Anti-Dumping and Countervailing Duties Flashcards
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Read the first 7 Anti-Dumping and Countervailing Duties flashcards as text
What is a countervailing duty (CVD) designed to offset?
Answer: Foreign government subsidies that give imported goods an unfair price advantage
Countervailing duties offset foreign government subsidies (such as grants, below-market loans, or tax benefits) provided to foreign producers, which artificially lower the cost of their exports to the U.S.
Which of the following would most likely qualify as a countervailable subsidy in a CVD investigation?
Answer: A foreign government providing below-market-rate loans to an exporter
Below-market-rate government loans constitute a financial contribution that confers a benefit on the recipient, making them countervailable subsidies under U.S. CVD law.
What is a 'sunset review' in the context of anti-dumping and countervailing duty orders?
Answer: A five-year review to determine whether revoking an order would lead to recurrence of dumping or injury
Sunset reviews, conducted every five years, determine whether revoking an AD or CVD order would likely lead to continuation or recurrence of dumping or subsidization and material injury to the U.S. industry.
What is an 'administrative review' in the anti-dumping duty process?
Answer: An annual review by DOC to determine actual dumping margins for specific exporters and set final duty assessments
Administrative reviews, conducted annually by DOC upon request, calculate actual dumping margins for specific exporters during the review period and establish the duty rates for final assessment of entries covered by that period.
What does 'de minimis' mean in the context of anti-dumping duty investigations?
Answer: A dumping margin below 2% which is treated as zero and results in no AD duty order
In AD investigations, a dumping margin of less than 2% is considered de minimis (negligible), so no anti-dumping duty order will be issued; for CVD cases, the de minimis subsidy rate threshold is less than 1%.
What rate applies to exporters who were not individually investigated in an AD proceeding and are not named respondents in the order?
Answer: The 'all others' rate, typically a weighted average of individually examined respondents' rates
The 'all others' rate applies to exporters not individually investigated; it is typically calculated as a weighted average of the rates determined for the companies that were individually examined.
Under U.S. AD/CVD law, what legal standard for 'material injury' must the USITC find to support an order?
Answer: Harm to a domestic industry that is more than inconsequential, immaterial, or unimportant
The USITC must find that the domestic industry is materially injured or threatened with material injury — the statute defines this as harm that is more than inconsequential, immaterial, or unimportant.