Trade Cases

Commerce Proposes Changes to AD/CVD Rules

Written by Sandy Williams

The Department of Commerce is proposing modifications to antidumping and countervailing duty regulations to make them more efficient and to create new enforcement tools to address circumvention and evasion.

In a detailed rule published in the Federal Register, Commerce proposes:

  • The creation of standalone rules governing Commerce’s conduct of circumvention inquiries. The new rules set out specific timelines, procedures for imposing duties when circumvention is found, and explicit authorization for Commerce to self-initiate.
  • The creation of rules for Commerce to assist U.S. Customs and Border Protection (CBP) in combating duty evasion. The new rules establish a procedure for Commerce to address CBP’s questions about potential evasion, implementing legislation signed into law in 2016.
  • Rules that prevent foreign companies from abusing new shipper reviews. The rules provide that if the foreign company requesting a review fails to provide evidence of bona fide sales, then Commerce can decline to initiate the review – instead of waiting until the review is already underway to obtain such evidence, as is done under Commerce’s current regulations.
  • Updated rules on scope inquiries that streamline existing procedures and expedite deadlines. These revisions also deter abuse of scope procedures by ensuring that AD/CVD duties apply to products determined to be subject to AD/CVD orders, regardless of when a scope ruling was requested.

Commerce has initiated 281 new antidumping and countervailing duty investigations under the Trump administration—a 260 percent increase from the previous administration. Currently, 431 AD/CVD orders are maintained on unfairly traded imports.

The specifics of each proposed change can be viewed in the Federal Register.  Commerce invites the public to submit comments by Sept. 14 that will be taken into consideration when issuing a final rule.

Latest in Trade Cases

Leibowitz: Could change at the ITC keep Weirton tin mill open?

The International Trade Commission (ITC) voted earlier this month against imposing antidumping and countervailing duties on imports of tin mill products from four countries. When Cliffs filed trade cases on tin mill products in early 2023, the company claimed that the failure to get massive duties on imports would result in the closure of its mill in Weirton, W.Va. We don’t know the reasoning behind this decision, only that all four sitting Commissioners voted not to impose duties. We do know that Cliffs plans to close Weirton.

Leibowitz on trade: Consumers win one at the ITC

Last week, steel consumers prevailed in a rare victory over US petitioners in trade cases on tin mill steel products. The US International Trade Commission (ITC) voted 4—0 that Cleveland-Cliffs, the sole remaining domestic producer of tin mill products (used to make containers such as “tin cans”) was neither injured nor threatened with injury by imports of competing products from Canada, China, and Germany. Imports from South Korea were found to be “negligible,” and the investigation on Korean imports was terminated.