China HEDP: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on 1-hydroxyethylidene-1, 1-diphosphonic acid (HEDP) from China (A-570-045/C-570-046). The agency will determine whether imports of Chinese HEDP are being sold in the U.S. at less than fair value or are illegally subsidized. The period under investigation in the CV duty case is Jan. 1, 2015, through Dec. 31, 2015. In the AD duty investigation, it's July 1, 2015 through Dec. 31, 2015.
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The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped HEDP are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due May 16, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in June for CV duties and September for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CV duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.
If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the "China-wide rate," which can reach over 200 percent for some products. Separate rate applications from Chinese producers and exporters (here) are due on or about May 28.
AD/CVD Respondent Selection
Commerce will send quantity and value questionnaires to each potential respondent to the AD duty investigation, and will base respondent selection on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one. Commerce will post the quantity and value questionnaire (here). Responses are due on or about May 4.
In the CV duty investigation, Commerce will select respondents based on CBP data. Comments on respondent selection in the CV duty investigation are due May 5.
Scope of the AD/CVD Investigations
The merchandise covered by this investigation includes all grades of aqueous acidic (nonneutralized) concentrations of 1-hydroxyethylidene-1, 1-diphosphonic acid (HEDP), also referred to as hydroxyethylidenendiphosphonic acid, hydroxyethanediphosphonic acid, acetodiphosphonic acid, and etidronic acid. The CAS (Chemical Abstract Service) registry number for HEDP is 2809-21-4.
The merchandise subject to this investigation is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 2931.90.9043. It may also enter under HTSUS subheadings 2811.19.6090 and 2931.90.9041. While HTSUS subheadings and the CAS registry number are provided for convenience and customs purposes only, the written description of the scope of this investigation is dispositive.
Comments on Scope Due by May 10
Comments on the scope of these investigations are due by May 10.
Investigations Timetable
| Event | AD Duty | CV Duty |
|---|---|---|
| Petitions filed | 03/31/16 | 03/31/16 |
| DOC initiation date | 04/20/16 | 04/20/16 |
| ITC prelim determinations* | 05/16/16 | 05/16/16 |
| DOC prelim determinations† | 09/07/16 | 06/24/16 |
| DOC final determinations† | 11/21/16 | 09/07/16 |
| ITC final determinations‡ | 01/05/17 | 10/24/16 |
| Issuance of orders+ | 01/12/17 | 10/31/16 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
(See 1604060025 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)
The AD duty initiation notice is (here).
The CV duty initiation notice is (here).
The Commerce Department fact sheet on the initiation of these investigations is (here).