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ITA Final Rule Establishes Procedures for Importation of Supplies for Emergency Relief Free of AD and CV Duties

The International Trade Administration (ITA) has issued a final rule, effective November 29, 2006, that adds a new 19 CFR Part 358 to establish procedures for importation of supplies for use in emergency relief work free of antidumping (AD) and countervailing (CV) duties.

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According to the ITA, such supplies would be for use in emergency relief work related to a natural disaster or other emergency declared by the President.

Highlights of this final rule include the following provisions (partial list):

Definition of "supplies for use in emergency relief work."The ITA establishes the definition of "supplies for use in emergency relief work" under 19 CFR 358.102 as "food, clothing, and medical, surgical, and other supplies for use in emergency relief work."

Conditions for importation free of AD/CV duties. The ITA's final rule also establishes 19 CFR 358.103, which, among other things, permits the importation of supplies for use in emergency relief work free of AD and CV duties, under the following conditions:

Written request must be submitted prior to importation. Before importation, a written request shall be submitted to the Commerce Secretary (Secretary) by the person in charge of sending the subject merchandise from the foreign country, or by the person for whose account it will be brought into the U.S.

The request shall state the AD or CV duty order case number, the producer of the merchandise, a detailed description of the merchandise, the current HTS number, the price in the U.S., the quantity, the proposed date of entry, the proposed port of entry, the mode of transport, the person for whose account the merchandise will be brought into the U.S., the destination, the use to be made of the merchandise at the designated destination, and any other information the person would like the Secretary to consider.

Secretary will issue instructions to CBP, post notification of determination. If the Secretary determines to permit duty-free importation of particular merchandise for use in emergency relief work, the Secretary will notify the person who submitted the request, instruct U.S. Customs and Border Protection (CBP) to allow entry of the merchandise identified in the submitted request without regard to AD or CV duties, and post notification of the determination on the ITA's Web site.

Exempted merchandise must enter the U.S. within 60 days of notification.Any subject merchandise entered under these provisions must enter the U.S. normally within 60 days after the date on which the Secretary notifies the person who submitted the request or the merchandise will be subject to AD and/or CV duties, as applicable.

Exempted merchandise may not be used for other purposes.Any subject merchandise entered under these provisions which is used in the U.S. other than for a purpose contemplated for it by 19 USC 1318(a) may be subject to seizure or other penalty, including under 19 USC 1592.

Exempted merchandise is subject to ITA reporting requirements.Any subject merchandise entered under these proposed provisions is subject to the ITA's reporting requirements in its conduct of an AD or CV duty administrative or new shipper review, as applicable.

Exclusions from AD/CV proceedings. Under 19 CFR 351.103(f), any subject merchandise entered for use in emergency relief work will be excluded from (1) the calculation of assessment and cash deposit rates in an administrative or new shipper review, (2) "commercial quantities" requirements under 19 CFR 351.222, and (3) the quantity allowed by, or revised price requirements established pursuant to, a suspension agreement under section 704 or section 734 of the Tariff Act of 1930.

Secretary to issue 5-year report on the impact of determinations. The ITA also establishes 19 CFR 358.104, which states that the Secretary will review and issue a report on the first five years of the operation of 19 CFR Part 358. The report will consider the impact of determinations to permit importation of particular merchandise for use in emergency relief work, on U.S. parties injured by dumped and/or subsidized imports.

(See ITT's Online Archives or 06/29/06 news, 06062925, for BP summary of the proposed rule. (Note that the final rule reflects certain changes from the proposed rule.))

ITA contact - Stacy Ettinger (202) 482-4618

ITA final rule (D/N 060602144-6270-02, FR Pub 10/30/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-18193.pdf