June 19, 2015

Department of Commerce Issues Final Margins on Certain Passenger Vehicle and Light Truck Tires from China

By Douglas Heffner and Richard Ferrin

For your information, the U.S. Department of Commerce (DOC) has issued final antidumping (AD) and countervailing duty (CVD) determinations on certain passenger vehicle and light truck tires from China.  For details regarding the AD and CVD margins calculated by the DOC, along with the scope of the investigations, please see the DOC’s fact sheet, found here. Importers of merchandise covered by the scope of the AD and CVD final determinations should ensure that they are making cash deposits of AD and CVD duties at the updated AD and CVD cash deposit rates.

The next step is for the U.S. International Trade Commission (ITC) to issue a determination in connection with its final injury investigation.  If the ITC makes a negative determination, the investigations will be terminated. If the ITC makes an affirmative determination, the DOC will issue AD and CVD orders.

Note that, because the United States operates a retrospective AD and CVD duty assessment procedure, the AD and CVD cash deposits paid at the time of entry may not be an importer’s final liability for AD and CVD duties.  Rather, final liability is established pursuant to the final results of an administrative review, which could occur a year or more after the initiation of any administrative review.  In other words, an importer’s liability could be higher or lower than the cash deposit rate it paid at the time of entry, meaning that the importer could owe additional AD/CVD duties or get a refund of AD/CVD duties, depending on the results of the administrative review.

For further information, contact Douglas J. Heffner or Richard P. Ferrin or any other member of the Customs and International Trade Team. For a link to other Customs and Trade publications, click on the publications tab at the following link, Customs & International Trade Team.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

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