Commerce Self-Initiates New AD/CVD Investigations on Aluminum Sheet From China
The Commerce Department on Nov. 28 announced it is beginning antidumping and countervailing duty investigations on common alloy aluminum sheet from China (A-570-073/C-570-074). The self-initiation marks the first time in a quarter century that the agency will begin AD/CVD investigations on its own behalf, without a request from domestic producers. Like in any other AD/CVD investigation, Commerce will determine whether imports of Chinese aluminum sheet is being sold in the U.S. at less than fair value or are illegally subsidized, and the International Trade Commission will conduct a concurrent investigation on whether there is injury to U.S. domestic producers.
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Commerce last self-initiated a CV duty investigation in 1991 on softwood lumber from Canada, and its last self-initiated AD duty investigation was carried out in 1985 on semiconductors from Japan, Commerce said. “Normally, AD and CVD investigations are initiated in response to petitions filed by a domestic industry alleging that dumped or unfairly subsidized goods are being exported into the U.S. market,” Commerce said in its announcement. “By contrast, self-initiation authority can be exercised whenever the Secretary determines, from information available, that a formal AD or CVD investigation is warranted.”
Commerce Secretary Wilbur Ross has previously expressed interest in self-initiating AD/CVD cases (see 1704140002), in part to help small companies that lack the resources to collect data and fund the proceedings (see 1701180053). A Commerce official has also said self-initiations would remove the impediment of strict domestic industry support requirements for AD/CV duty petitions, and could be useful in cases involving U.S. companies that have operations or investments in foreign countries that may fear that filing a petition against those countries would cause their business deals to get quashed in retaliation (see 1710270037).
The Commerce Department had up to now in 2017 initiated 77 AD and CV duty investigations, not including the new one, in response to petitions filed by domestic producers, it said. “The initiation of two more investigations, under the self-initiation authority provided to the Secretary, brings the year-to-date total to 79 – a 65 percent increase from 48 in the previous year,” Commerce said. Commerce will likely continue to normally proceed with basing AD/CVD investigations on industry petitions, though it will self-initiate investigations going forward “where warranted, to facilitate the application of the appropriate trade remedy for U.S. industries,” it said.
The International Trade Commission, an independent agency not directly controlled by the administration, will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized aluminum sheet are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Jan. 16, 2018, according to a Commerce statement, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in February 2018 for CV duties and April 2018 for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation, Commerce said.
International Trade Today will have more information on the scope of these investigations and deadlines for submissions when the initiation notice is published in the Federal Register.