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ITA Extends Comment Period on a Possible Change to its Duty Drawback Practice in AD Proceedings

The International Trade Administration (ITA) has issued a notice stating that it has decided to extend the comment period regarding its practice with respect to duty drawback adjustments to export price in antidumping (AD) proceedings. The new deadline for comments is August 15, 2005 (rather than July 25, 2005).

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In June 2005, the ITA issued a notice seeking comments on possible changes to its longstanding policy in AD proceedings of granting a duty drawback adjustment to the export price when a respondent establishes that: (1) the import duty paid and the rebate payment are directly linked to, and dependent upon, one another (or the exemption from import duties is linked to exportation); and (2) there were sufficient imports of the imported raw material to account for the drawback received upon the export of the manufactured product.

In this notice the ITA explained that it is considering whether changes to its current practice, including the above-described two-prong test, may be appropriate. The ITA's notice also described various issues that have been raised concerning this practice. For instance, the ITA states that some parties have argued that the ITA's practice should be modified by requiring a respondent party seeking a duty drawback adjustment to demonstrate payment of import duties on raw material inputs used to produce merchandise sold in the home market.

Among other things, the June 2005 notice included an appendix containing certain questions that commenters may address, including possible changes to the current practice.

(See ITT's Online Archives or 07/06/05 news, 05070625, for BP summary of the ITA's June 2005 notice and another notice seeking comments on the calculation of expected non-market economy (NME) wages.)

ITA Contact - John Kalitka (202) 482-2730

ITA Notice Extending Comment Period (FR Pub 08/03/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/E5-4129.pdf