Honey Importers Association Challenges 'Critical Circumstances' Finding in Vietnamese AD/CVD Investigation

The Department of Commerce erred in finding that critical circumstances existed in an antidumping and countervailing duty investigation concerning raw honey from Vietnam, argued the National Honey Packers and Dealers Association in an Aug. 5 complaint to the Court of International Trade (National Honey Packers & Dealers Association v. U.S., CIT #22-00194, -00195).

The complaint contests the affirmative determination of the International Trade Commission's investigations on raw honey from Argentina, Brazil, India and Vietnam, specifically the finding by the Commerce Department of "critical circumstances" in the case of Vietnamese honey. The underlying ITC investigations followed an April 2021 petition by the American Honey Producers Association (“AHPA”) and Sioux Honey Association. The ITC found in the affirmative in its preliminary investigation and scheduled a final injury investigation in December 2021. AHPA and Sioux submitted an allegation of critical circumstances with respect to honey from Vietnam to the Commerce Department. In April, Commerce found that there there were critical circumstances on honey from Vietnam

NHPDA says that the raw honey from Vietnam did not satisfy the statutory factors required for an affirmative critical circumstances determination. Unlike honey produced by NHPDA, Vietnamese honey is used in commercial applications and does not directly compete with domestically-produced honey. Therefore, argued the complaint, increased imports could not “seriously undermine” the remedial effect of the order. The “massive increase” of honey imports cited by Commerce was a reflection of seasonal patterns and "unprecedented supply chain disruptions," NHPDA said. Vietnamese honey inventories had been sold off, NHPDA said, which reflected a high demand for the product and were still small in comparison with the overall honey market. Finally, NHPDA argued that the U.S. industry was unable to meet the honey demand and the "sharp drop" in other honey imports, which indicate other factors.

The complaint asks that the court hold that the affirmative finding of critical circumstances was unsupported by substantial evidence and to remand the case to the ITC with instructions to revise its final affirmative determination of critical circumstances.