The U.S. Department of Commerce has outlined 14 new measures to strengthen trade law enforcement. Among the proposed changes:

• Currently, individual companies from a foreign country were excused from AD/CVD duties by demonstrating that they were not dumping or receiving subsidies for a certain period of time. The new proposal would allow for companies to be removed from the process only upon the normal country-wide expiration of those duties.
• Starting as early as when Commerce makes a preliminary determination on an AD/CVD investigation, a new proposed measure will require importers to post cash deposits rather than bonds to facilitate entry of their goods and services into the United States. Currently, once an initial affirmative determination is made in an AD/CVD case, importers are able to post a bond in the amount of the estimated duties owed. However, experience has shown that in certain circumstances, the amount of the bond proved inadequate to cover the ultimate AD/CVD liability.  Under this proposal, Commerce will ensure that importers will bear full responsibility for any future duties.
• Additionally, to address a range of methodological issues unique to antidumping (AD) proceedings involving non-market economy countries, Commerce is proposing updates to its practice that will more closely capture the realities of how entities function in a non-market economy.  In this context, Commerce is proposing to adjust its antidumping calculation to account for export taxes or value added taxes included in the U.S. price that are not rebated upon export, just as in cases involving market economy countries.  Where such taxes are present, this proposed change would result in an increase in antidumping margins.

This effort is definitely a step in the right direction.  It’s also helpful that the Administration has stepped up trade enforcement on dumped and unfairly subsidized imports of tires and steel pipe.  Simply put, enforcing U.S. trade law works.  As an AAM study has found, enforcing laws against dumping and subsidies have a net benefit for the U.S. economy. However, the U.S. trade deficit with China continues to climb, and action is urgently needed to address one of the biggest problems confronting U.S. manufacturers, China’s ongoing currency manipulation.  The clock is ticking, and until the Administration and Congress take strong action, the U.S. will continue to lose jobs due to China’s predatory practices.

Read more about the Commerce Department's new measures.

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