US Trade Law Update: November 2016

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

U.S. DEPARTMENT OF COMMERCE DECISIONS

Investigations:

  • On October 3, 2016, the antidumping duty orders on Certain Hot-Rolled Steel Flat Products from Australia, Brazil, Japan, the Republic of Korea, the Netherlands, the Republic of Turkey, and the United Kingdom were published.
  • On October 6, 2016, Commerce announced its preliminary determination in the AD investigation on imports of phosphor copper from the Republic of Korea
  • On October 7, 2016, Commerce published its preliminary determination in the AD investigation on R134a from China
  • On October 24, 2016, Commerce announced its affirmative final determinations in the AD & CVD investigations on imports of certain iron mechanical transfer drive components from Canada and China
  • On October 24, 2016, Commerce announced its affirmative final determinations in the AD & CVD investigations of imports of circular welded carbon quality steel pipe from Oman, Pakistan, the UAE, and Vietnam.
  • On October 25, 2016, Commerce announced its affirmative preliminary determination in the CVD investigation of imports of ammonium sulfate from China
  • On October 26, 2016, Commerce announced its affirmative preliminary determination in the AD investigation of imports of ferrovanadium from Korea
  • On October 28, 2016, Commerce announced its affirmative preliminary determination in the AD investigation on HEDP from China

New Petitions:

  • On October 12, 2016, Commerce announced the initiation of the antidumping duty investigations on imports of steel concrete reinforcing bars from Japan, Taiwan, and Turkey and the countervailing duty investigation on imports from Turkey

Administrative Reviews:

  • On October 14, 2016, Commerce published its initiation of administrative reviews for orders with August anniversary dates.
  • On October 17, 2016, Commerce published the amended final results of its antidumping administrative review of Small Diameter Graphite Electrodes from China for the period 2/1/14 to 1/31/15.
  • On October 17, 2016, Commerce published the final results of antidumping duty administrative review of Certain Steel Nails from the UAE for the period 5/1/14 to 4/30/15
  • On October 19, 2016, Commerce published its final results of antidumping duty administrative review of Narrow Woven Ribbons from China for the period 9/1/14 to 8/31/15
  • On October 20, 2016, Commerce published its final results of antidumping duty administrative review of Glycine from China for the period 3/1/14 to 2/28/15
  • On October 27, 2016, Commerce published its final results of new shipper review for Wah Yuen Stationery Co. Ltd. in the antidumping duty order on Certain Cased Pencils from China
  • On October 31, 2016, Commerce published the final results of antidumping duty administrative review of Polyethylene Retail Carrier Bags from Malaysia for the period 8/1/14 to 7/31/15.

Sunset Reviews:

  • On September 8, 2016, Commerce found, in an expedited sunset review, that revoking the antidumping order on certain hot-rolled flat-rolled carbon-quality steel products from Russia would result in a continuation of dumping.
  • On September 22, 2016, Commerce found that revoking the antidumping orders on narrow woven ribbons with woven selvedge from China and Taiwan as well as the countervailing duty order on the same product from China would result in a continuation of dumping.

Suspension Agreements:

  • On October 26, 2016, Commerce published its notice that it will continue to suspend the antidumping duty investigation on lemon juice from Argentina

Sunset Reviews

  • On October 3, 2016, Commerce initiated 5-Year Sunset Reviews on Artist Canvas from China and Pure Magnesium from China
  • On October 6, 2016, Commerce found that revocation of the antidumping duty order on certain paper clips from China would likely lead to continuation or recurrence of dumping.
  • On October 6, 2016, Commerce found that revocation of the antidumping duty order on certain cased pencils from China would likely lead to the continuation or recurrence of dumping.
  • On October 20, 2016, Commerce announced that as a result of the affirmative determinations by both Commerce and the ITC that it would continue the antidumping duty order on Hot-Rolled Flat-Rolled Carbon Quality Steel Products from the Russian Federation for 5 more years.

Sunset Reviews Scheduled for Initiation:

  • On October 7, 2016, Commerce announced that the following antidumping and countervailing duty orders are scheduled for initiation of 5-year sunset reviews in November 2016:
    • Helical Spring Lock Washers from China and Taiwan (4th Review)
    • Multilayered Wood Flooring from China (1st Review)
    • Gray Portland Cement and Clinker from Japan (4th Review)
    • Welded Stainless Steel Pipe from Korea and Taiwan (4th Review)
    • Solid Urea from Russia and Ukraine (4th Review)
    • Link to Federal Register

 

U.S. CUSTOMS AND BORDER PROTECTION

  • CBP announced that it will continue its outreach program on AD/CVD issues with U.S. manufacturers in order to enforce the AD order on artist canvas from China
  • The GAO published its report which estimated that $2.3 billion in antidumping and countervailing duties owed to the U.S. Government were uncollected as of mid-May 2015.
  • CBP announced that effective July 23, 2016, parties are required to submit electronic entries and entry summaries for additional entry types of the ACE system including AD/CVD entry types.
  • Links to the announcements can be found here.

U.S. INTERNATIONAL TRADE COMMISSION

Section 701/731 Proceedings

Investigations

  • On October 25, 2016, the ITC determined that the U.S. industry is materially injured by reason of imports of welded stainless steel pressure pipe from India.

Sunset Review Initiations

  • On October 4, 2016, the ITC announced that it would conduct a full 5-Year sunset review of the AD & CVD orders on stainless steel sheet and strip from Japan, Korea, and Taiwan
  • On October 25, 2016, the ITC scheduled the expedited sunset review of the antidumping duty order on heavy forged hand tools from China.
  • Link to Notice
  • On October 25, 2016, the ITC scheduled the expedited sunset reviews of the CVD order on stainless steel plate from South Africa and the AD orders on stainless steel plate from Belgium, South Africa, Taiwan.

Sunset Review Decisions

  • On October 26, 2016, the Commission ruled that revocation of the existing antidumping duty orders on chlorinated isocyanurates from China and Spain would likely lead to the continuation or recurrence of material injury within a reasonably foreseeable time.

Section 337 Proceedings

  • During the month of October, the ITC voted to institute Section 337 investigations and proceedings against the following products:

US COURT OF INTERNATIONAL TRADE

  • Slip Op 16-91: The CIT denied a challenge to the AD and CVD Suspension Agreements on Sugar from Mexico on the basis that the ITC properly found that the agreements with quantitative restrictions and reference prices effectively work in concert to eliminate adverse price effects for the industry.
  • Slip Op 16-96: The CIT affirmed the remand decision by Commerce to extend the deadline for a responding company to withdraw its request for review.  The key issue in the case was whether or not it was reasonable for a respondent to request an extension of the deadline to withdraw its request for review pursuant to 19 C.F.R. §351.213(d)(1) based upon the fact that it was necessary to know the results of the ongoing administrative review.

COURT OF APPEALS FOR THE FEDERAL CIRCUIT

  • Opinion 15-1864: On October 6, 2016, the CAFC affirmed Commerce’s final results of review of the antidumping duty order on pure magnesium from China. The issues in the case centered on the valuation of certain key inputs.

OTHER TRADE MATTERS

  • At a September 26th meeting of the WTO’s DSB, the U.S.pushed back on a ruling against the use of “zeroing” in cases of targeted dumping. The United States claims that the ruling ignores an important sentence in Article 2.4.2 of the AD Agreement and thus violates Article 31 of the Vienna Convention.
  • In comments submitted to USTR before its annual report to Congress on Chinese WTO compliance, the U.S steel industry called for a stronger approach by the administration. The AISI requested more WTO action, stronger enforcement of current AD & CVD duties, and more bilateral talks with Chinese authorities in order to curb what they claim are practices that have led to a global steel glut, lost revenue, and plant closings in the U.S.
  • China preliminarily determined that distillers’ dried grains from the U.S. are being unfairly subsidized at the expense of the domestic Chinese industry. Importers of U.S. DDGS products will have to pay 10-10.7 {bfa08a400c7550404055ff04715e84c9172815d33c25eb3b84e230636ecdc007} to Chinese customs officials as a result of the decision.
  • The chairman of the European Parliament’s International Trade Committee, warned that there might not be enough time to pass legislation regarding China’s market economy status ahead of the WTO’s accession protocol deadline of December 1st. It urged the EU Trade Commissioner to present a proposal aligned with the non-binding resolution passed in May 2016 stipulating that the EC continue to treat China as a NME until it meets the EU’s criteria for such a classification.  In response, the EC outlined plans to continue using third party data for AD cases while simultaneously no longer labeling China as a non-market economy.
  • S. Senator Dan Coats called for the collection of back-tariffs after the GAO found the United States had failed to collect $2.3 billion from AD & CVD duties on imports such as steel.
  • Link to article
  • USTR will meet Canadian Trade Minister and Canadian industry groups in Toronto in an attempt to end gridlock in a softwood lumber dispute that has been simmering for decades. The U.S. could seek tariffs that top 30 percent against Canadian producers. The duties could prompt Canadian companies to curtail output or shut down mills.
  • Link to article

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.