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1 1 (June 21, 2024)

handle is hein.crs/goveptc0001 and id is 1 raw text is: Congressional Research Servt In arming the egis~ative debate since 1914 Updated June 21, 2024 Trade Remedies: Antidumping and Countervailing Duties Overv ew What are they? Antidumping (AD) and Countervailing Duties (CVD) address unfair trade practices by providing relief to U.S. industries and workers that are materially injured, or threatened with injury, due to imports of like products sold in the U.S. market at less than fair value (AD), or subsidized by a foreign government or public entity (CVD). What is the relief provided? At the end of an investigative process, in AD cases, the remedy is an additional duty placed on the imported merchandise to offset the difference between the price (or cost) in the foreign market and the price in the U.S. market. In CVD cases, a duty equivalent to the amount of subsidy is placed on the imports. Who conducts AD and CVD investigations? The U.S. International Trade Commission (USITC) determines if a U.S. industry has suffered material injury. The International Trade Administration of the Department of Commerce (ITA) determines the existence and amount of dumping or subsidy. What is the statutory authority for AD and CVD investigations? AD/CVD laws are found in Title VII of the Tariff Act of 1930 (19 U.S.C. 1671-1677n, as amended). U.S. laws and those of other World Trade Organization (WTO) members must comply with obligations under the WTO Antidumping and Subsidies Agreements. What is the value of goods currently subject to AD and CVD orders? In FY2020, $18.2 billion of imported goods were subject to AD/CVD and U.S. Customs and Border Protection (CBP) assessed approximately $1.8 billion in AD/CVD deposits and levied more than $31 million in fines and penalties for fraud, negligence, and gross negligence of AD/CVD requirements. Supporting Views. Supporters of AD/CVD actions say that they are necessary to shield U.S. industries and workers from unfair competition, and that they help to increase public support for additional trade liberalization measures. Opposing Views. Opponents, including some importers and downstream consuming industries, say that AD/CVD actions create inefficiencies in the world trading system by artificially raising prices on imported merchandise. Some U.S. exporters are also concerned because U.S. products are subject to these AD/CVD actions in foreign markets. Process How are AD and CVD investigations conducted? Investigations are conducted through an administrative process (see Figure 1) within specified time limits, which can be extended under certain conditions. Each phase of an investigation is notified in the Federal Register. What is the role of the International Trade Commission? The USITC determines whether a U.S. industry is materially injured, or is threatened with material injury, or the establishment of an industry in the United States is materially retarded, due to sales of the targeted merchandise in the U.S. market. What is the role of the International Trade Administration? The ITA is the administering authority in the statute. The ITA evaluates the petition, decides whether to initiate an investigation, determines whether dumping or subsidies exist, and calculates the amount of dumping (dumping margin) or subsidy. If an investigation results in final affirmative determinations by both the ITA and the USITC, the ITA issues an AD or CVD order directing U.S. Customs and Border Protection to collect duties on the imported merchandise. Figure I. Overview of ADICVD Investigations What are the steps in the investigative process? Initiation. After a petition is filed simultaneously with the ITA and the USITC, the ITA generally has 20 days to determine if the petition has enough information and industry support to initiate an investigation. If the ITA

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