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CITAC, international trade, imports, exports <CITAC:TimetoEndRetrospectiveAnti-DumpingandCountervailing>
     
FOR IMMEDIATE RELEASE Contact: Caitlin Andrews
December 20, 2011   Tel. 202.828.7637
   

caitlin.andrews@bgllp.com

 

CITAC: TIME TO END RETROSPECTIVE ANTI-DUMPING AND COUNTERVAILING DUTY SYSTEM

Joins U.S. Customs Advisory Committee Call for the U.S. Government
to Adopt Prospective System

 

Washington, DC – The Consuming Industries Trade Action Coalition (CITAC) congratulates the Commercial Operations Advisory Committee (COAC) for its recommendation that the United States end the retrospective system of assessment of antidumping (AD) and countervailing duties (CVD).  Counsel Lewis Leibowitz, a partner in the Washington, DC office of Hogan Lovells, issued the following statement on the recent COAC recommendation:

Implementing the COAC recommendation by jettisoning the retrospective system is the most effective step the U.S. could take to improve enforcement and collection of AD/CVD duties.  Only the U.S. employs this system where an importer takes the risk of incurring sharply higher duties that could threaten their ability to stay in business.  Retrospective assessment effectively inhibits imports when they are fairly traded because the duties are inherently unpredictable. 

This uncertainty leads to less competition in the U.S. market, even if those goods are fairly traded.  When there is less competition in the U.S. market, the price of vital inputs for U.S. manufacturers rises.  If U.S. manufacturers are paying significantly higher prices for an input than their overseas competitors, U.S. producers will lose business to these competitors.  The retrospective system thus protects domestic petitioners at the expense of downstream users, which employ many more manufacturing workers. 

Under the prospective system recommended by COAC and used by most other countries, a definitive AD/CVD duty is set at the time of entry.  If the duty is too high, the importer will not import the product.  However, if it is at a level that the importer believes is commercially acceptable, it will pay the definitive duty and import the product. ,Under a prospective system, therefore, injurious dumping or subsidization would be remedied immediately upon importation, and U.S. companies would know in advance what the actual fairly traded cost associated with each potential source is to make informed decisions regarding competitive strategies and sourcing. 

CITAC has been critical of the retrospective system for many years because it creates enormous uncertainty and does not facilitate trade or U.S. competitiveness.  The under-collection of AD/CVD duties by U.S. authorities stems largely from this uncertainty.  As COAC has rightly concluded, Customs enforcement of AD/CVD collection would be significantly improved if this change were made.  In addition, U.S. companies striving to compete in global markets would be strengthened.

 

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The Consuming Industries Trade Action Coalition (CITAC) is a Washington, DC-based trade organization with one primary objective: to ensure that consuming industries and manufacturers in the United States have access to reliable supplies of globally-priced materials necessary for those industries to produce their products.   For additional information, visit www.citac.info or contact Caitlin Andrews at (202) 828-7637 or caitlin.andrews@bgllp.com.

 

 

 

 

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