Japan to Impose 15% Additional Duties on Certain U.S. Products Due to Byrd Amendment Dispute Beginning September 1, 2005
The Japanese Government has issued a press release announcing its determination to begin imposing on September 1, 2005 retaliatory sanctions on certain U.S. products in 15 Harmonized System (HS) codes in light of the U.S.' failure to repeal the Byrd Amendment.
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The World Trade Organization (WTO) has ruled that the Byrd Amendment is inconsistent with the U.S.' international obligations. (See BP note below for additional details on the Byrd Amendment dispute.)
Affected U.S. Products Include Steel Products, Bearings, Printing Machines, Etc.
According to the press release, Japan's level of retaliation does not exceed $52 million, which is the amount authorized by the WTO. From September 1, 2005, Japan will impose an additional 15% duty on the below-listed products identified by the following 15 HS Codes that are imported from the U.S.:
Bearings. 848210000, 848220000, 848240000, 848250000, 848280000, 848291000, and 848299000.
Steel products. 721090010, 722012000, and 722699010.
Navigational Instruments. 901480000.
Machinery Accessories. 846610010.
Printing Machines. 844330000.
Forklift Trucks. 842720000.
Industrial Belts. 591000020.
the Continued Dumping and Subsidy Offset Act (CDSOA).
(See ITT's Online Archives or 09/02/04 news, 04090205, for BP summary of the WTO's authorization for Japan and other countries/economies to impose retaliatory measures for the Byrd Amendment.
See ITT's Online Archives or 06/02/05 news, 05060215, for BP summary of U.S. Customs and Border Protection's intent to distribute fiscal year 2005 antidumping/countervailing revenues to affected domestic producers pursuant to the Byrd Amendment.)
Japanese Government's press release (dated 08/01/05) available at http://www.meti.go.jp/english/information/data/WTOByrd050801e.html
Statement of Japanese Minister of Economy, Trade, & Industry (dated 08/01/05) available athttp://www.meti.go.jp/english/information/data/cWTOByrd050801e.html
BP Note on Byrd Amendment - Canada & EU Imposed Sanctions on May 1, 2005
On May 1, 2005, both the European Union (EU) and Canada began imposing 15% additional duties on various U.S.-origin products in light of the U.S.' failure to repeal the Byrd Amendment.
The Canadian government has previously explained that, in addition to Canada and the EU, the WTO has granted retaliation authorization to Brazil, Chile, India, Japan, Korea, and Mexico. The Canadian government has also stated that although Thailand and Indonesia participated in the WTO Byrd Amendment dispute, these two countries did not request retaliation rights.
(The Byrd Amendment requires that the revenues from antidumping (AD) and countervailing (CV) duties assessed on or after October 1, 2000 be distributed on an annual basis to the affected domestic producers (i.e. currently operating producers (including worker representatives) that were either petitioners for the AD/CV duty order in question or interested parties in support of the petition) for specified qualifying expenditures (e.g. manufacturing facilities, research and development, personnel training). See ITT's Online Archives or 10/19/00 news, 00101837, for BP summary.)