Commerce Decides to Apply CV Law to China (Preliminarily Affirmative CV Determinations for Coated Free Sheet Paper from China, Indonesia and Korea)
The Department of Commerce (Commerce) has announced its preliminary decision to apply U.S. anti-subsidy law to imports from China. According to Commerce, the decision alters a 23-year policy of not applying the CV duty law to non-market economy (NME) countries, and reflects China's economic development.
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(Commerce explains that Georgetown Steel1 no longer applies to China because of the vast differences between the characteristics of the NMEs of the 1980s Soviet-bloc countries and China's economy today.)
Commerce Determines that Development of China's Economy Warrants Application of CV Duty Law, Etc.
According to a Commerce press release, Commerce Secretary Gutierrez stated that China's economy has developed to the point that the U.S. can add another trade remedy tool, such as the CV duty law. Guiterrez stated that just as China has evolved, so has the range of tools to make sure Americans are treated fairly.
Commerce adds that it recognizes that the basis of its conclusion to apply the CV duty law to China may require a review of U.S. antidumping (AD) methodology for China, particularly at the enterprise-specific level, and is currently considering this issue.
Commerce Makes Preliminary Affirmative CV Determinations for China, Indonesia, and Korea
According to Commerce, its preliminary decision determined that Chinese producers and exporters of coated free sheet paper received countervailable subsidies ranging from 10.90-20.35%.
Commerce also announced its preliminary results of the CV duty investigations covering imports of coated free sheet paper from Indonesia and Korea. Commerce is currently scheduled to announce its final determinations in all three CV duty investigations by mid-June, although the law allows postponement until mid-October.
(See future issues of ITT for BP summaries of the preliminary affirmative CV duty determinations for coated free sheet paper from China, Indonesia, and Korea.)
(The International Trade Administration (ITA) is also conducting an AD duty investigation on imports of coated free sheet paper from China, Indonesia, and Korea. See ITT's Online Archives or 03/20/07 news, 07032025, for BP summary of the postponement of these preliminary AD duty determinations.)
(See ITT's Online Archives or 01/08/07 news, 07010830, for BP summary of the postponement of the preliminary CV duty determinations for coated free sheet paper from China, Indonesia and Korea.
See ITT's Online Archives or 12/19/06 news, 06121925, for BP summary of the ITA's request for comments on the application of CV duties to imports from China.)
1In 1986, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed that the Commerce has the discretion to not apply the CV duty law to NME countries in Georgetown Steel Corp. v. U.S. On March 29, 2007, The Court of International Trade (CIT) reaffirmed Commerce's position that the Georgetown Steel decision was not a bar to applying the CV duty law to NMEs, but instead, was a recognition of Commerce's broad discretion in this area.
(See ITT's Online Archives or 04/02/07 news, 07040299 1, for earlier BP summary of this Commerce press release.)
Commerce press release, dated 03/30/07, available at http://www.commerce.gov/opa/press/Secretary_Gutierrez/2007_Releases/March/30_Gutierrez_China_Anti-subsidy_law_application_rls.html
Commerce fact sheet on the preliminary affirmative CV duty determination for China, Pub 03/30/07, available at http://ia.ita.Commerce.gov/download/prc-cfsp/FINAL%20China%20CVD%20Prelim%20factsheet.pdf
Commerce CV duty determination fact sheet on coated free sheet paper from Indonesia, Pub 03/30/07, available at http://ia.ita.Commerce.gov/download/indonesia-cfsp/FINAL%20CFS%20Indonesia%20CVD%20Prelim%20factsheet.pdf
Commerce CV duty determination fact sheet on coated free sheet paper from Korea, Pub 03/30/07, available at http://ia.ita.Commerce.gov/download/korea-cfsp/FINAL%20CFS%20Korea%20CVD%20Prelim%20factsheet.pdf