Background on AD/CVD Investigations
Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. The domestic industry initiating the investigation is known as the petitioner while the foreign industry participating in the investigation is known as the respondent.
On April 21, 2021, the American Honey Producers and the Sioux Honey Association (“petitioners”) filed a petition with the USITC and Commerce alleging that certain honey imports from five countries are sold in the United States at less than fair value. The countries named in the petition are India, Brazil, Argentina, Ukraine, and Vietnam. The petitioners alleged an AD margin of approximately 34-99% for India, 115% for Brazil, 17-22.5% for Argentina, 10.5-95% for Ukraine, and 207% for Vietnam.
Scope of Petition
The United States has previously investigated honey and there is an extant order on all honey from China. This investigation covers a different product range as it covers raw honey imported in packages greater than 5 pounds (bulk) and does not cover processed honey or honey imported in retail packaging. The limited scope of this investigation is an unusual decision. We believe that the scope is so limited because of potential weaknesses in the cases. As it also ignores the higher priced processed honey industry, it could result in a shift of more product into the processed honey channel and eventually lead to a case on processed honey.
Estimated Schedule of Investigations
The USITC will issue its preliminary determination in 45 days. Commerce should initiate this case in 20 days, and the date of the preliminary determination, which controls the date of duty deposit, will be either September 28, 2021 if the case is not extended, or November 17, 2021 if the case is found to be complicated and thus extended. The order, if issued, will be issued sometime between February 2, 2022 and May 23, 2022.
What You Should Do
AD/CVD investigations can result in determinations adverse to respondent interests for years that could effectively prohibit access to the U.S. market. Failure to effectively participate in investigations can put exporters and importers at a significant disadvantage.
Diaz Trade Law and its experienced network of Of Counsel experts have many years of experience and a strong track record of success on AD/CVD matters. Diaz Trade Law represents its clients in the following AD/CVD services:
- Initial investigations
- Annual administrative reviews
- Sunset reviews
- Calculation and legal analysis of dumping calculation methodology in both market economy and non-market economy cases
- Scope ruling requests
- New shipper reviews
- Circumvention inquiries
- Appeals of determinations
Diaz Trade Law has significant experience on AD/CVD proceedings. If you would like to have Diaz Trade Law represent you on this or any other AD/CVD matter, contact Diaz Trade Law today at firstname.lastname@example.org or 305-456-3830.