ITA Issues Draft Results of 'Zeroing' Section 129 Proceedings for 12 EC AD Investigations (Could Result in New Rates/Revocations)
The International Trade Administration has issued a notice initiating Section 129 proceedingsin order to implement a World Trade Organization (WTO) panel report finding that the ITA's use of "zeroing" in average-to-average comparison antidumping (AD) investigations in 12 European Community AD investigations is inconsistent with U.S. obligations under the WTO Agreements.
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The ITA has also posted to its Web site the draft results of these Section 129 proceedings - draft recalculated AD rates for these 12 EC investigations.
(See ITT's Online Archives or 01/08/07 and 01/29/07 news, 07010825 and 07012930, for BP summaries of the end of the ITA's use of "zeroing" in average-to-average AD duty investigations effective February 22, 2007.)
Draft Recalculated Rates Not in Effect, Case Briefs Due from Interested Parties
These draft recalculated AD rates are not in effect. According to the ITA, a determination made under section 129 applies to unliquidated entries of the subject merchandise with a time of entry on or after the date on which the U.S. Trade Representative (USTR) directs the ITA to implement the determination.
The ITA states that interested parties may submit case briefs no later than two weeks after the February 26, 2007 issuance of the draft results. Rebuttal briefs may be filed no later than five days after the deadline for case briefs. Interested parties may request a hearing on the issues raised in the case and rebuttal briefs no later than five days after the deadline for the case briefs.
DraftRecalculated Rates for 12 EC AD Investigations
The ITA has posted draft recalculated AD rates (along with the current AD rates) for the 12 EC AD investigations, as follows:
| 15.45% |
1The ITA states that since this company is the sole respondent, if this rate remains at zero or de minimis for the final recalculation, the order will be revoked for subject merchandise.
2The ITA states that if the rate for this company remains at zero or de minimis for the final recalculation, the order will be revoked for this company.
3The ITA states that since there are no non-adverse facts available above de minimis rates remaining, pursuant to ITA practice, the all others rate is based on a simple average of the zero rates and the adverse facts available (AFA) rates.
The ITA notes that for any company whose rate was based on total AFA, the rates has not been changed in this draft.
ITA Has Already Revoked 3 Other AD Duty Orders Challenged by the EC
The ITA states that it has previously revoked the AD duty orders associated with three other investigations challenged by the EC: (1) Certain Cut-to-Length Carbon-Quality Steel Plate from France (A-427-816), (2) Certain Stainless Steel Sheet and Strip in Coils from France (A-427-814), and (3) Certain Stainless Steel Sheet and Strip in Coils from the United Kingdom (A-412-818). (See ITT's Online Archives or 12/08/05 and 08/08/05 news, 05120830 and 05080835, for BP summaries of these revocations, respectively.)
(The ITA has previously stated that in October 2005, a WTO dispute settlement panel found, among other things, that the ITA's use of "zeroing" in average-to-average comparison AD investigations (without providing offsets for non-dumped comparisons) challenged by the EC was inconsistent with Article 2.4.2 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (Antidumping Agreement). The ITA noted that the U.S. did not appeal this aspect of the panel's report.)
Section 129 of the Uruguay Round Agreements Act (URAA) provides the basic legal provisions through which the U.S. would make and implement new AD or countervailing (CV) duty determinations consistent with an adverse WTO report.
(See ITT's Online Archives or 02/01/07 news, 07020125, for BP summary of another WTO finding that the U.S. use of "zeroing" is also impermissible in other AD investigations, administrative reviews, new shipper reviews, etc. There has not yet been a recommendation made by the WTO or any implementation by the ITA in this case.)
ITA contact - Daniel O'Brien (202) 482-1376
ITA notice (FR Pub 03/01/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-3510.pdf
ITA memorandum containing preliminary recalculations (dated 02/26/07) available at http://ia.ita.doc.gov/download/zeroing/20070222-Zeroing-Prelim-Decision-Memo.pdf
ITA fact sheet on current "zeroing" litigation available at http://ia.ita.doc.gov/download/factsheets/factsheet-zeroing-final-022207.pdf