GPX Tires. The end of CVD from NME's?

When this case was first decided and remanded to the agency, I thought then that it was pretty remarkable. See my blog from 2009. It was remarkable because the court decided that the when applying antidumping and countervailing trade remedies for non market economies, the margins for the additional duties could not be double counted. If they could not be double counted I did not see how they could be counted at all.

There are three types of trade remedies in US law: 1) countervailing remedies covered in 19 USC 1671, 2) antidumping remedies covered in 19 USC 1672, and 3) unfair practices cover under 19 USC 1337. Of these the first two are used most frequently. They both create the imposition of additional duties to products deemed in violation.

Countervailing duties are extra duties on the subsidies that the foreign governments give to their exporters.  For example, if a foreign government pays a company to export a product, then the amount of that payment is added on to the duty amount as a trade remedy. This balances out the government's subsidy so that companies can compete fairly despite that government's subsidy.

Antidumping duties are extra duties on products being imported, at less than fair market values, as determined by two different methods. The preferred method is the difference between the market price in the country of exports an the imported price. When there is not enough information to accurately establish a home 'market' price then a normal value may be constructed.Then the margin is the difference between the normal value and the imported price.

The second method of calculation antidumping duties is used when the economy the goods come from is considers a 'non market economy' or state controlled economies (NMEs). Then the price is constructed by using comparable surrogate prices,. In this method presumes that government meddling int he prices is so pervasive that the export market price is unreliable.

For many years the agency charged with enforcing the trade remedies refused to apply countervailing duties to antidumping cases, where the NME method of calculating  was used. Many US importers challenged this decision and the court ruled that is was a permissible interpretation of the statute, to refrain from imposing countervailing duties on products where, the NME method of calculating antidumping duties was used. (See Georgetown Steel) But he court in those years never said the agency could not apply countervailing duties only that is was within their discretion not to apply them.

In 2007 the Agency, Commerce Department, began trying to add countervailing duties to antidumping cases where NMEs were involved. Currently the major NME is China. Since then there have been quite a few cases of joint countervailing and antidumping cases being made against Chinese products. The GPX tire case is one of them.

The plaintiffs, US importers and Chinese importers, in this case challenged the Commerce Department's imposition of countervailing and antidumping duties arguing that it amounted to double counting of the countervailing duties. The court agreed in GPX I and remanded back to the agency to come up with an acceptable method to insure that the countervailing duties would not be double counted.

Well at long last the commerce depart has came back its chosen methodology and the court found that it was not able to prove that it could eliminate the double counting. In GPX II  the court found that the commerce department was not able to show it could eliminate the double counting and order the commerce department to forgo the countervailing duties.

The decision will likely be appealed and if the appellate agrees with the ITC it could mean the end of countervailing duties for all other Chinese countervailing cases as well.

This is a list of the current extra countervailing duties for goods from China. The list has the shipper names with duty rates. There are additional antidumping cases for these which are not listed.

1. Circular welded stainless pressure pipe C-570-931
1.  Countrywide rate 1.1%
2. Winner Stainless Steel Tube 1.1%
3. Froch Enterprises 299.16%
2. Circular welded carbon quality steel line pipe C-570-935
3. Citric Acid case C-570-938
1. Countrywide 8.14%
2. TTCA Cop., Ltd 12.68%
3. Yixing Union Biochemical Co. 3.6%
4. Anhui BBCA Biochemical 118.95%
4. Prestressed Concrete Steel C570-946
1. Countrywide 27.64%
2. Fasten Group Import and Export 9.42%
3. Jiangyin Hongyu Metal Products 9.42%
4. Fasten Group Corporation 9.42%
5. Jiangyin Walsn Steel Cable Co., Ltd. 9.42
6. Jiangyin Hongshen Co., Ltd. 9.42%
7. Xinhua Metal Products Co., Ltd. 45.85%
8. Xinyu Iron and Steel Joint Stock Limited Company 45.85%
9. Xingang Iron and Steel Joint Stock Limited Liability Corporation 45.85%
5. Kitchen Appliance Shelving and Racks C-570-942
1. Countrywide rate 13.3%
2. GuangDong Wireking 13.3%
3. Asber Enterprises 170.82%
4. Ghangzhou Yixiong Metal Products Co., Ltd. 149.91%
5. Foshan Winleader Metal Products 149.91%
6. Kingsun Enterprises149.91%
7. Yuyao Hanjun Metals Works 149.91%
8. Zhongshan Iwatani Co. Ltd 149.91%
   
6. Laminated woven sacks C-570-917 
1. Country Wide 226.85%
2. Shandaon shougang Jiayuan Chun Company Ltd 352.82 %
3. Zibo Aifudi Plastic OPackaging Co. Ltd 29.54%
4. Han Shing Chemical Co. Ltd 223.74%
5. Ningbo Yong Feng Packaging Co., Ltd. 223.74%
6. Shandong Qilu Plastic Fabric Group. Ltd 304.4%
7. Lightwalled rectangular pipe and tube C-570-915
1. Countrywide 15.28%
2. Zhangjiagang Zhongyuan Pipe Making co Ltd 15.28%
3. Kunshan Lets Win Steel Machinery Co., Ltd. 2.17%
4. Qingdao Xiangxing Steel Pipe Co., 200.58%
8. Lightweight thermal paper C570-921
1.  Countrywide 13.63%
2. Guangdong Guanhao High Tech 13.63 %
3. Shanghai Hanhong Paper Co., Ltd 0%
4. Shanzhen Yuanming Industrial Development Co., Ltd. 138.53%
5. MDCN Technology 124.93%
6. Xiamen Anne Paper Co., Ltd. 124.93%
9. New Pneumatic Off Road Tires C-570-913 
1. Countrywide 5.62%
2. Guizhou Tyre Co., Ltd. 2.45%
3. Tianjin United Tire and Rubber International Co., Ltd. 6.85%
4. Hebei Starbright Tire Co., Ltd. 14% (GPX International Tire)
10. Raw Flexible Magnets C-570-923 
1. Countrywide 109.95%
2. China Ningbo Cixi Import Export Corporation 109.95%
3. Polyflex Magnets Ltd. 109.95%
4. Jingzhou Meihou Flexible Magnet Company Ltd. 109.95%
11. Sodium Nitrate C-570-926 
1. Countrywide 169.01%
2. Shanxi Jiaocheng Hongxing Chemical Co., Ltd. 169.01%
3. Tianjin Soda Plant 169.01%
12. Steel Grating. C-570-948
1. Country wide 62.46%
2. Ningbo Jiulong Machinery Manufacturing Co., Ltd. 62.46%
13. Tow Behind Lawn Groomers C570-940 
1. Countrywide 13.3%
2. Princeway Furniture 0%
3. Jiashan Superpower Tools Co., Ltd. 13.3%
4. Maxcheif Investments Ltd 264.98%
5. Qingdao Ea Huabang Instrument Co., Ltd. 264.98%
6. Qingdao Hundai Tools Co., Ltd. 264.98%
7. Qingdao Taifa Croup Co., Ltd. 264.98%
8. World Factory Inc. 264.98%