ITA Requests Comments on Possible Changes to the Current "Successor in Interest" Analysis in CV Duty Changed Circumstances Reviews

The ITA states that its general approach has been to apply the "successor in interest" analysis that it uses for considering similar types of changes in antidumping (AD) duty changed circumstances reviews. However, based on recent experience, the ITA is now considering whether its practice regarding such reviews should be revised or clarified.

According to the ITA, it has conducted relatively few changed circumstances reviews involving the successorship of companies in the context of CV duty measures.

(In the context of an AD changed circumstances review involving a change in a company's name, structure or ownership, the ITA relies on its successor in interest criteria to determine whether the newly named or structured company ("successor company") remains essentially the same as the predecessor company.

Under this analysis, where the evidence demonstrates that the successor company operates as the "same business entity" as its predecessor with respect to the production and sale of the subject merchandise, the ITA will assign to the successor company the existing cash deposit rate of its predecessor (the successorship/business entity analysis).)

ITA to Consider Whether Current AD Analysis is Relevant in CV Duty Context

The ITA states that to the extent that the AD successorship/business entity analysis is concerned with the pricing behavior of the successor company it might not be entirely relevant in the CV duty context where price discrimination is not the analytical focus. The ITA states that other factors or considerations (e.g., factors that focus on whether subsidies to the predecessor are attributable to the successor, or on increased participation in or eligibility for new subsidy programs as a result of the changed circumstance) might be more relevant.

Among other things, the ITA also states that there is a broader question of whether the successorship/business entity analysis generally is too narrowly focused when reviewing the changed circumstances of a subsidized company. The ITA states that an examination that focuses largely or solely on changes in the legal or managerial structure or the productive capacity of a company may overlook other important considerations that also may be relevant in the context of subsidies and CV duties. For instance, whether the change (e.g., name change or merger) was accompanied or preceded by new subsidies, or had an impact on any existing subsidies to the companies involved, also might be a relevant consideration.

(See ITA notice for a complete discussion of issues.)

ITA Requests Comments on Appropriate Criteria for Analysis, Suggested Solutions, Etc.

The ITA states that in commenting on these issues, it invites commenters to identify and

discuss the criteria that they consider most appropriate for the successorship/business entity analysis in the CV duty context, whether they may be the same as the AD criteria, some mix of those criteria and others, or an entirely different set of criteria.

The ITA also invites commenters to address whether and how the ITA's analysis might extend beyond the successorship/business entity analysis to consider more directly any changes in the company's level of subsidization occasioned by the changed circumstance.

The ITA states that suggested practical solutions for addressing possible feasibility concerns are encouraged.

- comments must be received no later than 5 p.m. on February 23, 2007

ITA Contact -Gregory Campbell (202) 482-2239

ITA Notice (FR Pub 01/24/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-1015.pdf