Canada Large Civil Aircraft: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on 100- to 150-seat large civil aircraft from Canada (A-122-859/C-122-860). The agency will determine whether imports of Canadian large civil aircraft are being sold in the U.S. at less than fair value or are illegally subsidized. The CV duty investigation covers entries Jan. 1, 2016, through Dec. 31, 2016. The AD duty investigation covers entries April 1, 2016, through March 31, 2017.
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Boeing filed the underlying petition, which targets Bombardier’s CS100 and CS300 passenger aircraft. The petition targets aircraft that have been bought but not yet imported. According to Boeing, Delta has ordered 75 Bombardier C-series aircraft and is scheduled to begin taking delivery in 2018, the petition said. "Given Bombardier's contractual obligation to fulfill Delta's large firm order, significant subject imports -- and a significant increase in subject imports' market share at the expense of the domestic like product -- are virtually certain,” the petition said. “And the terms of this order are already fixed at prices that are absurdly low. Bombardier's subsidized dumping at Delta established a new, low price ceiling that will depress Boeing prices, revenues, and profits even further.”
The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized large civil aircraft are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due June 12, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in July for CV duties and October 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 orders 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.
AD/CVD Respondent Selection
Commerce says it will only individually examine the single producer it knows of subject merchandise, Bombardier. Comments on respondent selection are due May 31.
Scope of the AD/CVD Investigations
The merchandise covered by this investigation is aircraft, regardless of seating configuration, that have a standard 100- to 150-seat two-class seating capacity and a minimum 2,900 nautical mile range, as these terms are defined below.
“Standard 100- to 150-seat two-class seating capacity” refers to the capacity to accommodate 100 to 150 passengers, when eight passenger seats are configured for a 36-inch pitch, and the remaining passenger seats are configured for a 32-inch pitch. “Pitch” is the distance between a point on one seat and the same point on the seat in front of it.
“Standard 100- to 150-seat two-class seating capacity” does not delineate the number of seats actually in a subject aircraft or the actual seating configuration of a subject aircraft. Thus, the number of seats actually in a subject aircraft may be below 100 or exceed 150.
A “minimum 2,900 nautical mile range” means:
- (i) able to transport between 100 and 150 passengers and their luggage on routes equal to or longer than 2,900 nautical miles; or
- (ii) covered by a U.S. Federal Aviation Administration (FAA) type certificate or supplemental type certificate that also covers other aircraft with a minimum 2,900 nautical mile range.
The scope includes all aircraft covered by the description above, regardless of whether they enter the United States fully or partially assembled, and regardless of whether, at the time of entry into the United States, they are approved for use by the FAA.
The merchandise covered by this investigation is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 8802.40.0040. The merchandise may alternatively be classifiable under HTSUS subheading 8802.40.0090. Although these HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive.
Comments on Scope Due by Jan. 4
Comments on the scope of these investigations are due by June 6.
Investigations Timetable
| Event | AD Duty | CV Duty |
|---|---|---|
| Petitions filed | 04/27/17 | 04/27/17 |
| DOC initiation date | 05/17/17 | 05/17/17 |
| ITC prelim determinations* | 06/12/17 | 06/12/17 |
| DOC prelim determinations† | 10/04/17 | 07/21/17 |
| DOC final determinations† | 12/18/17 | 10/04/17 |
| ITC final determinations‡ | 02/01/18 | 11/20/17 |
| Issuance of orders+ | 02/08/18 | 11/27/17 |
*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 1704280027 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).