Initiation of Countervailing Action
- Actions can be initiated by any interested party or the Secretary of Trade and Industry/Agriculture under sufficient evidence.
- Petition must be verified and filed on behalf of the domestic industry.
Petition Requirements
- Must identify domestic industry affected, employment, capital investment, production, sales, capacity.
- Must specify details about the imported subsidized product and subsidy amount.
- Supported by domestic producers comprising more than 50% of total production; investigations begin if at least 25% support.
Review and Dismissal of Petition
- Secretary reviews petition within 10 days to decide whether to initiate investigation or dismiss.
- Dismissal is notified to the Secretary of Finance, Customs Commissioner, and concerned parties.
- Legal and technical assistance provided to domestic producers.
Notice and Customs Action
- Petition summary sent immediately to Secretary of Finance, who instructs Customs to hold import entries.
- Customs reports import data every 10 days.
Notification and Response by Interested Parties
- Interested parties notified within 5 days; must respond within 30 days with evidence.
- Failure to respond permits preliminary determination based on available facts.
Confidentiality and Foreign Government Notification
- No public disclosure unless investigation is initiated.
- Exporting country government notified prior to investigation.
Preliminary Determination
- Made within 20 days after responses received.
- If prima facie case exists, a provisional countervailing duty in form of cash bond imposed.
- Cash bond held in trust, applied for up to 4 months.
Termination of Investigation
- Investigation terminated if subsidy amount is de minimis or injury negligible.
Formal Investigation by Tariff Commission
- Commission conducts formal investigation after receiving case records.
- Public notice issued in two newspapers and interested parties notified.
- Focus on subsidy nature, material injury extent, and causal relationship.
- Commission may require information; failure to cooperate results in facts-based determination.
- Investigation is summary and may bypass strict rules of evidence.
Definition of Subsidy
- Exists if government provides financial contribution or income/price support.
- Includes direct funds, loan guarantees, foregone revenue, provision of goods/services, purchases, payments to funding mechanisms, and other contributions.
- Excludes duty or tax exemptions/refunds unless amounts are discounts or reductions.
Specificity of Subsidy
- Subsidy is specific if limited to certain enterprises or geographical regions.
- Presumed non-specific if eligibility follows objective, automatic, and neutral criteria.
- Factors like long-term use by limited recipients or large subsidies indicate specificity.
Determination of Injury
- Requires examination of import volume increase, price effects, and impact on domestic producers.
- Considers economic indicators such as sales decline, profits, employment, investment capability, and government support burden.
- Considers other injury causes like non-subsidized imports, demand changes, competition, technology, and export performance.
- Threat of injury assessed on likelihood and imminence based on factual evidence.
Cumulation of Imports
- Possible when subsidized imports from multiple countries meet thresholds and competitive conditions justify combined assessment.
Public Notices and Consultations
- Required at initiation, conclusion, preliminary/final determination, acceptance/termination of undertakings, and final termination.
Voluntary Undertakings
- Exporters or exporting governments may offer price revisions or subsidy removals.
- Commission evaluates and Secretary may suspend or continue investigations.
- Undertaking lapses if no subsidy or injury found; continues if positive findings support it.
Final Determination and Orders
- Commission completes investigation within 120 days, informing parties of essential facts prior to final decision.
- Secretary issues order within 10 days to impose countervailing duty if affirmative.
- Duties collected include previously posted cash bond; excess returned without interest.
- Unfavorable orders lead to bond release after appeal period.
Duration and Review of Countervailing Duty
- Duty remains only as long as necessary to offset injury caused by subsidization.
- Commission may review duty motu proprio or upon petition after six months.
- Reviews must be completed within 90 days.
- Duties terminate after 5 years unless timely reviewed and continuation justified.
Judicial Review
- Affected parties may appeal to Court of Tax Appeals within 30 days.
- Filing does not suspend duty imposition or collection.
- Appeals subject to tax case procedural rules.
Definitions
- Domestic Industry: producers of like products, excluding related parties to exporters/importers.
- Interested Parties: exporters, producers, importers, governments, trade associations, labor unions.
- Like Product: product identical or closely resembling the imported article.
Rulemaking and Administrative Support
- An inter-agency committee (DTI, Agriculture, Finance, Tariff Commission, Customs) shall establish implementing rules.
- Special units in DTI, Agriculture, and Tariff Commission to handle countervailing cases.
- Duties collected fund these agencies' capacity-building.
Severability and Repealing Provisions
- Invalid provisions do not affect remaining law.
- Previous inconsistent laws and orders repealed or amended.
Effectivity
- Law takes effect 15 days after publication in two newspapers.