Guest article authored by David Craven, an expert on AD/CVD matters and Martindale-Hubbell A-V rated attorney, who serves Diaz Trade Law clients in an Of Counsel capacity.
Do you use, or are you planning to use PC Wire Strand?
PC Wire Strand is a critical raw material used in the production of pre-stressed concrete. The availability of such a product is now at serious risk, which would make producing pre-stressed concrete difficult and expensive. A trade action has just been filed, seeking to impose anti-dumping and countervailing duties on imports from fifteen countries (Argentina, Columbia, Egypt, Indonesia, Italy, Malaysia, Netherlands, Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, Turkey, Ukraine and the United Arab Emirates). This investigation is being conducted in parallel by two separate Federal Agencies; The International Trade Commission which decides whether the U.S. industry is being injured by the imports and the U.S. Department of Commerce which decides the amount of any duties.
These investigations normally take approximately 12 months, with provisional duties in this matter being collected as early as May and no later than the end of October. While the duties are calculated based on the exporter’s information, it is the importer who is ultimately liable for such duties. Once in place, these duties can remain in effect for many years.
Since the duty rates are based on the actions of the foreign producers and exporters, why should an importer care? Mainly, because these duties can directly impact both the cost and availability of PC Wire Strand, both imported and domestic. These investigations will result in increased costs and limited supplies.
How can an importer prevent this from disrupting its business?
Check by asking these questions.
- Is the imported product included in the list of products that may be subject to enhanced duties? The scope of the order is detailed and is prepared by the domestic industry to cover targeted products. If there are ambiguities in scope, they must be addressed in the early stages of the investigation.
- When will these enhanced duties take effect? The date on which these enhanced duties take place vary greatly depending upon the progress of the investigation. Products imported before this starting data will not be impacted by the enhanced duties.
- What will happen to goods that are already have on the water or in process at the mill?
The law does not provide a direct exception for goods already on the water or in process at the mill. Rather, the date of entry, a formal date set by Customs, controls. It is important to understand the process by which a date of entry is set and what steps can be taken to control this entry date?
What steps can be taken to minimize my risk?
- Understanding the risks and identifying the solutions will minimize the risks.
- How does an importer ensure that its foreign producer is taking this seriously? Many foreign producers and exporters do not understand their obligations and the process. Once an importer is aware of the process.
- What are the traps that must be avoided? The trade laws are full of little traps for unsuspecting importers. The details of the transactions should be reviewed to avoid these traps and pitfalls.
These actions are frequently complex and normally move quickly. This action covers 15 different countries and is particularly large. It is important to also move quickly to ensure that all options remain viable.
Diaz Trade Law is here to help you navigate these troubling waters, minimize the impact of these duties, and reduce the impact on your business. Our experienced professionals have helped many importers steer a clear path avoiding the worst of these impacts.
Diaz Trade Law regularly counsels all sizes of global clients in import and/or export compliance services. Our expertise is in assisting companies in successfully complying with the vast U.S. federal laws and regulations for import and export transactions. Contact us today at firstname.lastname@example.org or 305-456-3830 to be advised with the best options for your specified case.