China Cast Iron Soil Pipe Fittings: Commerce Issues CV Duty Final Determination
The Commerce Department issued its final affirmative countervailing duty determination on cast iron soil pipe fittings from China (C-570-063). Suspension of liquidation is currently not in effect for entries on or after April 18, and Commerce will only require cash deposits of estimated CV duties on future entries if it issues a CV duty order.
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Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due Aug. 20. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.
Commerce is also conducting an antidumping duty investigation on cast iron soil pipe fittings from China. An agency fact sheet says Commerce will also soon issue its final determination in that investigation, with AD rates ranging from 22.11% to 360.39%. Liquidation of entries of subject merchandise may still be suspended for AD duty purposes. Commerce issued its preliminary AD duty determination in February (see 1802160014).
Commerce Clarifies Scope, Adds HTS Numbers
Commerce clarified the scope of these AD/CV duty investigations to specify that the term "drains" in the scope means drain fittings. The agency also added two new Harmonized Tariff Schedule (HTS) numbers, 7324.29.0000 and 7307.92.3010, as examples of tariff subheadings that may be subject to AD/CV duties.
CV Susp/Cash Deposit Through April 17
For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from Dec. 19, 2017, through April 17, 2018.
CV Liq Reinstated and No CV Cash Deposit as of April 18
Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after April 18, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation without a CV duty order in place.
CV Liq to Be Suspended Again and CV Cash Deposit Required if Order Issued
Commerce will issue a CV duty order, reinstate the suspension of liquidation, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.
| Company | CV Rate |
|---|---|
| Shanxi Xuanshi Industrial Group Co., Ltd | 34.87% (from 8.66%) |
| Shijiazhuang Chengmei Import & Export Co., Ltd. | 133.94% (from 96.96%) |
| Wor-Biz International Trading Co., Ltd. (Anhui) | 7.37% (unchanged) |
| All Others | 23.28% (from 8.12%) |
(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the "gap period" of April 18 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/16 -- 12/31/16. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 1712180019 for a summary of the preliminary determination of this investigation, and 1801180014 for a summary the amended preliminary determination.)
(Federal Register 07/11/18)