Petition Filed for New AD/CVD on Fresh Winter Strawberries From Mexico
A domestic coalition recently filed a petition with the Commerce Department and the International Trade Commission requesting antidumping and countervailing duties be imposed on fresh winter strawberries from Mexico. Commerce now will decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CVD orders and the assessment of AD and CVD on importers. The investigation was requested by the Strawberry Growers for Fair Trade, which consists of Florida-based companies and the Florida Department of Agriculture and Consumer Services.
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The petition said that there are differences in "the physical characteristics of Winter Strawberries as compared to non-Winter strawberries," which include "differences in sweetness and aroma." The petition requested a regional industry analysis, saying that the product is primarily grown and sold East of the Mississippi River. Law firm Akin Gump noted that the regional provision of the Tariff Act is "rarely used."
Should Commerce decide to begin the investigations, it would likely do so around Jan. 20, according to an alert from law firm Husch Blackwell. The ITC would hold its preliminary injury vote around Feb. 14, and suspension of liquidation and collection of cash deposits could begin in June (and potentially be retroactive back to late January if Commerce finds critical circumstances). These deadlines can be, and often are, delayed.
Proposed Scope
The petition proposes the following scope for the investigations:
"The merchandise covered by this investigation is all fresh and chilled winter strawberries (“winter strawberries”) from Mexico harvested or entered during the period October 1 through March 31.
"Winter strawberries may be stemmed or de-stemmed, imported in bulk or loose form, or may be imported in individual containers packaged for retail sale. The scope of this investigation includes all winter strawberries, whether or not organic, and irrespective of color, grade, shape, size, or packaging. Subject merchandise may be cleaned, coated, washed, waxed, inspected, subjected to metal detection, and/or vacuum cooled prior to importation.
"Winter strawberries covered by this investigation are classified under the following subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), according to the season of importation: 0810.10.4040 and 0810.10.4080. Although the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive."
ITC and Commerce to Accept Comments Before Initiating Investigation
The Commerce Department and the ITC will accept comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, the ITC and Commerce will initiate AD/CVD investigations.