Commerce Agrees to Slash PET Exporter's CVD Rate After CIT Rejects Use of AFA
The Commerce Department and exporter Jindal Poly Films agreed that the company will receive a 10.51% countervailing duty rate for its shipments of polyethylene terephthalate film, sheet and strip entered Jan. 1, 2021, through May 16, 2021, and an 11.67% countervailing duty rate for shipments of the same merchandise entered May 17, 2021, through Dec. 31, 2021 (Jindal Poly Films v. United States, CIT # 24-00053).
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Commerce agreed to the rate reduction after the Court of International Trade ruled that the agency abused its discretion when imposing a 116.96% adverse facts available rate against Jindal after rejecting the company's affiliate questionnaire response as untimely in the 2021 administrative review of the CVD order on PET film from India (see 2508010040).
Judge Mark Barnett held that the agency failed to consider other factors in rejecting the submission, including the "early stage of the proceeding," the fact that Jindal was selected only after requests for review of all other companies were withdrawn and whether accuracy considerations outweighed the burden on Commerce. Jindal said it missed the deadline due to a "communication gap" and a "medical leave" for a "severe illness" by the "person responsible for addressing matters before the agency," among other reasons.
Following Barnett's decision, the U.S. and Jindal filed a joint stipulation for entry of judgment in the case that says Commerce will set the CVD rate for the respondent's entries at either 10.51% or 11.67% based on when they entered the U.S. The judge dismissed the case in response on Jan. 29.