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Ruling Expected in Diamond Sawblade Antidumping Investigation
On September 25, 2008, the United States Court of International Trade (CIT) heard oral argument in the appeal of the antidumping investigation into diamond sawblades from China and Korea, completing the briefing phase of the appeal. A ruling from the court is expected shortly.
The case was brought by the Diamond Sawblades Manufacturers Coalition (DSMC), an ad hoc trade association of U.S. producers of diamond sawblades, who alleged that unfairly priced Chinese and Korean sawblades injured the U.S. industry. Daniel B. Pickard, a partner in Wiley Rein’s International Trade Practice and counsel to the DSMC, stated, “We are optimistic that the CIT will affirm the determination that imports of these diamond sawblades threaten material injury to U.S. producers.”
In 2006, the U.S. International Trade Commission (ITC) ruled that the U.S. diamond sawblade industry was not threatened with injury because of Chinese and Korean imports. However, the CIT ruled in February 2008 that the ITC’s determination could not withstand judicial review, and remanded the case back to the federal agency. In May 2008, the ITC reversed its earlier decision, ruling in favor of the U.S. producers. The parties involved in the appeal have now finished presenting comments and argument on the new determination to the CIT.
If the CIT approves the ITC’s new injury determination, the Department of Commerce will issue an antidumping duty order covering all future imports of Chinese and Korean sawblades, cores and segments. The antidumping duty margins calculated by the Department of Commerce for these products are as high as 164.9 percent for China and 26.55 percent for Korea. According to Pickard, these rates only reflect a deposit requirement for imports, and a final determination as to the actual duties owed will not take place until approximately a year later. “Imports that enter with a relatively low deposit rate could have a final tax liability substantially higher than the deposit rate,” Pickard said.
Additionally, an affirmation by the CIT could also affect imports that have already entered the country. “Due to the highly unusual facts of this case, we may be requesting retroactive application of the antidumping duties. Thus, imports that are entering the U.S. today may end up being covered by the antidumping duties,” Pickard stated.