ITA Proposes to Assess High AD NME-Wide Rate for More Firms
In antidumping duty administrative reviews involving nonmarket economy countries (such as China and Vietnam), the International Trade Administration currently instructs CBP to liquidate entries from non-reviewed exporters at the cash-deposit rate used at time of entry. ITA is now proposing to instruct CBP to liquidate some of these entries at the NME-wide rate, which is often quite higher.
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Written comments on this ITA proposal are due by July 11, 2011.
(The ITA made a similar change for market economy AD administrative reviews in 2003. See ITT's Online Archives or 06/02/03 news, 03060245, for BP summary of the ITA's May 2003 "automatic assessment" requirement.)
Would Assess NME-Wide Rate for Non-Reviewed Cos if No Separate Rate
The ITA is proposing to apply this change of practice to nonreviewed merchandise produced in the NME country and exported to the U.S. either directly from the NME country or from a third country reseller, regardless of their location, when they do not file a separate rate application (or separate rate certification)1 in an AD administrative review.
According to ITA sources, this proposed change would ensure that entries are liquidated at the appropriate rate, i.e., the NME-wide rate, for entries from firms without a verified separate rate.
This proposed change of practice would also prevent non-reviewed exporters in NME cases from benefiting from the rates of other exporters.
(ITA source add that if no administrative review occurs, these entries will continue to be liquidated by U.S. Customs and Border Protection at the AD cash deposit rate used at time of entry.)
More Exporters and Importers Would Likely Participate in Reviews
ITA states that this change will also increase the need for interested parties (including exporters and importers of merchandise produced in NME countries) to participate in the ITA’s AD proceedings.
For example, exporters and importers of subject merchandise will need to determine whether to request an administrative review and file a separate-rate application. Through an administrative review, a party can seek a separate cash-deposit rate for its merchandise.
1Without the filing of a separate rate application or certification (if the separate rate was obtained earlier) for an administrative review, sources state that ITA lacks the necessary information on record to determine whether the company is entitled to a separate rate.
(Under NME antidumping duty orders or subsequent proceedings, importers enter subject merchandise produced in an NME country either at a (i) company-specific cash deposit rate, (ii) another separate rate, or (iii) the NME-wide rate.)
(See ITT's Online Archives or 12/16/10 news, 10121635, for BP summary of an ITA proposal to change its de facto goverment control criteria to make it harder for NME exporters to qualify for AD separate rate status.)
(Note that the ITA currently considers the following countries to be NMEs: Armenia, Belarus, Georgia, Kyrgyzstan Republic, Moldova, the People’s Republic of China, the Republic of Azerbaijan, the Socialist Republic of Vietnam, Tajikistan, Turkmenistan, and Uzbekistan.)
ITA contact: Julia Hancock (202) 482-1394
(FR Pub 06/10/11)