Articles

Divisions

Affirmative preliminary determination of “critical circumstances” for Thailand

12/31/2013

Critical Circumstances can be determined by the Department of Commerce if there is a surge of merchandise that enters the US after a trade case has been filed.

Because of a huge surge of threaded rod shipments from Thailand in October and November, the DOC has instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of threaded rod from Thailand that were made on or after October 2, 2013.

This means that imports of threaded rod from Thailand that were entered on or after Oct. 2, 2013, are potentially liable for dumping duties at the rate of 74.90% for Tycoons Worldwide Group and 68.41% for all other Thai producers and exporters.

U.S. Customs and Border Protection will also now require importers to make cash deposits of dumping duties on all entries of threaded rod from Thailand that are entered on or after Dec. 31, 2013. The cash deposits will also be at the rate of 74.90% for Tycoons and 68.41% for all other Thai producers and exporters.

We have reviewed the October import data, and it appears that we also have grounds for filing a “critical circumstances” allegation against India.

The preliminary declaration of “critical circumstances” highlights the risks of importing merchandise subject to AD / CVD investigations. We know from experience that many importers are not willing to take the risk — however small — that duties may be applied retroactively.