Prime Energy Cleantech News: Solar Policies
Prime Energy Cleantech: As global competition in the solar industry intensifies, SEIA will continue to support open markets based on free and fair trade principles.
AD/CVD Petition Investigatory Process
Upon the filing of an AD/CVD Petition with the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC), two separate investigatory processes are commenced.
First, the ITC – an independent agency led by six commissioners, including three Republicans and three Democrats – begins its investigation to make a preliminary determination. The preliminary determination establishes whether the allegedly dumped and subsidized imports cause or threaten to cause material injury to the domestic industry. The agency has 45 days to conduct an investigation and make a preliminary determination.
On Dec. 2, 2011, the ITC rendered an affirmative preliminary injury determination. The ITC’s decision means that the case now proceeds with the U.S. Department of Commerce’s preliminary investigation into possible dumping and countervailable subsidies. During this preliminary determination by the DOC, the DOC must determine whether the alleged unfair trade practice exists.
DOC’s first responsibility, which coincides with the ITC’s preliminary investigation, is to decide within 20 days after the petition was filed whether it provides sufficient evidence to meet the legal requirements for an investigation.
If an investigation is initiated, DOC will identify several individual Chinese manufacturers as “mandatory respondents” to investigate. Based largely upon data collected from questionnaires to the mandatory respondents, DOC will determine whether there is any dumping and subsidization. DOC has approximately six months from the date the petition was filed to render its preliminary determination.
If the DOC’s preliminary determination is affirmative, the agency will instruct U.S. Customs and Border Protection to begin collecting cash deposits on the imported products covered by the scope of the investigation. If the DOC’s preliminary determination is negative, both agencies continue the investigation through final determinations.
At this point, the importer of record – the party officially listed on entry documents provided to U.S. Customs and Border Protection – is responsible for paying the cash deposits owed on the subject merchandise entered into the United States, according to the “U.S. Department of Commerce Antidumping Manual.” Accordingly, purchasing subject merchandise from an unaffiliated U.S. importer generally does not subject the purchaser to liability.
Goods that have entered the U.S. before the date of DOC’s preliminary determination are generally not subject to cash deposits and AD/CVD duties. There is an exception, however, if both the ITC and DOC determine that imports into the United States escalated after the petition was filed in order to avoid potential AD/CVD duties. Under this scenario, cash deposits and eventual AD/CVD duties may be applied approximately 90 days after the date the petitions were filed.
Once DOC renders its preliminary determination, both DOC and the ITC then proceed with final investigations. In contrast to DOC’s final investigation, where the data collection process is weighted towards the preliminary investigation, the ITC’s final investigation is longer and more data intensive than its preliminary investigation. The ITC final investigation also includes a hearing where petitioners and respondents have the opportunity to speak directly to the Commissioners.
If both the ITC and Commerce render affirmative final determinations at the conclusion of the approximately 12-13 month investigation, antidumping and/or countervailing duties orders are issued.
For more information, please visit: http://www.seia.org/cs/solar_policies/Trade
