Over the last several years, because of my international trade expertise, many US importers have called me because they wake up one morning and find they are liable for antidumping (“AD”) and countervailing duties (“CVD”) on a number of different products. These duties can be in the millions of dollars, when the importers simply did not know that the imported products were covered by US AD and CVD orders. One unfortunate fact is that US importers, companies that import products into the United States, are liable for AD and CVD on imports and they can be retroactively liable.
This post highlights the breadth of products currently subject to antidumping and countervailing duty orders and it thus should serve as a warning to anyone in the United States who imports products from China.
If you were an importer of a solar recharger for an RV unit, for example, would you know that the product is covered by the US AD order on solar cells from China? If you were importing curtain walls/the sides of buildings, auto parts, geodesic domes, and lighting equipment, would you know that the products were covered by US AD and CVD orders against aluminum extrusions?
In fact, the US presently has more than 130 AD and CVD orders against China and 100s of AD and CVD orders against imports from other countries. The Chinese AD and CVD orders block more than $30 billion in imports, and those AD and CVD orders can stay in place for 5 to 30 years. The orders can also expand to cover downstream products, such as curtain walls, certain solar cell consumer products, and gardening equipment.
With regards to China, more than 80 of the AD and CVD orders are against raw materials, chemicals, metals and various steel products, used in downstream US production. In the Steel area, there are AD and CVD orders against the following Chinese steel products:
carbon steel plate, hot rolled carbon steel flat products, circular welded and seamless carbon quality steel pipe, rectangular pipe and tube, circular welded austenitic stainless pressure pipe, steel threaded rod, oil country tubular goods, steel wire strand and wire, high pressure steel cylinders, non-oriented electrical steel, and carbon and certain alloy steel wire rod.
There are ongoing investigations against cold-rolled steel and corrosion resistant/galvanized steel so almost all Chinese steel products from China are blocked by US AD and CVD orders.
In addition to steel, other metal products, such as silicomanganese, metallurgical coke, magnesium, silicon metal, and graphite electrodes, which are used in downstream steel production, are also blocked by AD orders. Electrolytic Manganese Dioxide used to produce batteries is also covered, which led Panasonic to close its US battery factory and move to China. The Magnesium AD orders have led to the destruction of the US Magnesium Dye Casting industry and the movement of light weight auto parts production to Canada.
In addition to steel and metal products, chemical products, such as sulfanilic acid, polyvinyl alcohol, barium carbonate, potassium permanganate, activated carbon, glycine, isocyanurates/swimming pool chemicals, xanthan gum, citric acid, and calcium hypochlorite, are covered by orders. The AD order on sulfanilic acid led to the injury of the US optical brightening industry, which brought its own antidumping case against China.
In addition to raw materials, however, many household products are covered by AD and CVD orders, including ironing tables, steel sinks, wood flooring, wooden bedroom furniture, steel shelving, and steel cooking ware. Other consumer products covered are: tires, hand trucks, lawn groomers, steel nails, paper clips, pencils, ribbons, candles, paper products, gift wrap and heavy forged hand tools.
In addition to household products, food products, such as shrimp, honey, crawfish and garlic, are covered by AD orders against China and other countries.
At this point in time, any product being imported from China is at least somewhat import sensitive and could well be attacked by US trade actions. This means that an importer should monitor the products it imports for any potential trade sanctions. And if you the importer are hit with sanctions, know that in contrast to other legal statutes, the AD and CVD law are remedial statutes so you can request an antidumping or countervailing duty review investigation to get the rates reduced and with that your own liability for past imports.
NEW SECTION 337 INTELLECTUAL PROPERTY CASES FILED AT ITC AGAINST CHINA
On June 22, 2016, Schutz Container Systems Inc. filed a section 337 IP case at the US International Trade Commission (“ITC”) against Composite Intermediate Bulk Containers. The proposed respondent is Zhenjiang Runzhou Jinshan Packaging Factory, China.
On June 24, 2016, Excel Dryer, Inc. filed a section 337 IP case at the ITC against Hand Dryers and Housings for Hand Dryers. The proposed respondents, including Chinese companies, are: ACL Group (Intl.) Ltd, United Kingdom; Alpine Industries Inc., Irving, New Jersey; FactoryDirectSale, Ontario, CA; Fujian Oryth Industrial Co., Ltd. (a/k/a Oryth), China; Jinhua Kingwe Electrical Co. Ltd., (a/k/a Kingwe), China; Penson & Co., China; Taizhou Dihour Electrical Appliances Co., Ltd. a/k/a Dihour, China; TC Bunny Co., Ltd., China; Toolsempire, Ontario, CA; US Air Hand Dryer, Sacramento, CA; Vinovo, China; and Zhejiang Akie Appliance Co., Ltd., China.
On July 5, 2016, The Chamberlain Group Inc. filed a section 337 case at the ITC against Access Control Systems. The proposed respondents, including a Chinese company, are: Techtronic Industries Co. Ltd, Hong Kong; Techtronic Industries North America, Inc., Hunt Valley, Maryland; One World Technologies Inc., Anderson, South Carolina; OWT Industries Inc., Pickens, South Carolina; Ryobi Technologies Inc., Anderson, South Carolina; and Et Technology (Wuxi) Co., Ltd., China.
If you have any questions about these cases or about the antidumping or countervailing duty law, US trade policy, trade adjustment assistance, customs, or 337 IP/patent law in general, please feel free to contact me.