February 16, 2006
In our January 18, 2006, newsletter, we indicated that January 2006 was the month in which U.S. importers and Chinese exporters for wooden bedroom furniture from China had an opportunity to ask for a review of the antidumping duty rate of specific Chinese exporters. The hope in filing such a request would be to lower the China-wide rate of 198.08% that is applicable to that specific exporter.
During the original 2004 investigation that led up to the antidumping order, Chinese exporters were permitted to respond to a Section A questionnaire requesting general company information, quantity and value of sales, etc. From these responses, Commerce selected a few Chinese suppliers as "mandatory respondents," who were required to respond to a full antidumping questionnaire. Those suppliers and exporters not selected for a full questionnaire response, but who nevertheless timely filed complete Section A responses, were considered to have "separate rate status" and were assigned a "Section A" rate, which was eventually determined to be 6.65% based on the weighted average of company-specific rates calculated for mandatory respondents. Mandatory respondents were assigned company-specific rates based on their full questionnaire responses. All other companies were assigned the China-wide rate of 198.08%.
We have learned that there have been requests filed at Commerce to review over 100 Chinese suppliers. Some of the requests were filed by the individual companies themselves. However, 57 of the suppliers were named by the U.S. domestic furniture manufacturers. Some of these Chinese companies may have previously obtained a "Section A" rate. If you would like a copy of the list with the 57 names, please send us an email with your request.
Because of the large number of applications, we believe that rates will be assigned in a manner similar to the 2004 original investigation. Commerce will once again issue all requesting companies Section A questionnaires, and then select a sample of manufacturers and exporters, who will be required to answer a full antidumping questionnaire. Thus, in the next few weeks, Commerce may be issuing Section A questionnaires to all of those who requested administrative reviews. These companies will have to provide limited general information, as well as their quantity in value of exports to the United States during the period of review (6/24/04-12/31/05). Once Commerce reviews the responses, it will select a handful of exporters as "mandatory respondents". The mandatory respondents would have to respond to a detailed questionnaire, which must be completed and timely filed. The remaining suppliers who filed complete and accurate Section A responses will receive a weighted average of the mandatory respondents' final antidumping duty rates.
Need For Respondents To File Complete, Accurate And Timely Responses To Questionnaires
If Chinese suppliers are issued a Section A questionnaire, it is very important that the responses to these questionnaires be completed and submitted to Commerce in the format and by the deadlines mandated by Commerce. In order for a Chinese company to obtain "separate rate status," it must respond to the Section A questionnaire, which includes proving that it is not under the control of the Chinese government. Commerce usually grants separate rate status to companies that submit complete and timely filed questionnaire responses. Suppliers may need professional expertise in order to complete these questionnaires. Those wishing to file responses should possibly consult with a legal expert prior to filing their responses.
If you have any questions on any of the issues raised in this newsletter, please contact Stephen Spraitzar at (415) 288-0427 or via email at firstname.lastname@example.org.
Stephen 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 © 2006 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.