Coalition Gets Court Order Preventing Partial Revocation of China Diamond Sawblades AD Order for AT&M
The International Trade Administration had planned to partially revoke the antidumping duty order on diamond sawblades from China (A-570-900) for Chinese company Advanced Technology & Materials (AT&M), but the domestic Diamond Sawblades Manufacturers Coalition (DSMC) obtained a temporary restraining order March 6 from the Court of International Trade preventing revocation to the company, according to several court filings, International Trade Administration documents, and AD/CV messages to CBP.
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The ITA announced its intent to revoke March 4 in the final results of a Section 129 proceeding (here) undertaken to implement an adverse World Trade Organization panel ruling. The WTO panel had in June 2012 found against the U.S. on its use of zeroing in the AD investigations of diamond sawblades and frozen warmwater shrimp from China (see 12060830). In its Section 129 final results, AT&M’s AD rate from the investigation fell from 2.82 percent to zero without the use of zeroing. Any company that receives a zero rate in an AD/CV investigation is excluded from the resultant order. Section 129 final results are not implemented until the U.S. Trade Representative directs the ITA to do so, so the partial revocation hasn’t yet taken place.
The diamond sawblades from China investigation at issue in the Section 129 proceeding are also subject to current litigation before CIT, and according to DSMC a favorable ruling by the court would raise AT&M’s AD rate above zero even without the use of zeroing. The final determination from the investigation is on its second court-ordered remand at the ITA (see 12121102).
Immediately following release of the ITA’s Section 129 final results, the DSMC requested a temporary restraining order and preliminary injunction at the Court of International Trade. According to the coalition, partial revocation by the ITA would cause the court to lose jurisdiction over the investigation, and the DSMC would lose all hope of any relief. The coalition said the ITA should give the Chinese company a zero rate, but not partially revoke the order.
For its part, the ITA in its Section 129 final results denied the court would lose jurisdiction if the order is revoked, noting that Section 129 determinations are prospective in nature. If USTR directs implementation, the AD duty order would only be revoked from the date of the USTR letter, not the date of the final determination or order, the agency said.
Without including any explanation, CIT issued a temporary restraining order March 6, preventing the ITA from partially revoking the order for AT&M until the court rules on the DSMC’s motion for a preliminary injunction. The restraining order also prevents lifting of suspension of liquidation on incoming entries of subject merchandise produced and/or exported by the AST&M companies,1 and liquidating entries of subject merchandise from AT&M that are subject to the AD duty investigation and remain unliquidated as of 5:00 p.m. on March 14.
The ITA subsequently ordered CBP to implement the court’s instructions in AD/CV message no. 3071301, dated March 12, available on CBP’s ADDCVD database (here).
1The AT&M companies include: Advanced Technology & Materials Co., Ltd.; Beijing Gang Yan Diamond Products Co.; HXF Saw Co., Ltd.; AT&M International Trade Co., Ltd.; and Cliff International Ltd.
Email ITTNews@warren-news.com for a copy of the DSMC's request for temporary restraining order and preliminary injunction, and/or the court's temporary restraining order.