Law Summary
Initiation of Countervailing Actions
- Actions may be initiated by any interested person or by the Secretary under certain conditions.
- A verified petition must be filed, supported by evidence showing subsidy and injury.
- Petitions require details about the domestic industry, subsidy particulars, importers/exporters, and related facts.
Petition Requirements and Support Thresholds
- Must show support from domestic producers representing over 50% of production related to the petition.
- Investigation starts if proponents have at least 25% of production.
- Methodologies include surveys and consultation with industry groups for large numbers of producers.
Processing and Preliminary Review of Petitions
- Secretary must review petitions within 10 days for sufficiency.
- Insufficient petitions are dismissed with notification to finance and customs authorities.
- Legal and technical assistance is provided to domestic producers.
Coordination with Customs and Finance
- On receipt of petition, the Secretary informs the Secretary of Finance who directs Customs to monitor and secure import entries for the allegedly subsidized goods.
- Customs must report import data regularly.
Notification and Response from Interested Parties
- Interested parties receive petition copies and have 30 days to respond.
- Lack of response results in preliminary determinations based on available facts.
- Confidentiality maintained unless investigation is initiated.
Preliminary Determination and Provisional Measures
- Within 20 days of response, Secretary determines if prima facie case exists.
- If so, a provisional cash bond equal to estimated subsidy is imposed alongside duties.
- Cash bond held in trust up to four months pending final decision.
- Preliminary findings forwarded to the Tariff Commission.
Termination of Investigation for De Minimis Subsidies
- Investigation can be terminated at any stage if subsidy amount is de minimis or volume/injury negligible.
Formal Investigation by Tariff Commission
- Formal proceeding initiated after preliminary findings.
- Notices published and interested parties notified.
- Commission determines subsidy nature/amount, injury extent, and causal links.
- Investigation conducted summarily without strict evidentiary rules.
- Parties must provide information or face decisions based on available facts.
Definitions and Criteria for Subsidies
- Subsidy includes direct financial transfers, foregone revenues, goods/services provision (non-infrastructure), purchases, payments to funds, and other financial contributions.
- Exemptions include duty or tax exemptions/refunds on exports and limited drawbacks.
Specificity of Subsidy
- Subsidies limited to certain enterprises or regions are specific.
- Subsidies with criteria that are automatic, neutral, and economic in nature are generally non-specific.
- Wide discretion in granting subsidies and disproportionate amounts may indicate specificity.
Determination of Material Injury
- Injury assessed based on subsidized import volumes, price effects, economic factors affecting domestic producers, and other concurrent injurious factors.
- Threat of injury requires clear, imminent evidence considering import growth, pricing impact, exporter capacity, inventory levels, and nature of subsidy.
Treatment of Potential New or Growing Domestic Industries
- Studies identify industries with potential growth or establishment threatened by subsidized imports.
- Relevant data includes employment, investment, production, and sales.
Cumulation of Imports for Assessment
- Multiple countries’ subsidies assessed cumulatively if subsidy above de minimis, volume non-negligible, and competitive conditions warrant.
Public Notices and Consultations
- Government of exporting country notified at key investigation stages including initiation, conclusion, determinations, acceptance or termination of undertakings.
Voluntary Undertakings
- Exporters/governments may offer price revisions or subsidy elimination.
- Undertaking acceptance may suspend or terminate investigations.
- Undertakings lapse if no subsidy/injury found but continue if affirmed.
Final Determination and Imposition of Duties
- Commission reports final findings within 120 days.
- Parties informed of key facts before decision.
- Secretary issues countervailing order within 10 days of affirmative findings.
- Cash bonds applied against duties; excess refunded without interest.
- Negative findings lead to release of cash bonds.
Duration and Review of Countervailing Duties
- Duties remain only as long as necessary to offset subsidies causing injury.
- Reviews may be initiated by Commission, Secretary, or interested parties after 6 months.
- Reviews completed within 90 days.
- Duties terminated within 5 years unless review finds continued risk of injury/subsidy.
Judicial Review
- Aggrieved parties may appeal to Court of Tax Appeals within 30 days.
- Appeal does not stay duty imposition or collection.
Definitions
- "Domestic Industry" includes producers or groups representing major production, excluding related importers/exporters.
- "Interested Parties" include exporters, importers, producers, trade associations, and labor unions.
- "Like Product" means identical or closely resembling products.
Administrative Framework
- An inter-agency committee (Trade and Industry, Agriculture, Finance, Tariff Commission, Customs) issues implementing rules.
- Special units created in Trade and Industry, Agriculture, and Tariff Commission to handle countervailing cases.
- Duties collected fund the capability enhancement of these agencies.
Separability and Repealing Clauses
- Invalid provisions do not affect the remaining law.
- Inconsistent laws and regulations repealed or amended accordingly.
Effectivity
- Law takes effect 15 days after publication in two newspapers of general circulation.