8 EU & Japan AD Orders: Prelim Section 129 Zero Rates for 25 Cos, Etc.

March 29, 2012 by Brian Feito|Top News

In its first step toward implementing the WTO's findings in three zeroing disputes, the International Trade Administration issued the preliminary results of its section 129 proceedings to recalculate, pursuant to the USTR's instructions, the antidumping cash deposit rates currently in effect for certain companies whose merchandise is subject to 8 AD duty orders on certain products originating from the European Union and Japan. The ITA has preliminarily found AD cash deposit rates of zero for 25 companies, and found reduced AD rates for 7 companies (one company’s rate is unchanged¹). These preliminary AD cash deposit rates are not in effect.

(On February 13, 2012 the U.S. Trade Representative instructed the ITA to implement the findings adopted by the World Trade Organization’s (WTO) Dispute Settlement Body in US-Zeroing (EC) (DS294), US-Continued Zeroing (EC) (DS350) and US-Zeroing (Japan) (DS322). In the ITA's recalculations of the AD cash deposit rates (all determined in previous administrative reviews) for the companies subject to the 8 AD duty orders at issue, the ITA is applying its new average-to-average methodology, which eliminates zeroing², that was provided for in the final modification for reviews published on February 14, 2012. (See ITT’s Online Archives 12021329 for summary of the ITA’s February 14, 2012 final rule modifying its normal methodology in AD administrative reviews.)

Preliminary Recalculated Rates Not in Effect, Case Briefs Due from Interested Parties

These preliminary AD cash deposit rates are not in effect. The ITA may modify them in the final results of this section 129 proceeding. Any recalculations will only take effect once the U.S. Trade Representative instructs the ITA to implement the final results.

Interested parties may submit case briefs and/or written comments no later than April 9, 2012, and rebuttals by April 16, 2012.

Section 129 Determinations Have Prospective Effect Only

An implemented determination pursuant to section 129 applies only with respect to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the date on which the USTR directs the ITA to implement that determination. Thus, such determinations have prospective effect only.

AD Cash Deposit Rates Preliminary Recalculated as Zero for 25 Companies

The following companies will receive a prospective AD cash deposit rate of zero for the following administrative reviews should these preliminary results remain unchanged in the final results, and the USTR direct the ITA to implement them:

Stainless steel plate in coils from Belgium (A-423-808)

2007/08 review: ArcelorMittal Stainless Belgium N.V.³;

Purified Carboxymethylcellulose from Finland (A-405-803)

2008/09 review: CP Kelco Oy

Purified Carboxymethylcellulose from the Netherlands (A-421-811)

2009/10 review: Azko Nobel Functional Chemicals B.V.; CP Kelco B.V.

Certain Pasta from Italy (A-475-818)

2009/10 review: Pastificio Lucio Garofalo S.p.A.; Molino e Pastificio Tomasello S.p.A.; Agritalia S.r.L.; Domenico Paone fu Erasmo S.p.A.; Industria Alimentari Colavita, S.p.A.; Labor S.r.L.; PAM S.p.A. and Liguori Pastificio dal 1820 S.p.A.; P.A.P. SNC Di Pazienza G.B. & C.; Premiato Pastificio Afeltra S.r.L.; Pastificio Fabianelli S.p.A.; Pastificio Riscossa F.lli Mastromauro S.p.A.; Rustichella d’Abruzzo S.p.A.
2006/07 review: F. Divella S.p.A.; Pasta Zara S.p.A. 1 and Pasta Zara S.p.A. 2; Pastificio Di Martino Gaetano & F.lli S.r.L.; Pastificio Felicetti S.r.L.
2004-05 review: Corticella Molini e Pastifici S.p.A. and Pasta Combattenti S.p.A.
2002/03 review: Pastificio Carmine Russo S.p.A. and Pastificio Di Nola S.p.A.
1998/99 review: La Molisana Industrie Alimentari S.p.A.;

Stainless steel wire rod from Spain (A-469-807)

1998/99 review: Roldan S.A.

Stainless steel sheet and strip in coils from Japan (A-588-845)

2007/08 review: Nippon Kinzoku Co., Ltd.

ITA Preliminarily Finds Reduced AD Cash Deposit Rates for 7 Companies

The following companies will receive a reduced prospective AD cash deposit rate for the following administrative reviews should these preliminary results remain unchanged in the final results, and the USTR direct the ITA to implement them (preliminary recalculated AD rate and original AD rate in parentheses):

Steel concrete reinforcing bars from Latvia (A-449-804)

2004/05 review: Joint Stock Company Liepajas Metalurgs (4.87% from 5.94%).

Certain Pasta from Italy (A-475-818)

2007/08 review: PAM S.p.A. and Liguori Pastificio dal 1820 S.p.A.(5.49% from 8.54%) ; Pastificio Lucio Garofalo S.p.A.(14.63% from 15.87%); Pasta Lensi S.r.L.⁴ (10.06% from 12.21%); Pastificio Fratelli Pagani S.p.A. (10.06% from 12.21%)
2004/05 review: Atar, S.r.L. (18.13% from 18.18%)
2003/04 review: Barilla G.e.R. Fratelli S.p.A. (19.55% from 20.68%)

¹The rate found for Solvay Solexis S.p.A. in the 2006/07 administrative review of granular polytetrafluoroethylene resin from Italy (A-475-703) remains unchanged by the preliminary recalculation.

²“Zeroing” refers to the practice of using only sales at less than fair value to determine the estimated AD duty rate, excluding all non-dumped sales from the calculation.

³The ITA preliminarily determined that Aperam Stainless Belgium N.V. is the successor-in-interest to ArcelorMittal Stainless Belgium N.V. in its ongoing AD changed circumstances review of stainless steel plate in coils from Belgium. The ITA’s final determination in this changed circumstances review, including its finding on this issue, is due by April 17, 2012.

⁴Pasta Lensi S.r.L. was found to be the successor-in-interest to Italian American Pasta Company Italia S.r.L. for purposes of determining AD (and countervailing duty) liability in the July 17, 2003 final results of an ITA changed circumstances review.

(See ITT's Online Archives 12020716 for summary of USTR announcement that the U.S. had signed agreements with the EU and Japan to end disputes over the ITA's use of zeroing methodology.

See ITT's Online Archives 07020125 for summary of WTO Dispute Settlement Body (DSB) panel ruling against the U.S. practice of zeroing in US-Zeroing (Japan) (DS322), and 08101630 for summary of WTO DSB panel ruling against U.S. zeroing in U.S.- Continued Zeroing (EC) (DS350).)