Anti-Dumping and Countervailing Duties Flashcards
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What is 'circumvention' of an anti-dumping or countervailing duty order?
Answer: Attempts to evade AD/CVD duties by slightly altering a product or shifting assembly operations to third countries
Circumvention refers to actions taken to evade AD/CVD duty orders, such as minor product alterations, assembly operations in third countries, or shifting to slightly different merchandise — DOC can extend orders to cover such evasion schemes.
What is a 'scope ruling' in the context of AD/CVD proceedings?
Answer: A DOC determination clarifying whether a specific product is covered by an existing AD/CVD order
A scope ruling is issued by DOC to clarify whether a particular product falls within the scope of an existing AD/CVD order, determining whether AD/CVD duties apply to that specific merchandise.
What is a 'new shipper review' in the AD/CVD context?
Answer: A review allowing exporters with no exports during the original investigation period to obtain their own individual rate
A new shipper review allows exporters who did not export to the U.S. during the original investigation period to obtain their own individual dumping or subsidy rate rather than being subject to the 'all others' or country-wide rate.
How are anti-dumping duties finally assessed on a specific entry after an administrative review is completed?
Answer: DOC issues liquidation instructions to CBP, which liquidates the entry at the final assessed rate from the review
After an administrative review, DOC issues liquidation instructions to CBP, which liquidates the entry at the actual assessed rate; importers may owe additional duties or receive refunds depending on the final rate versus the cash deposit rate.
Under the WTO Anti-Dumping Agreement, how is dumping fundamentally defined?
Answer: Exporting a product at a price less than its normal value in the exporting country's home market
The WTO Anti-Dumping Agreement (implementing Article VI of GATT) defines dumping as exporting a product at a price less than its normal value — the comparable price in the domestic market of the exporting country.
What is the effect of a 'critical circumstances' determination in an AD/CVD investigation?
Answer: AD/CVD duties can be applied retroactively to entries made up to 90 days before the preliminary determination
A critical circumstances finding allows AD/CVD duties to be applied retroactively up to 90 days before the preliminary determination date, preventing importers from flooding the market with imports before duties take effect.
What is 'constructed value' as used in anti-dumping investigations to establish normal value?
Answer: The cost of production plus amounts for selling expenses and profit, used when home market sales are inadequate
Constructed value is used as the basis for normal value when there are insufficient home market sales; it is calculated as the cost of materials, fabrication, and processing, plus amounts for selling expenses, administrative costs, and profit.