Commerce Issues New Proposal For Defining 'Public Bodies' In CVD Cases

摘要

The Commerce Department earlier this month issued new guidance on how it will determine whether certain Chinese entities are "public bodies," and therefore could be subject to U.S. countervailing duties (CVDs). This action represents part of the U.S. effort to implement the findings of an adverse World Trade Organization decision in which the Appellate Body sided with China and found the U.S. must do more to show that an entity is actually a "public body." Observers close to U.S. petitioners signaled that they viewed the new guidance favorably, especially if it is used as the foundation for CVD investigations moving forward. One such observer explained that Commerce essentially uses the new guidance to better explain why it views a wide variety of entities in China as "public bodies," but that it should do nothing to hinder the ability of Commerce to apply CVDs against Chinese products moving forward. Strictly speaking, the Commerce documents deal with four specific CVD cases against Chinese imports of circular welded carbon quality steel pipe, light-walled rectangular pipe and tube, laminated woven sacks and off-the-road tires. Consistent with Section 129 of the Uruguay Round Agreements Act (URAA), the documents outlined why Commerce is revising the CVD rates applicable to the four products at issue in the WTO case in order to comply with the findings.