AD/CVD investigations nationwide climb 52 percent from 2016

U.S. Anti-Dumping and Countervailing Duty (AD/CVD) investigations are typically prompted by a company or industry group filing a petition alleging harm from imports, but recent news on Chinese exports shows that does not have to be the case.

In late November, the U.S. Commerce Department took the extraordinary step of self-initiating an AD/CVD investigation, looking at Chinese imports of common alloy aluminum sheet.

The last time U.S. Commerce self-initiated a CVD investigation was in 1991 for softwood lumber from Canada, while the last self-initiated AD inquiry was in 1985 with semiconductors from Japan.

Enforcement of U.S. trade law has been a priority of the White House administration. From Jan. 20 through Oct. 19, 2017, the commerce agency has initiated 73 AD and CVD investigations--a 52 percent increase from 2016.

The newer initiatives by U.S. Customs & Border Protection (CBP) of enhanced AD/CVD enforcement policies are having a strong impact on U.S. importer operations. The Trade Facilitation and Trade Enforcement Act, signed into law in 2016, created a new AD/CVD enforcement body within CBP and include new investigatory powers to demand information from foreign suppliers suspected of violating or evading AD/CVD orders. 

Recent news about AD/CVD investigations includes not only specific aluminum products but softwood lumber, biodiesel and resins.

Aluminum sheet

The new self-initiated AD/CVD investigations into Chinese alloy aluminum sheeting is based on concerns that the product is being sold, or “dumped,” in the U.S. market at less than fair market value, and receives CVD subsidies from the Chinese government.

U.S. commerce officials estimate that Chinese alloy aluminum imports totaled $603.6 million in 2016.
   
Softwood lumber

In the past, the U.S. has imposed AD/CVD tariffs on Canadian softwood lumber. In November, Canada formally requested a World Trade Organization (WTO) consultation with the U.S. following the latter’s decision to impose AD/CVD duties on imports of Canadian softwood lumber products.

Earlier in the month, the commerce agency determined that Canadian exporters have sold softwood lumber in the U.S. at nearly 3 percent to 9 percent less than fair value. It announced that Canada is providing unfair subsidies to its producers at rates of up to nearly 18 percent.

Biodiesel

Earlier this month, the U.S. International Trade Commission (ITC) voted that the nation’s biodisesel industry has been affected by lower-value biodiesel imports from Argentina and Indonesia. As a result, commerce officials will issue CVD orders on imports of biodiesel from Argentina and Indonesia. A previous report from the agency showed that biodiesel imports from both countries are sold in the U.S. below fair value.

Polytetrafluoroethylene resin

In October, U.S. Commerce initiated new AD investigations into whether polytetrafluoroethylene (PTFE) resin imports from China and India are being dumped in the U.S. and a CVD investigation to determine whether producers of PTFE resin in India are receiving unfair subsidies.

In 2016, imports of PTFE resin from China and India were valued at an estimated $24.6 million and $14.3 million, respectively.

Finding solutions

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Integration Point recently sponsored a webcast entitled “Preparing for Increased Anti-Dumping/Countervailing Duty Enforcement in the U.S.” Click Here to access the presentation.

Additional source: American Shipper