Recent amendments to US trade remedial laws

The US amended the anti-dumping (AD) duty and countervailing duty (CVD) rules under the Tariff Act of 1930 by means of the American Trade Enforcement Effectiveness Act on 29 June. The changes brought about by the amendments and their effects on producers in the countries subject to an investigation are highlighted below.

Consequences of failure to cooperate with a request for information in an AD/CVD proceeding: Section 776 of the Tariff Act, which allows the Department of Commerce (DOC) or the International Trade Commission (ITC) to make determinations on the basis of facts available, has been amended. The amendment removes the obligation on the ITC or DOC to determine, adjust or corroborate missing information in case of non-cooperation.

The US imposes the duties to the full extent of dumping. This is an existing practice of the DOC. Codification of this practice is an attempt to legitimize the unfettered discretion exercised by the DOC in applying a higher rate of duties.

Sanjay Notani is a partner and Ambarish Sathianathan is an associate manager at Economic Laws Practice. Tanaya Sethi, an associate, assisted with research and input. This article is intended for informational purposes and does not constitute a legal opinion or advice.