India Melamine: Commerce Issues CV Duty Final Determination
The Commerce Department issued its final determination in its countervailing duty investigation on melamine from India (C-533-925). Suspension of liquidation is currently not in effect for entries on or after Nov. 19, 2024, and Commerce will require cash deposits of estimated CV duties on future entries only if it issues a CVD order.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Before Commerce issues a CVD order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due April 1, Commerce said in a fact sheet. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.
Commerce also issued a final determination in its concurrent AD duty investigation on melamine from India, setting AD rates ranging from 513.28% to 632.74% for Indian exporters (see 2502180063). The agency is also set to issue AD/CVD orders on melamine from Trinidad and Tobago, Germany, Qatar, Japan and the Netherlands, after the ITC found injury from imports from those countries in final injury determinations (see 2501080044).
Critical Circumstances for All Chinese Companies, Cash Deposits Still Retroactive 90 Days
Commerce finalized its determination that all Indian companies under investigation increased their exports to the U.S. in the run-up to the preliminary determination, in an attempt to get in as much product as possible before the imposition of CVD. This "critical circumstances" finding by the agency means Commerce will continue to retroactively suspend liquidation for these companies back to 90 days before the preliminary determination, i.e., on or about April 21, 2024.
CV Susp/Cash Deposit Through Nov. 18
For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from April 21, 2024, through Nov. 18, 2024.
CV Liq Reinstated and No CV Cash Deposit as of Nov. 19
Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CVD cash deposits for subject merchandise entered on or after Nov. 19, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation without a CVD order in place.
Suspension of liquidation currently remains in effect for AD purposes.
CV Liq to Be Suspended Again and CV Cash Deposit Required if Order Issued
Commerce will issue a CVD order, reinstate the CVD suspension of liquidation for all Indian exporters, and require a cash deposit of estimated CVD for entries of subject merchandise at the revised CVD rates listed below if the ITC issues a final affirmative injury determination.
| Company | CV Rate | Sus Liq |
|---|---|---|
| Gujarat State Fertilizers and Chemicals Limited | 276.06% | 04/21/24 |
| All Others | 276.06% | 04/21/24 |
(Note that there is no CVD liability, and no CVD will be assessed, on entries during the "gap period" of Nov. 19 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/23 - 12/31/23. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 2407190003 for a summary of the preliminary determination of this investigation.)