ADMINISTRATION OF A DUMPING FINDING After publication of a dumping finding in the Federal Register, dumping duties are assessed, as required by law, on an entry-by-entry basis using price comparisons on the date of purchase (non-related party transactions) or on the date of export (related party transactions), rather than comparisons made during the fair value investigation. This procedure requires that all foreign exporters furnish domestic and export pricing information including all documentations concerning factors such as discounts, advertising, warranties, distribution costs, etc. which are price-related. This information must then be verified by the U.S. Customs Representative in the exporting country. The Customs Service does not independently verify this pricing information; it only verifies that the information submitted by the foreign manufacturer corresponds to entries in the manufacturer's records. Based upon this information, Customs prepares and disseminates to all ports "master lists" containing data necessary for appraisement, and collection of dumping duties where applicable. Pricing information must be revised continually to comply with the requirement that dumping duties be assessed on the basis of present price comparisons. However, neither the statute nor the regulations indicate that pricing information is not updated on a regular basis; rather the time frame varies from case to case and frequently may occur only once a year. The procedure followed in revising price information is the same as that following publication of a dumping finding: questionnaires are again sent to the exporters and a Customs representative verifies the information following the method outlined above. The information obtained is used not only for appraisement purposes, but also enables Customs to determine whether dumping margins (and the corresponding bond requirement) require revision. Treasury has been seriously deficient in meeting its responsibility to appraise entries subject to a dumping finding on a timely basis and to assess dumping duties where applicable. In the most blatant case, entries have not been liquidated since December, 1970. Delays in liquidation may result from a number of factors: (1) refusal of the exporter to submit pricing information, (2) untimely and/or incomplete submissions of information, (3) refusal or delays on the part of the exporter in permitting verification of submissions, (4) submission of voluminous data requesting price adjustments for factors such as warranties, advertising, distribution costs, etc., and (5) inadequate staff to analyze and evaluate the information received. Although the Trade Act of 1974 amended the Antidumping Act of 1921 by providing strict time limits within which a finding of dumping must be made, it imposed no such constraints on the subsequent administration of a finding. The Trade Act further amended the antidumping statute by requiring the Secretary of the Treasury, whenever he has reason to believe that the product is sold in the home market at less than its cost of production, to use a constructed value rather than the foreign market value as a basis for determining dumping margins. Exporters are sometimes reluctant to provide Treasury with cost of production data; they fear their competitors will obtain access to it. Furthermore, neither the statute nor the regulations define with any specificity the elements to be considered in determining cost of production or constructed value. This leads to further delays in appraisement. The Antidumping Act is remedial, not punitive, in nature. Although large dumping margins may be found to exist as a result of the fair value investigation, ultimately dumping duties may not be assessed because exporters are likely to lower their home market price or raise their export price in response to a withholding of appraisement notice. However, delays in liquidation of entries caused by Treasury's inability to administer the antidumping statute in a timely fashion may delay the assessment and collection of normal entry duties MODIFICATION OR REVOCATION OF DUMPING FINDING A dumping finding can be modified or revoked either by an application to the Commissioner based upon no sales at less than fair value for a substantial time, generally 2 years, and assurances that there will be no future sales at less than fair value or at the Secretary's initiative if the dumping finding has been in existence for 4 years and the Secretary is satisfied that sales at less than fair value will not resume. After the Secretary publishes a "Notice of Tentative Determination to Modify or Revoke Dumping Finding" which results in a suspension of appraisement of merchandise pending a final determination, interested persons will be given an opportunity to present views. If the Secretary determines that a modification or termination is warranted, he publishes a "Notice of Modification or Revocation of Dumping Finding" but if he determines otherwise, he publishes a notice to that effect with the reasons therefor. Commodity Portland cement, other than white, nonstaining portland Sweden........... cement. APPENDIX A CASES IN WHICH DUMPING PETITIONS WERE FILED ON OR AFTER JAN. 3, 1975, AND DUMPING FINDINGS WERE PENDING AS OF JAN. 3, 1975 1. CASES IN WHICH DUMPING FINDING HAS BEEN PUBLISHED Date of Entries dumping liquidated finding through 1 Apr. 14, 1961 September 1973. July 12, 1961 Country Portland gray cement. Belgium.. Oct. 31, 1961 Portland cement, other than white, nonstaining portland Dominican Republic... Apr. 30, 1963 1 This reflects the most recent date for which Customs has developed the data needed to appraise entries and assess dumping duties. However, this does not indicate that in every case all entries to that date have been liquidated or that dumping duties have been collected. 2 No shipments to United States. II. CASES TERMINATED BY ITC DETERMINATION OF NO LIKELIHOOD OF INJURY IV. CASES TERMINATED BY AN ITC NO INJURY DETERMINATION AFTER A SLTFV DETERMINATION CHANGES IN TREASURY STAFF SIZE FOR HANDLING ANTIDUMPING AND COUNTERVAILING DUTY PROCEDURES August). January... 2 for tariff and trade affairs... 12 professional (7 filled as of 20 professional. October.... 35 professional (24 filled). 1 As of January. APPENDIX C TIME OUTLINE OF ANTIDUMPING INVESTIGATION Action and Time Petition filed. Customs' preliminary Investigation: 30 days. Customs' full-scale investigation: 6 months or 9 months in more complicated cases. Secretary's Final LTFV Determination : 3 months. ITC's Injury investigation and determination : 3 months. *After a determination of sales at LTFV but prior to an ITC determination, the Secretary can terminate an investigation by issuing a notice, "Revocation of Determination of Sales at LTFV and Determination of Sales at NLTFV", or he can modify his carrier determination of sales at LTFV by issuing a notice, "Modification of Determination of Sales at LTFV". EXCHANGE OF LETTERS COMMITTEE ON Ways and MEANS, SUBCOMMITTEE ON TRADE, Washington, D.C., April 6, 1977. Hon. MICHAEL BLUMENTHAL, Washington, D.C. DEAR MR. SECRETARY: As Chairman of the Subcommittee on Trade of the Committee on Ways and Means, I refer to the recent United States International |