricks from the People’s Republic of China.
  • On January 6, 2017, Commerce published the preliminary results of the administrative review of the antidumping duty order on certain hot-rolled carbon steel flat products from India.
  • On January 13, 2017, Commerce received requests to conduct administrative reviews of various antidumping and countervailing duty order and findings with November anniversary dates including
    • Monosodium Glutamate from Indonesia;
    • Certain Circular Welded Non-Alloy Steel Pipe from Mexico, Republic of Korea;
    • Steel Concrete Reinforcing Bar from Mexico;
    • Diamond Sawblades and Parts Thereof from China,
    • Fresh Garlic from China,
    • Lightweight Thermal Paper from China
    • Monosodium Glutamate from China,
    • Passenger Vehicle and Light Truck Tires from China,
    • Polyethylene Terephthalate Film and Strip from China,
    • Seamless Refined Copper Pipe and Tube from China,
    • Aluminum Extrusions from China,
    • Certain Magnesia Carbon Bricks from China,
    • Chlorinated Isocyanuates from China, Lightweight Thermal Paper from China;
    • Polyethylene Terephthalate Film, Sheet and Strip, from United Arab Emirates;
    • Steel Concrete Reinforcing Bar from Turkey.
    • Link to Federal Register
  • On January 17, 2017, Commerce published its final results in the 28th administrative and new shipper reviews of the antidumping duty order on tapered roller bearings and parts thereof, finished and unfinished from the People’s Republic of China.
  • On January 17, 2017, Commerce published it Final Results of the administrative review of the antidumping duty order on chlorinated isocyanurates from the People’s Republic of China.

Changed Circumstances Reviews:

  • On January 4, 2017, Commerce initiated a changed circumstances review of, and is preliminarily revoking, in part, the antidumping duty order on certain cold-rolled steel flat products from Japan with respect to certain light gage cold-rolled flat-rolled steel for porcelain enameling meeting the requirements of ASTM A424 Type 1.
  • On January 13, 2017, Commerce published its final results of antidumping and countervailing duty changed circumstances reviews for certain pasta from Italy.
  • On January 17, 2017, Commerce published the final results of changed circumstances review and reinstatement of Shanghai General Bearing Co., Ltd. For tapered roller bearings and parts thereof, finished and unfinished, from the People’s Republic of China.

Sunset Reviews:

  • On January 3, 2017, Commerce automatically initiated the five-year review of the AD/CVD orders for Furfuryl Alcohol from the Peoples Republic of China, and Light-walled Rectangular Welded Carbon Steel Pipe and Tube from Taiwan.
  • On January 5, 2017, Commerce issued final results of its Expedited Fourth Sunset Review of the AD Order on Sulfanilic Acid from India.
  • On January 6, 2017, Commerce issued final results of expedited Sunset Review of the countervailing duty order for Sulfanilic Acid from India.
  • On January 6, 2017, Commerce published the continuation of the AD and CVD Orders on Certain Coated Paper Suitable for High-Quality Print Graphics from Indonesia and China
  • On January 6, 2017, Commerce published the continuation of the AD and CVD orders on Iron Construction Castings from Brazil, Canada, and China.
  • On January 9, 2017, Commerce published the continuation of the AD and CVD Orders on Stainless Steel Plate in Coils from Belgium, South Africa, and Taiwan.
  • On January 30, 2017, Commerce published its final results of Expedited Sunset Review of the AD Order on Artist Canvas from China. Commerce found that revocation of the order would likely lead to the continuation of dumping.
  • On January 30, 2017, Commerce issued the final results of its 2nd Sunset Review of Frozen Warmwater Shrimp from Vietnam and found that revocation would likely lead to the recurrence of dumping.

U.S. INTERNATIONAL TRADE COMMISSION

Section 701/731 Proceedings

Investigations

  • On January 6, 2017, the ITC determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of softwood lumber products from Canada.
  • On January 6, 2017, the ITC determined that imports of carbon and alloy steel cut-to-length plate from Brazil, South Africa, and Turkey materially injured the U.S. Industry by being sold at less than fair value.
  • On January 10, 2017, the ITC determined that imports of large residential washers from China materially injured the U.S. industry by being sold at less than fair value.

Sunset Review Decisions

  • On January 6, 2017, the ITC announced that it will expedite the 5-year Sunset review on Pure Magnesium from China
  • On January 6, 2017, the ITC announced that it will expedite the 5-year Sunset review on Artists Canvas from China
  • On January 10, 2017, ITC determined that revoking the existing antidumping duty order on wooden bedroom furniture from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
  • On January 18, 2017, ITC determined that revoking the existing antidumping duty order on Glycine from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
  • On January 18, 2017, ITC determined that revoking the existing antidumping duty orders on polyester staple fiber from Korea and Taiwan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

Section 337 Proceedings

  • On January 4, 2017, the ITC voted to institute an investigation of certain arrowheads having arcuate blades for hunting.
  • On January 5, 2017, the ITC voted to institute an investigation of SD cards and microSD cards for use in cameras and other electronic devices including components thereof.
  • On January 9, 2017, the ITC voted to institute an investigation of certain liquid crystal eWriters and components thereof. The products at issue in the investigation are liquid crystal displays that can be used as writing tablets and components thereof.
  • On January 18, 2017, the ITC voted to institute an investigation of certain Linear Tape-Open magnetic tape products and tape cartridge components compromising such products including components thereof.
  • On January 18, 2017, the ITC voted to institute an investigation of certain graphics processors, DDR memory controllers, and products containing the same. The products, including GPU’s, processors, systems-on-chip, smartphones, laptops, televisions, Blueray players, and gaming systems, all provide graphics processing functionality.
  • On January 24, 2017, the ITC voted to institute an investigation of certain electronic devices, including mobile phones or smartphones, tablet computers, and components thereof.

Court of International Trade

  • Slip Op 17-02: The key consideration in the case was whether the Commerce may retroactively suspend liquidation after issuing an affirmative scope ruling if liquidation had not been suspended. The court found that Commerce had unlawfully instructed Commerce to suspend liquidation retroactively.

Court of Appeals for the Federal Circuit

  • 2016-1426: The appeal focused on the application of Commerce’s application of its regulations limiting the use of average-to-transaction methodology to non-targeted sales based upon the fact that the original regulation had been withdrawn. The CIT had found that Commerce had violated the APA by withdrawing the regulation without providing notice and thus Commerce must apply the regulation on remand.  It did so and found that no duty was owed.  The CIT and the CAFC affirmed this decision.

Other Trade Matters

  • Robert Lightthizer is likely to be appointed the new U.S. Trade Representative. (Inside US Trade January 6, 2017 – page 1).
  • Representatives of the steel and aluminum industries are committed to increased enforcement of transshipment, misclassification, and trade remedy issues. This will include likely Section 337 cases and other innovative trade remedy actions.  (Inside US Trade January 6, 2017 – page 6).
  • The ITC voted to continue the investigations into softwood lumber products after the new lumber agreement was not accepted by Canadian negotiators. (Inside US Trade January 13, 2017 – page 3-5).
  • Democrat Rhonda Schmidtlein will be the Chair of the U.S. ITC for the next 18 months. Her term will begin in April 2017.  (Inside US Trade January 20, 2017 – page 10)
  • Commerce Secretary Nominee Wilbur Ross expressed strong interest in using the powers of the Department of Commerce to self-initiation antidumping and countervailing duty cases. This provision of the law has rarely been used in the past 20 years.  Ross indicated in questioning that self-initiation would be beneficial to small businesses who could not otherwise afford to bring a petition.  (Inside US Trade January 20, 2017 – page 18).
  • The new Trump administration instructed USTR on January 23, 2017, to take official steps to remove the U.S. from the Trans-Pacifc Partnership. (Inside US Trade January 27, 2017 page 1).

Nithya Nagarajan

Nithya Nagarajan
Law Offices of Nithya Nagarajan, LLC
Tel: +1 202-656-2448 | Cel: +1 301-807-1286
E: nithya@intl-tradelaw.com | W: www.intl-tradelaw.com

Other Trade Matters

  • Chinese steel companies have requested that the ITC dismiss U.S. Steel’s Section 337 case against them for failure to assert an actual injury. U.S. Steel has accused the Chinese government of stealing trade secrets on behalf of the country’s state-run steel industry.
  • The WTO’s appellate body ruled against the United States’ methodology in Korean washer machine antidumping cases. The ruling is significant due to its focus on the Commerce Department’s practice of “zeroing” – or disregarding negative dumping margins – which drive margins up.
  • Another antidumping methodology matter is causing a stir in the trade remedy world as lawyers debate on a proposed shift in the way Commerce deals with determining normal value for products from market economies. The proposal is seen to be in anticipation of China’s potential move to market economy status later this year.
  • A September 14th meeting between Canadian and U.S. officials regarding a deal over softwood lumber did not produce results with less than a month left for negotiation. Canadian Minster of International Trade Chrystia Freeland told reporters that Canada is “prepared to fight” and will continue with litigation over the matter if negotiations do not produce an equitable result for Canadian lumber producers.
  • The Chinese aluminum industry will testify on September 29th before an ITC fact-finding hearing about that nation’s export policies and subsidies. The Section 332 investigation was requested by the House Ways & Means Committee earlier this year and will supplement the already-underway multilateral talks between the two governments on how to address the misclassification of Chinese aluminum to avoid certain duties.
  • The Sweeteners Users Association has inserted itself into the renegotiation of the U.S.-Mexico sugar suspension agreements. The association, which represents end-users of refined sugar, has requested two aspects of the original agreement be changed to lower prices of raw and refined sugar; specifically, those changes are an agreement to support prices used in the 2014 Farm Bill and an increase in the stocks-to-use target ratio.