WHAT
YOU SHOULD KNOW ABOUT THE U.S. ANTIDUMPING PROCEDURES
Published
on February 1, 2001
If a U.S. producer feels foreign competitors are charging a
price in their market at less than the cost to produce the item,
and are able sustain the unfair price because they charge more
for the goods in their home market and/or receive financial
assistance from their government to gain market shares in foreign
economies, then producers in the U.S., representing at least
25% of domestic production, can file a petition with the
Import Administration (IA) of the U.S. Department of Commerce
(DOC).
| 20
DAYS |
A
decision is made to accept the petition or not |
| 45
DAYS |
If
the Petition is accepted the International Trade Commission
(ITC) will make a preliminary determination of injury
or threat of the unfairly traded imports. If no indication
of injury the investigation is terminated |
| 190
DAYS |
Both
the ITC and the IA will make affirmative preliminary
determinations after analyzing sales information provided
by foreign producers and exporters |
| 75
DAYS |
After
the preliminary determination, the investigation proceeds
with on-site verification of the data submitted by the
foreign party doing the dumping and /or subsidizing. A
final determination is announced. |
FROM THERE THE IMPORT ADMINISTRATION INSTRUCTS THE U.S.
CUSTOMS SERVICE TO ASSESS DUTIES AGAINST IMPORTS OF THE PRODUCT
INTO THE U.S.
ANNUAL ADMINISTRATIVE REVIEWS on imports to which antidumping
duties apply are carried out by the DOC. Either a single company
or producers as a whole can make requests for a review. If
the cost of production changes relative to the selling price
of the product in the U.S., the duties would then be adjusted,
the amount of duties collected on those entries will then
be revised and a new cash deposit rate for future entries
will be established.
5 YEARS AFTER A DUMPING DETERMINATION HAS BEEN MADE
and duties have been announced against the offending country,
the ITC shall conduct a review, called a "Sunset Review,"
to determine whether revocation of the antidumping duty order
would be likely to lead to a continuation or recurrence of
dumping and of material injury within a reasonably foreseeable
time.
TERMINOLOGY
U.S. Department of Commerce (DOC) -
the "master of antidumping law, responsible for calculating
the level of the antidumping duty.
U.S. International Trade Commission (ITC) - Determines
whether American manufactures have been affected by the dumping.
It is an independent, nonpartisan, quasi-judicial federal
agency, composed of six voting members. Established by Congress
in 1916 as the U.S. Tariff Commission (the Trade Act of 1974
changed its name to the U.S. International Trade Commission),
the agency has broad investigative powers on matters of trade.
It is also a national resource where trade data are gathered,
analyzed, and provided to the President and Congress as part
of the information on which U.S. trade policy is based.
Antidumping Laws - provide that the DOC must impose
an additional duty on imported merchandise that is being sold,
or is likely to be sold in the United States at less than
its fair value, and is therefore causing material injury or
threat to the domestic industry.
Material Injury - harm, which is not inconsequential,
immaterial or unimportant
Cost of Production (COP) - based on the cost of materials,
fabrication, and general expenses, but excluding profit, incurred
in producing such similar merchandise.
Constructed value (CV) - a minimum price level at which
imported goods may be sold without incurring antidumping duties.
The combined cost of materials, fabrications or other processing
of any kind, general expenses and profit, and other incidental
shipping expenses.
Cost of Materials (COM) - encompasses the cost of raw
components in the manufacturing process.
Normal Value (NV) - the price of the merchandise in
the firm's home market or its cost of production.
Dumping Margin - equals the amount by which the foreign
market value exceeds the United States price for the merchandise.
It is the difference between the U.S. price of the allegedly
dumped imports and the NV to which it is being compared.
Calculated by a program that compares the model-specific weighted
average prices. The difference in the two prices is the dumping
margin, which is calculated and applied on a many specific
terms for all firms investigated
Weighted-average of these margins is calculated and applied
as an "all others rate" to firms which were not
investigate. Exporters receive the "all others rate"
until a review is requested for that company during an annual
review process.
Foreign market value (FMV) - the price of the merchandise
in the producer's home market or its export price to countries
other than the U.S., home or export market sales at less than
the cost of production. Commerce determines FMV with reference
to either
1. The price of such similar merchandise sold in the exporting
country or a third country
2. The CV of the imported merchandise.
If the DOC determines FMV by reference to product price, the
stature directs the DOC to exclude from its determination
all sales made below COP. If the DOC determines FMV by reference
to CV, the DOC will base this on the sum of
1. The cost of materials and fabrication
2. and amount for general expenses and profit
3. the cost of all containers and coverings
Sources: Legal and private publications
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