2nd Reminder on ITA's New Policy of Assessing Certain Resellers/Intermediaries at the "All Others" AD Rate

(The ITA had stated that its notice does not apply to imports of merchandise from non-market-economy (NME) countries (such as China), nor does it apply to imports of merchandise subject to a countervailing (CV) duty order. The ITA had also stated that its notice allows interested parties to make an informed determination about whether to request a review of a reseller.)

Automatic Liquidation "as Entered"

No rate for reseller, no administrative review of reseller/producer. Automatic liquidation at the AD cash deposit rate required at the time of entry (as entered) can only apply to a reseller which does not have its own rate if no administrative review has been requested, either of the reseller or of any producer of merchandise the reseller exported to the U.S.

Liquidation at Producer's Rate or "All Others" Rate

No rate for reseller, administrative review of producer. If the ITA conducts an administrative review of a producer of the reseller's merchandise where entries of the merchandise were suspended at the producer's rate, automatic liquidation at the AD rate at time of entry will not apply to the reseller's sales. Instead:

liquidation at producer's rate. If, in the course of an administrative review, the ITA determines that the producer knew, or should have known, that the merchandise it sold to the reseller was destined for the U.S., the reseller's merchandise will be liquidated at the producer's assessment rate which the ITA calculates for the producer in the review.

liquidation at "all others" rate. If, on the other hand, the ITA determines in the administrative review that the producer did not know that the merchandise it sold to the reseller was destined for the U.S., the reseller's merchandise will not be liquidated at the assessment rate the ITA determines for the producer or automatically at the rate required as a deposit a the time of entry. In that situation, the entries of merchandise from the reseller during the period of review will be liquidated at the all others rate if there was no company-specific review of the reseller for that review period.

Effective Date of Policy

According to the ITA, the 2003 notice applies to all entries for which the anniversary month for requesting an administrative review of an AD duty order is May 2003 or later.

(See ITA notice for more information, including comments and ITA responses. See ITT's Online Archives or 06/02/03 news, 03060245 for original BP summary of this 2003 ITA clarification. See ITT's Online Archives or 02/23/06 news, 06022305 for initial reminder).

ITA notice on clarification (FR Pub 05/06/03) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/pdf/03-11226.pdf ; alsoavailable at http://ia.ita.doc.gov/assessment/new/reseller-announcement-05-02-2003.html

ITA notice stating that clarification applies to most recent May anniversary date notice (FR Pub 05/15/03) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/pdf/03-12185.pdf

BP Note

U.S. Customs and Border Protection (CBP) has posted the ITA's May 6, 2003 Federal Register notice to its Web site. According to CBP sources, CBP is implementing it "as is" and there are no further interpretive CBP instructions for the trade at this time.

Sources also state that the trade is beginning to feel the effect of the ITA's 2003 policy as affected AD entries are starting to liquidate. Sources add that this is the case for certain bearings from market economies that are subject to AD duties, as the bearings market involves a number of resellers.