INTERNATIONAL TRADE SEMINAR: ANTI-GLOBALIZATION SCENARIOS AND WTO RESTRICTIONS TO INDUSTRIAL POLICIES

Transcription

1 INTERNATIONAL TRADE SEMINAR: ANTI-GLOBALIZATION SCENARIOS AND WTO RESTRICTIONS TO INDUSTRIAL POLICIES Chunlian (Lian) Yang, International Trade & Regulatory

2 EXPORTING TO THE UNITED STATES 2

3 Agenda I. Overview of U.S. Antidumping (AD) and Countervailing Duty (CVD) proceedings II. Options after imposition of AD/CVD

4 I. OVERVIEW OF US TRADE REMEDY PROCEEDINGS 4

5 Overview of Trade Remedies AD and CVD Proceedings Designed to protect against injurious unfair trade Imposition of additional duties to offset unfair pricing or subsidization Safeguard Actions Designed to provide breathing room to industries threatened by surges in imports Relief is global in nature Example: Steel in 2001; solar cells and panels (request filed on 4/26/2017) 5

6 U.S. Cases Against Brazil -- Existing Orders Order date Continued date ITC case No. DOC case No. Product 05/09/ /06/ A Heavy Iron Construction Castings 05/15/ /06/ C Heavy Iron Construction Castings 11/02/ /17/ A Circular Welded Non-Alloy Steel Pipe 02/21/ /09/ A Stainless Steel Bar 10/22/ /03/ C Carbon Steel Wire Rod 10/29/ /03/ A Carbon Steel Wire Rod 01/28/ /23/ A Prestressed Concrete Steel Wire Strand 12/17/ /23/ A Carbon Steel Butt-Weld Pipe Fittings 02/01/ /29/ A Frozen Warm-Water Shrimp and Prawns 03/05/ A Uncoated Paper 09/20/ A Cold-Rolled Steel Flat Products 09/20/ C Cold-Rolled Steel Flat Products 10/03/ A Hot-Rolled Carbon Steel Flat Products 10/03/ C Hot-Rolled Carbon Steel Flat Products 01/26/ A Carbon and Alloy Steel Cut-to-Length Plate 6

7 U.S. Cases Against Brazil -- Ongoing Investigations Initiation date ITC case No. DOC case No. Product 07/21/ A Emulsion Styrene-Butadiene Rubber 03/08/ C Silicon Metal 03/08/ A Silicon Metal 7

8 Antidumping Duties Foreign manufacturer or exporter is selling in the U.S. at less than fair value and causing material injury or threat thereof to the domestic industry. Need BOTH to impose AD Normal value is typically home market price but for NME is constructed using third country values Antidumping duties designed to counter the injurious impact of the unfair prices by raising the cost to the consumer. 8

9 Countervailing Duties Foreign manufacturer or exporter is being improperly subsidized and its imports are causing material injury or threat thereof to the domestic industry. Need BOTH to impose CVD Imposition of CVD to offset subsidies Double remedies issue (simultaneous imposition of AD and CVD against NME countries) Pass-through of subsidies on inputs 9

10 Agencies & Responsibilities DOC U.S. Department of Commerce (DOC) conducts investigations to determine the extent of dumping or unfair subsidization two separate proceedings for AD & CVD. Administrative reviews Sunset reviews every 5 years 10

11 Steps of AD/CVD Investigations at DOC Initiation Scope Selection of mandatory respondents Questionnaire response Preliminary Determination Determine the dumping margins Determine countervailability of subsidy programs and calculate subsidy margin Affirmative -- suspension of liquidation; cash deposits required for importation Critical circumstances (90-day retroactive application of duties) Verification Final Determination

12 Agencies & Responsibilities ITC U.S. International Trade Commission (ITC) decides material injury or threat thereof Independent U.S Agency with 6 Commissioners A case would terminate if the ITC makes a negative preliminary or final determination. Sunset reviews every 5 years 12

13 Steps of Injury Investigations at ITC Preliminary phase Questionnaires for producers and importers Staff conference Brief ITC votes Final phase Begins after DOC issues an affirmative preliminary determination Questionnaires for producers, importers and purchasers Hearing before Commissioners Pre-hearing and post-hearing briefs ITC votes ITC also considers critical circumstances from injury perspective; decision generally negative so ultimately no retroactive duty applications in nearly all AD/CVD cases.

14 Typical AD Case Schedule 14

15 Typical CVD Case Schedule Similar stages as in AD cases One ITC schedule Different timeframe at DOC: DOC CVD prelim: 65 days after initiation; typically extended to 130 days after initiation DOC CVD final: 75 days after prelim determination; typically extended and aligned with AD final determination

16 II. OPTIONS FOR EXPORTERS AFTER IMPOSITION OF AD/CVD 16

17 Administrative Review U.S. retrospective process (risks and opportunities) Eligibility for a review Commercial shipment during the POR Challenges: high cash deposit rate Petitioner, exporter, or importer can request review Review request must be made by the end of the anniversary month of the order 17

18 Administrative Review cont d Process Interested party requests review DOC initiates review DOC selects mandatory respondents Mandatory respondents respond to questionnaires Preliminary results Final results Typically no verification in the 1 st and 2 nd review; a verification, if any, takes place before the preliminary result. 18

19 New Shipper Review Benefit: a new shipper obtains its own AD or CVD rate on an expedited basis Eligibility: an exporter or producer that did not export, and is not affiliated with an exporter or producer that did export, to the United States during the POI. Process Request review DOC determines eligibility (bona fide sales during the POR) DOC initiates review Questionnaire response DOC preliminary result ( days after initiation) DOC final result ( days after prelim results) 19

20 Scope-related Proceedings Scope comments in DOC investigation stage To clarify ambiguous scope language To request for clear exclusion from the scope Separate domestic like product argument at ITC investigation stage Scope Ruling Request After an order is imposed Request a ruling from DOC that a product is outside the scope of an order Changed Circumstances Review Request revocation of the order with respect to a particular product if U.S. domestic industry does not oppose 20

21 Five-year Sunset Review DOC and ITC review AD/CVD orders every five years to determine whether to continue the orders An order may be revoked as a result of ITC s negative injury determination ITC s analysis: whether revoking the order would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. Revocation of an order is possible if there were significant changes of market condition

22 Suspension Agreement In a suspension agreement, foreign exporters and producers can agree to modify their behavior to eliminate dumping or the injury caused thereby With NME, DOC may suspend investigation upon acceptance of an agreement to restrict the volume of imports Typically involves a price undertaking with periodic monitoring If DOC accepts the suspension agreement, investigation is suspended and DOC monitors compliance Agreements are exception, not the rule When? After DOC preliminary determination

23 THANK YOU Chunlian Yang 23