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Court Upholds Affirmative Injury Determination in Diamond Sawblade Antidumping Investigation
On January 13, 2009, the United States Court of International Trade (CIT) issued a final ruling in the appeal of the antidumping investigation into diamond sawblades from China and Korea, upholding the affirmative injury determination made by the U.S. International Trade Commission (ITC).
The case was brought by the Diamond Sawblades Manufacturers Coalition (DSMC), a 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’sInternational Trade Practiceand counsel to the DSMC, stated, “We are extremely happy with the Court’s decision, which will permit U.S. producers to receive the protection from injurious imports that they have long deserved.”
In 2006, the 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 agency. In May 2008, the ITC reversed its earlier decision, ruling in favor of the U.S. producers. The Court has now affirmed that remand determination, clearing the way for an antidumping duty order on Chinese and Korean sawblades.
Now that the Court has approved the 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% for China and 26.55% for Korea. According to Pickard, these rates only reflect a deposit requirement for imports, and a final assessment of the actual duties owed will not take place for over a year. “Imports that enter with a relatively low deposit rate could have a final tariff liability substantially higher than the deposit rate,” Pickard said.
Pickard also indicated that imports entering the U.S. 10 days after the date of the CIT’s determination will likely be subject to antidumping duty liability. Pickard said, “The Department of Commerce is required to notify U.S. Customs and Border Protection of the recent Court decision which will result in ‘suspension of liquidation’ on approximately January 23.” Upon the suspension of liquidation Customs will refuse to assess final customs duties on the Chinese and Korean imports as they enter the U.S. Rather, all imports that enter the U.S. after this date will be liable for antidumping duty deposits.