ITA Determines Not to Deduct Countervailing Duties from U.S. Prices When Calculating AD Duty Rates
The International Trade Administration (ITA) has issued an appendix to a notice of final results of administrative review1, which states that it has determined that U.S. antidumping (AD) law (19 USC 1677a(c)(2)(A)) does not intend countervailing (CV) duties to be deducted from U.S. prices 2 when calculating AD margins (rates).
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Although this AD law requires that in calculating AD margins, the ITA deduct from U.S. prices any U.S. import duties or other selling expenses included in those prices, the ITA states that it does not believe that CV duties are either U.S. import duties (i.e. regular Customs duties) or selling expenses.
Moreover, the ITA states that deducting CV duties from the U.S. price when calculating AD margins would effectively collect the CV duties a second time.
As a result, the ITA states that it will continue to not deduct CV duties from U.S. prices when calculating AD margins, adding that to the extent that CV duties may reduce dumping margins, this is not a distortion of any margin to be eliminated, but a legitimate reduction in the level of dumping.
1 This appendix is attached to the final results of AD duty administrative review for low
enriched uranium from France. (See ITT's Online Archives or 08/04/04 news, 04080430 for BP summary of these final results.)
2 According to ITA sources, the U.S. price refers to the export price (EP) or the constructed export price (CEP), which are defined in 19 USC 1677a(a) and (b).
(See ITT's Online Archives or 09/11/03 news, 03091120 for BP summary of the ITA's request for comments on this issue and on the treatment of section 201 duties in AD proceedings. See ITT's Online Archives or 05/12/04 news, 04051240 for BP summary on the ITA's determination not to deduct section 201 duties from the U.S. Price in calculations AD duty rates.)
ITA notice of final results of LEU from France and appendix (FR Pub 08/03/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-17565.pdf