Korea Diamond Sawblades: Zero AD Rates due to Section 129 "Zeroing" Determination, Etc.
The International Trade Administration is revoking the antidumping duty order on diamond sawblades and parts from Korea (A-580-855) effective October 24, 2011, due to its determination under Section 129 of the Uruguay Round Agreements Act regarding “zeroing”. However, due to legal action, the ITA will continue to suspend liquidation for all entries, but at a zero rate.
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ITA to Continue to Suspend Liq, Set Cash Deposit Rate at Zero due to Legal Action
Although the ITA states in its notice that it will instruct CBP to discontinue the collection of AD duties and to liquidate, without regard to AD duties, all entries of the subject merchandise entered or withdrawn from warehouse for consumption on or after October 24, 2011, ITA sources have stated by telephone that outstanding legal action (temporary restraining order, preliminary injunction) require the ITA to continue to suspend liquidation. According to the ITA, the cash deposit rate will be set to zero for goods with a time of entry on/after October 24, 2011.
(In January 2011, the World Trade Organization Dispute Settlement Panel issued its findings in the dispute between the U.S. and Korea regarding U.S. “zeroing” in AD measures involving diamond sawblades and parts from Korea (DS402). The DSP concluded that the U.S. acted inconsistently with the WTO AD Agreement by using "zeroing" in determining the dumping margins. In March 2011, the U.S. stated that it intended to implement the DSB recommendation and rulings within a reasonable time. The U.S. and Korea subsequently agreed on an eight month implementation time, i.e., by October 24, 2011. Summary of WTO dispute available here)
(See notice for information on zero AD rate calculations for the mandatory respondents and the all others rate as a result of the Section 129 "zeroing" determination for this case, which lead to the revocation of the order.
See ITT’s Online Archives 11102118 for summary listing the CBP message on the Temporary Restraining Order.)
See ITT’s Online Archives 10042028 for summary of USTR’s request for comments on Korea’s request for a WTO DSP on U.S. AD zeroing.)
ITA contact -- David Layton (202) 482-0371
(FR Pub 10/28/11, ITA Case No. A-580-855)