ITA Seeks Comments on Proposed Modification of Duty Drawback Calculation in AD Proceedings
The International Trade Administration (ITA) has issued a notice requesting comments on its proposed approach concerning the calculation of duty drawback adjustments to export price in antidumping (AD) proceedings.
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ITA Proposes Allocating Drawback Over All Exports Incorporating a Duty-Paid Input - Regardless of Destination
Specifically, the ITA is proposing to allocate the total amount of duty drawback received by a foreign producer across all exports that may have incorporated the duty-paid input in question, regardless of destination, in situations where the producer receives duty drawback on certain exports containing the input, but not on other exports containing the input.
The ITA is also proposing to continue to permit full adjustment for duty drawback received should the foreign producer claiming such adjustment demonstrate that it can directly trace the particular imported duty-paid inputs through the subsequent production process and into particular finished goods that are exported to the U.S.
According to commenters that responded to the ITA's previous notices on this issue, such an approach would ensure that the adjustment claimed on U.S. sales is not overstated. In addition, commenters stated that this approach would reasonably avoid excessive claims for drawback adjustments in AD calculations.
(Under current practice, the ITA states that it applies a two-prong test to determine entitlement to a duty drawback adjustment in which the claimant must establish 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 exports of the manufactured product.)
Written Comments Due by November 17th
The ITA states that the deadline for the submission of comments on this issue is November 17, 2006.
(See ITT's Online Archives or 07/06/05 news, 05070625, for earlier BP summary of ITA notice requesting comments on this issue. See ITT' s Online Archives or 08/04/05 news, 05080440, for BP summary of extension of comment deadline.)
-comments due by November 17, 2006.
ITA Contact - John Kalitka (202) 482-2730
ITA Notice (FR Pub 10/19/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-17376.pdf