Commerce Department issues affirmative final circumvention ruling on steel from Vietnam.

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Photo by Louis PHDC on Pexels.com

According to a May 21, 2018 news release on the U.S. Department of Commerce (Commerce) website – the Commerce department announced an affirmative ruling on corrosion-resistant steel (CORE) and certain cold-rolled steel flat products (cold-rolled steel) imported from the Socialist Republic of Vietnam (Vietnam) produced from substrate originating in the People’s Republic of China (China) are circumventing the antidumping and countervailing duty (AD/CVD) orders on CORE and cold-rolled steel imported from China.

In order to avoid payment of duties, some manufacturers ship goods to another country not subject to duties, and from there send the goods to the United States. This practice is known as “transshipment” and we will likely hear more reports of transshipment as manufacturers look for ways to avoid the steel and aluminum duties.

While the steel here is produced in Vietnam, Commerce found circumvention of AD/CVD orders did occur because the subject merchandise is the same class or kind of merchandise subject to existing orders and completed or assembled in a third party country prior to importation to the US.

Commerce will notify Customs and Border Protection (CBP) to continue collecting cash deposits on imports of CORE and cold-rolled steel produced in Vietnam using Chinese-origin materials at an AD rate of 199.43 percent and CVD rate of 39.05 percent.

CBP will also collect AD and CVD cash deposits on imports of cold-rolled steel produced in Vietnam using Chinese-origin substrate at rates of 199.76 percent and 256.44 percent, respectively.

If you have any questions about this or any other AD/CVD order, call experienced antidumping attorney David Hsu at 832-896-6288 or email at attorney.dave@yahoo.com.

Givens and Johnston will give an AD/CVD presentation to the HCBFFA.

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On Wednesday, May 23, 2018, Scott Johnston, James Garland Hurst and Luis Arandia of Givens and Johnston, PLLC will present a half-day program regarding Anti Dumping/ Countervailing Duties.

Topics covered include:

1. What are orders

2. Overview

  • a. Process
  • b. Scopes
  • c. Updates

3. Meaning of Case numbers

4. How to Research AD / CVD

5. Scope Determinations

6. Administrative Review

7. Petitions

8. What is Critical Circumstances

9. CBP Role in AD / CVD

10. Origin irregularities

11. Collection

12. Sunset Reviews

13. Other Trade Remedies

14. Section 232 – 301

15. Current Trade Issues

CCS / CES Point Information:  

This event has been approved for 3.5 NCBFAA CCS points.

For more details and to register, visit HCBFFA.org

 

Trump delays decision on steel and aluminium tariffs.

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A little background – back in March 2018, President Trump imposed worldwide tariffs of 25% on imports of steel and 10% on aluminum. Countries such as Canada, Mexico and the European Union were temporarily exempted from these tariffs.

Later in April, the US gave South Korea a permanent exemption from these tariffs in exchange for a 30% reduction of SK exports of steel to the United States.

One country not exempted was China, and as posted previously on this blog, China retaliated with their own duties on many US imports to the middle kingdom.

Fast forward to May 1st and the current administration has extended negotiations on steel and aluminium tariffs for an additional 30 days with Canada, Mexico and the European Union. Tentative agreements have been reached with Argentina, Brazil and Australia.

Check back here for more details as they become available.

Latest CBP Instructions on Section 232 Investigations (April 11, 2018)

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Photocredit: Imaginechina/REX/Shutterstock

See below for the most recent instructions regarding the Section 232 Investigations. These instructions were released by the CBP, on April 11th. The original text can be found here.

Commodities: Unchanged and includes steel mill and aluminum articles as specified in proclamations.

COUNTRIES COVERED:
March 23, 2018 through April 30, 2018: All countries of origin except Canada, Mexico, Australia, Argentina, South Korea, Brazil and member countries of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom).

However, after May 1, 2018, all countries of origin.

Customs does make a note to remind readers that it is based on the country of origin, not the country of export.

ENTRY SUMMARY FILING INSTRUCTIONS:

Steel Products: importers shall use the HTS classification for imported merchandise subject to duty: 9903.80.01 (25 percent ad valorem additional duty for steel mill products)

Aluminum Products: importers shall use HTS classification: 9903.85.01 (10 percent ad valorem additional duty for aluminum products)

If the two above HTS numbers are not used for importers under Chapters 72, 73 and 76 for the covered countries of origin, these error messages will display:

E1 IQ10 LINE SUBJECT TO QUOTA

E1 FQ09 QUOTA NOT ALLOWED FOR ENTRY TYPE

E1 FQ05 BANNED IMPORT

E1 RF998 TRANSACTION DATA REJECTED

Note: Quota is not in effect, but this ACE functionality is being used to validate entry summary transmissions and reject when validations determine the data is missing the required chapter 99 number.

If importers or filers do not include the chapter 99 code with their Post Summary Corrections for imports under Chapters 72, 73 and 76, the above reject messages will also appear.

Importers may file a protest if they believe an entry was incorrectly liquidated.

Below are the FREQUENTLY ASKED QUESTIONS from the CBP website copied for your convenience.

1. What is the timing of duty calculations on immediate transportation in bond entries subject to Section 232?

Pursuant to the Presidential Proclamations, duties are due on goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.

19 CFR 141.69(b) states:

Merchandise which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation, if entered for consumption at the port designated by the consignee or his agent in such transportation entry without having been taken into custody by the port director for general order under section 490, Tariff Act of 1930, as amended ( 19 U.S.C. 1490), shall be subject to the rates in effect when the immediate transportation entry was accepted at the port of original importation.

For such entries covered by an entry for immediate transportation, and with a country of origin and Harmonized Tariff Schedule classification subject to the Presidential Proclamations, such entries shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation.

Accordingly, entries of steel and aluminum articles covered by an entry for immediate transportation accepted at the port of original importation before March 23, may have been incorrectly rejected by CBP and/or incorrectly filed with a Chapter 99 steel or aluminum HTS classification.

CBP is working to address the incorrectly filed entries to alleviate the need for the trade to resubmit entry summaries, submit post summary corrections (PSC), or file protests. CBP is aware that some entry summaries incorrectly submitted with the Chapter 99 HTS classification may have a deadline approaching to pay the associated duties. CBP will fully consider the issues associated with these entries in enforcing the duty deadline and CBP will be addressing these entries promptly. Importers who incorrectly paid duties pursuant to the Presidential Proclamations on an AD/CVD entry, and want to request an administrative refund of these duties prior to liquidation, may file a PSC to request an administrative refund of these duties prior to liquidation.

2. Which Harmonized Tariff System (HTS) classifications under HTS 7616.99.51 are subject to the Section 232 duties.

Per the Presidential Proclamations, 7616.99.51.60 and 7616.99.51.70 are subject to the Section 232 duties.

If you have any questions, call customs and trade law attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

USITC Votes to Continue Investigations on Common Alloy Aluminum Sheet from China.

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According to News Release 18-008 from the United States International Trade Commission (USITC) website (found here), the USITC voted to continue investigations on common alloy aluminum sheet from China. The USITC typically continues investigations if they believe there is a reasonable indication that a U.S. industry is materially injured due to imports of common alloy aluminum sheet from China. The “material injury” results because the USITC believes the manufacturing of aluminum sheet is being subsidized and sold in the US at a cost lower than “fair value”.

A continuation of an investigation means the US Department of Commerce (Commerce) will continue antidumping and countervailing duty investigations. The due date for the preliminary countervailing duty determination is due February 1, 2018. The antidumping duy determination is due on April 17, 2018.

The investigation of common alloy aluminum sheet from China can be found in Investigation Numbers 701-TA-591 and 731-TA-1399, publication number 4757, dated January 2018.

If you have any questions about these orders, or want to know if any of the products you import may be subject to dumping, please feel free to contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

January 11, 2018 – Initiation of Antidumping and Countervailing Duty Administrative Reviews.

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As posted in the Federal Register here, the U.S. Department of Commerce is initiating administrative reviews on multiple antidumping and countervailing duty orders:

Antidumping Duty Proceedings:
India: Welded Stainless Pressure Pipe A-533-876
Indonesia: Monosodium Glutamate A-560-826
Mexico: Certain Circular Welded Non-Alloy Steel Pipes and Tubes A-201-805
Mexico: Steel Concrete Reinforcing Bar A-201-844
Republic of Korea: Circular Welded Non-Alloy Steel Pipe A-580-809
Taiwan: Certain Circular Welded Non-Alloy Steel Pipe A-583-814
The People’s Republic of China: Diamond Sawblades and Parts Thereof A-570-900
The People’s Republic of China: Certain Hot-Rolled Carbon Steel Flat Products A-570-865
The People’s Republic of China: Fresh Garlic A-570-831
The People’s Republic of China: Monosodium Glutamate A-570-992
The People’s Republic of China: Polyethlene Terephthalate (Pet) Film A-570-924
The People’s Republic of China: Seamless Refined Copper Pipe and Tube A-570-964
United Arab Emirates: Polyethylene Terephthalate (Pet) Film A-520-803

Countervailing Duty Proceedings
India: Welded Stainless Pressure Pipe C-533-868
The People’s Republic of China: Certain Passenger Vehicle and Light Truck Tires 7 C-570-017
The People’s Republic of China: Chlorinated Isocyanurates C-570-991 1/1/16-12/31/16
Turkey: Steel Concrete Reinforcing Bar C-489-819

If you have any questions about administrative reviews or general antidumping and countervailing duty questions, feel free to call us at anytime: 832.896.6288 or contact us by email at attorney.dave@yahoo.com.

U.S. Department of Commerce Issues Preliminary Antidumping Duties On Chinese Solar Cells.

pexels-photo-371900.jpegYesterday I posted about countervailing duties on imports of crystalline silicon photovoltaic cells; today’s solar panel post is about the preliminary results of the antidumping review and preliminary duties on Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People’s Republic of China.

The Department of Commerce (Commerce) conducted an administrative review of the antidumping duty order on crystalline silicon photovoltaic cells, whether or not assembled into modules (solar cells), from the People’s Republic of China (China) and looked at imports from December 1, 2015, through November 30, 2016 (Period of Review, POR).

The scope of the antidumping review covered “crystalline silicon photovoltaic cells, and modules, laminates, and panels, consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including, but not limited to, modules, laminates, panels and building integrated materials. Merchandise covered by this order is classifiable under subheadings 8501.61.0000, 8507.20.80, 8541.40.6020, 8541.40.6030, and 8501.31.8000 of the Harmonized Tariff Schedule of the United States (HTSUS).”

Commerce typically covers multiple mandatory respondents. However, in the instant review, the administrative review covered only mandatory respondent, Trina Solar (Hefei) Science and Technology Co., Ltd (Trina). Commerce treated the various Trina entities: Changzhou Trina Solar Energy Co., Ltd./Trina Solar (Changzhou) Science and Technology Co., Ltd./Yancheng Trina Solar Energy Technology Co., Ltd./Changzhou Trina Solar Yabang Energy Co., Ltd./Turpan Trina Solar Energy Co., Ltd./Hubei Trina Solar Energy Co., Ltd., as one single entity.

As a result of their review, Commerce preliminary found that Trina sold subject merchandise in the United States at prices below normal value during the Period of Review and is therefore subject to a duty of 61.61%.

All other exporters of crystalline silicon photovoltaic cells will be subject to the China-wide entity rate of 238.95%.

As the findings are preliminary, interested parties still have 30 days from January 9th, 2018 to submit case briefs.

The entity wide rate of 238.95% for imports of crystalline silicon photovoltaic cells from China highlight why it is important for all manufacturers, producers, exporters, importers or other interested parties to enter an appearance with Commerce and request a review, file a separate rate application or certification, scope requests, or other actions to protect their interests.

The full notice from the Federal Register can be found here.

If you are a producer, importer, exporter of crystalline silicon photovoltaic cells and have any questions about how these preliminary ADD/CVD orders effect your company and business, call David Hsu’s office at 713.932.1540, mobile phone at 832.896.6288 or email at attorney.dave@yahoo.com.

 

U.S. Department of Commerce Issues Preliminary Duties On Chinese Solar Cells.

pexels-photo-356049.jpegIn a notice posted on the Federal Register here, the U.S. Department of Commerce (Commerce) has preliminarily found that “Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People’s Republic of China”, will be subject to preliminary countervailing duties.

Commerce determined that countervailable subsidies are being provided to producers and exporters of crystalline silicon photoltaic cells, whether or not assembled into modules (solar cells) from the People’s Republic of China (China).

The scope of the order covers crystalline silicon photovoltaic cells, and modules, laminates, and panels, consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including, but not limited to, modules, laminates, panels, and building integrated materials.

The two mandatory respondents and their respective subsidy rates include Canadian Solar Inc. and its Cross-Owned Affiliates - 13.72% and Changzhou Trina Solar Energy Co., Ltd. and its Cross-Owned Affiliates - 10.93%. Non-selected companies under review have a subsidy rate of 12.64%

If you or someone you know imports crystalline silicon photovoltaic cells from China and they have questions about how this order affects them, please call David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.

Givens & Johnston Secures Favorable Scope Ruling Regarding Pipe Spools.

Pipe Spools

Givens & Johnston PLLC recently secured a scope ruling excluding certain pipe spools manufactured in the People’s Republic of China (PRC) from Chinese anti-dumping duties (ADD) and countervailing duties (CVD). The exclusion covers pipe spools fabricated from non-Chinese originating pipe and pipe fittings (e.g. Japanese, Korean, U.S., etc.). In 2016, the ITA and Customs determined that all pipe spools fabricated in PRC were within the scope of the ADD & CVD orders applicable to Chinese pipe and pipe fittings as part of the ITA’s Westlake scope ruling decision.

In the Westlake case, the ITA declined to apply a substantial transformation analysis to the fabrication of pipe spools. Instead, the ITA used a mixed media analysis that looked at the components individually rather than as part of a whole. In Westlake, the ITA held that the pipe and pipe fittings fabricated into a pipe spool continue to have the same characteristics of pipe, so the ITA continued to treat them as pipe for ADD & CVD purposes. More recently, the ITA used the same method of analysis, except determined that because the non-Chinese origin pipe spool components were not subject to Chinese ADD & CVD, the fabrication into pipe spools did not change this result.

The full text of the scope ruling can be found here.

This ruling is crucial to companies who fabricate goods in the PRC from non-Chinese originating components and to any importers interested in importing pipe spools that are not subject to Chinese ADD & CVD. If you have any questions regarding how this ruling may affect you or your business, please give Givens & Johnston a call:

950 Echo Lane, Suite 360
Houston, Texas 77024
Phone: (713) 932-1540
Fax: (713) 932-1542

US Department of Commerce Self-Initiates ADD/CVD Investigation on Alloy Aluminum Sheet from China.

Aluminum Antidumping

According to a press release issued by the US Department of Commerce on November 28, 2017; the Commerce Department has self-initiated an ADD/CVD investigation of imports of alloy aluminum sheet from China. This action is noteworthy as most ADD/CVD investigations are brought forward by US manufacturers – with the last self-initiated ADD investigation occurring in 1985 on semiconductors from Japan.

The merchandise subject to investigation is common alloy aluminum sheet that is flat-rolled having a thickness of 6.3 mm or less but greater than 0.2 mm, in coils or cut-to-length, regardless of width. Alloy aluminum sheet is usually used in business, construction, transportation, appliances etc.

While the initiation of the case is unique, the investigation itself will follow any other trade remedy investigation. Look for a preliminary decision on or before January 16, 2018.