ITA Determines Not to Deduct Section 201 Duties from the U.S. Price in Calculating AD Duty Rates
The International Trade Administration (ITA) has issued a fact sheet stating that it has determined that U.S. antidumping law (19 USC 1677a(c)(2)(A)) does not intend Section 201 duties to be deducted from the U.S. price1 in calculating AD margins (rates).
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Although this AD law requires the deduction of ordinary U.S. customs duties as well as certain additional costs, charges or expenses (e.g. selling expenses) from the U.S. price, the ITA states that it does not believe that Section 201 duties are ordinary U.S. customs duties or selling expenses, as they are imposed only under special circumstances for the express purpose of providing relief from serious injury due to increased imports.
Moreover, the ITA states that deducting Section 201 duties from the U.S. price in calculating dumping margins would effectively increase the safeguard remedy; in some cases, providing a double remedy. The ITA further states that it would create a situation where fairly traded imports could become liable for AD duties simply due to the imposition of Section 201 duties.
The ITA states that this issue was raised in several cases, including an AD duty final results of administrative review on stainless steel wire rod from South Korea, where the ITA's determination on this issue is discussed in-depth. (See ITT's Online Archives or 04/15/04 news, 04041555 for BP summary of these final results.)
1 According to ITA sources, the U.S. price refers to the export price (EP) or the constructed export price (CEP), which are defined in 19 USC 1677a(a) and (b).
(See ITT's Online Archives or 09/11/03 news, 03091120 for BP summary of the ITA's request for comments on this issue and on the treatment of CV duties in AD proceedings, which is still pending. See ITT's Online Archives or 12/10/03 news, 03121010 for BP summary on the termination of Section 201 duties on steel.)
ITA Fact Sheet (dated 04/06/04), available at http://www.ita.doc.gov/media/FactSheet/0404/calculations_040604.html
ITA Final Results on Wire Rod from South Korea (FR Pub 04/12/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-8245.pdf