Recent WTO Decision May Result in Revised China
Antidumping and Countervailing Duty Rates

August 19, 2014

At the request of China, the World Trade Organization (WTO) recently reviewed and subsequently issued a decision which may require revisions by the U.S. Department of Commerce (Commerce) to rates in about 15 countervailing duty (CVD) actions. The WTO panel found that Commerce broke certain WTO rules when Commerce presumed that China state-owned enterprises are “public bodies” capable of providing subsidies. The decision, issued on July 14, 2014, can be appealed by either side (China or the U.S.) within 60 days.

The WTO agreement on subsidies and countervailing duty measures provides that where a government directs private bodies to carry out specific functions, including the provision of cheap goods, these cheap goods can be considered subsidies. However, based upon a prior WTO ruling, state ownership alone does not prove government control. The WTO panel ruled against Commerce’s “rebuttable presumption” that state-owned enterprises are public bodies capable of giving subsidies, unless evidence shows otherwise.

Rates may be revised in the following CVD orders:


Case No.

Aluminum Extrusions


Certain Circular Welded Carbon Quality Steel Line Pipe


Circular Welded Austenitic Stainless Pressure Pipe


Citric Acid and Certain Citrate Salts


Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses


Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules


Drill Pipe


High Pressure Steel Cylinders


Kitchen Appliance Shelving and Racks


Lightweight Thermal Paper


Magnesia Carbon Bricks


Oil Country Tubular Goods


Pre-Stressed Concrete Steel Wire Strand


Seamless Carbon and Alloy Steel Standard, Line and Pressure Pipe


Tow Behind Lawn Groomers and Certain Parts Thereof


If the WTO’s findings against the U.S. eventually become final, any rate changes would be prospective only. They would not affect the assessment and collection of CVD duties on prior merchandise.

If you have any questions on this issue or other countervailing or antidumping areas, please contact Steve Spraitzar at (415) 254-5988 or email him at

Steve Spraitzar is an attorney with the Law Offices of George R. Tuttle in San Francisco.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2014 by Tuttle Law Offices.

All rights reserved.  Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.



Subscribe Feedback Previous Newsletters