H.R. 4105: To apply the countervailing duty provisions of the Tariff Act of 1930 to nonmarket economy countries, and for other purposes

H.R. 4105

To apply the countervailing duty provisions of the Tariff Act of 1930 to nonmarket economy countries, and for other purposes

Sponsor
Rep. Dave Camp

Date
March 6, 2012 (112th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

On Tuesday, March 6, 2012, the House is scheduled to consider H.R. 4105, a bill to apply the countervailing duty provisions of the Tariff Act of 1930 to nonmarket economy countries, under a suspension of the rules, requiring a two-thirds majority vote for passage.  The bill was introduced on February 29, 2012, by Rep. Dave Camp (R-MI) and was referred to the House Committee on Ways and Means.

Bill Summary

H.R. 4105 would amend the Tariff Act of 1930 to authorize the Department of Commerce to apply countervailing duty (CVD) provisions to nonmarket economy (NME) countries.

The bill would also provide for an adjustment (reduction) of antidumping duties if a countervailable subsidy has been identified in a nonmarket economy country and can be demonstrated to have reduced the average price of an imported class or kind of merchandise.

Background

The following summary is from a recent report by the Congressional Research Service:

Two major U.S. trade remedies are antidumping (AD) law, which combats the sale of imported products at less than their fair market value, and countervailing duty (CVD) law, which aims to offset foreign government subsidization of imported goods. If dumped or subsidized imports are found to cause or threaten material injury to a domestic industry, antidumping or countervailing duties will be imposed. Both remedies are available when goods are imported from competitor countries with free market policies. As of 1984, however, only AD law had been applied to goods from nonmarket or "transitional" economies. With the continued economic growth of some of these economies, such as China and Vietnam, pressure increased on the U.S. government to use both trade remedies more aggressively against unfair imports from these countries.

AD law has been amended several times since its inception in 1921. With Congress's continued statutory guidance, the Department of Commerce (DOC) has implemented several different methodologies for applying AD law, including using surrogate country data when the fair market value of a product in the originating country is not readily ascertainable. CVD law had not been used against NMEs, however, since DOC concluded in 1984 that it could not determine subsidization in such situations. In 1986, the U.S. Court of Appeals for the Federal Circuit (CAFC), in Georgetown Steel Corp. v. United States, upheld DOC's interpretation of the CVD statute as reasonable. While DOC had generally refused to review CVD petitions against NME countries following this determination, it accepted a petition seeking a CVD on imports of coated free-sheet paper from China in 2006. DOC distinguished the current Chinese economy from the Soviet-style economies at issue in Georgetown Steel and found that the imported Chinese paper was subsidized. Because the U.S. International Trade Commission did not make the requisite final affirmative material injury determination, CVDs were not imposed. Other CVD petitions were successful, however, resulting in the imposition of 24 CVD orders on NME country merchandise.

World Trade Organization (WTO) agreements, together with the WTO Accession Protocols of China and Vietnam, acknowledge that AD and CV duties may be imposed on these countries' goods, and that surrogate country data may be used to calculate dumping margins or subsidization. In a WTO case brought by China, however, the WTO Appellate Body found in April 2011 that the simultaneous imposition by the United States of AD and CV duties on the same Chinese merchandise, where surrogate country data was used to establish the fair market value of the goods in the AD case, remedied the same subsidization twice or "double counted" in violation of U.S. WTO obligations. The United States is expected to comply with this decision by April 25, 2012. More broadly, the U.S. Court of Appeals for the Federal Circuit, on December 19, 2011, held that CVDs may not be imposed on NME goods under any circumstance, finding in GPX Intl Tire Corp. v. United States that Congress had legislatively ratified DOC's 1984 statutory interpretation and thus DOC may no longer interpret the statute to permit such duties and must seek a statutory amendment if it wishes to impose CVDs on NME products in the future. The CAFC affirmed a lower court decision that also prohibited DOC from imposing CVDs on NME goods, but did so on the ground that DOC had failed to eliminate double counting, the same practice at issue in the WTO case. DOC is preparing a new WTO-compliant determination in the investigations challenged by China in the WTO. The executive branch is reviewing the CAFC decision, having until March 5, 2012, to request a rehearing en banc, and has also asked Congress to enact legislation to remedy the court's ruling.

According to the Committee on Ways and Means, this legislation is aimed at overturning the recent decision by the Court of Appeals for the Federal Circuit in GPX v. United States, which held that U.S. law prohibits the Department of Commerce from applying CVDs to NMEs, including China. The CAFC decision stated that, in legislating in the area of trade remedies but not addressing an earlier Commerce practice of not applying CVD law to certain Soviet-style NMEs, Congress had implicitly ratified the practice and stripped Commerce of discretion to apply CVD law to NMEs entirely.

Additional background on the legislation is available here from the Committee on Ways and Means.  The Committee has also provided the following facts about current CVD cases:

  1. List of the Current CVD Orders/Investigations for China and Vietnam

China CVD Orders as of March 5, 2012

Aluminum Extrusions

Circular Welded Austenitic Stainless Pressure Pipe

Circular Welded Carbon Quality Steel Line Pipe

Circular Welded Carbon Quality Steel Pipe

Citric Acid and Citrate Salt

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

Drill Pipe

Kitchen Appliance Shelving and Racks

Laminated Woven Sacks

Light-Walled Rectangular Pipe and Tube

Lightweight Thermal Paper

Magnesia Carbon Bricks

Multilayered Wood flooring

Narrow Woven Ribbons with Woven Selvedge

New Pneumatic Off-The-Road Tires

Oil Country Tubular Goods

Potassium Phosphate Salts

Prestressed Concrete Steel Wire Strand

Raw Flexible Magnets

Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe

Sodium Nitrite

Steel Grating

Tow-Behind Lawn Groomers and Parts Thereof

 

China CVD Investigations as of March 5, 2012

Certain Steel Wheels

Galvanized Steel Wire

High Pressure Steel Cylinders

Crystalline Silicon Photovoltaic Cells

Utility Scale Wind Towers

 

Vietnam CVD Orders as of March 5, 2012

Polyethylene Retail Carrier Bags

 

Vietnam CVD Investigations as of March 5, 2012

Circular Welded Carbon-Quality Steel Pipe

Steel Wire Garment Hangers

 

2.   Product Coverage for current CVD orders/investigations from China and Vietnam are as follows:

China:  - consumer goods, steel products, agricultural products, chemicals, and energy products. 

Vietnam:  – consumer goods and steel products

 

Non-Market Economy Countervailing Duty Petitioner Locations by State

Alabama

  • Light-Walled Rectangular Pipe and Tube  
    • Southland Tube  
  • Circular Welded Carbon-Quality Steel Line Pipe
    • United States Steel Corporation
  • Steel Grating
    • Alabama Metal Industries Corporation
  • Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
    • United States Steel Corporation
  • Multilayered Wood Flooring
    • Howell Hardwood Flooring

Arkansas

  • Circular Welded Carbon-Quality Steel Pipe
    • TMK IPSCO
  • Circular Welded Carbon-Quality Steel Line Pipe
    • Maverick Tube Corporation
  • Oil Country Tubular Goods
    • TMK IPSCO
  • Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
    • TMK IPSCO
  • Drill Pipe
    • TMK IPSCO
  • Aluminum Extrusions
    • Sapa Extrusions, Inc.

California

  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company  
    • Western Tube & Conduit Corporation
  • Light-Walled Rectangular Pipe and Tube  
    • California Steel and Tube
    • Hannibal Industries
    • Maruichi American Corporation
    • Searing Industries
    • Vest, Inc.  
    • Western Tube & Conduit Corporation
  • Prestressed Concrete Steel Wire Strand
    • Sumiden Wire Products Corp.
  • Steel Grating
    • Alabama Metal Industries Corporation
  • Magnesia Carbon Bricks
    • Resco Products, Inc.
  • Aluminum Extrusions
    • Frontier Aluminum Corporation
    • Kaiser Aluminum Corporation
  • Galvanized Steel Wire
    • Davis Wire Corporation

Colorado

  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company  
  • Oil Country Tubular Goods
    • Evraz Rocky Mountain Steel
  • Steel Grating
    • Alabama Metal Industries Corporation

Delaware

  • Steel Grating
    • Alabama Metal Industries Corporation

Florida

  • Circular Welded Austenitic Stainless Pressure Pipe
    • Outokumpu Stainless Pipe, Inc.
  • Polyethylene Retail Carrier Bags
    • Superbag Corporation
  • Steel Grating
    • Alabama Metal Industries Corporation
  • Aluminum Extrusions
    • Benada Aluminum of Florida Inc.

Georgia

  • Aluminum Extrusions
    • William L. Bonnell Co. Inc.
    • Profile Extrusion Company
    • Sapa Extrusions, Inc.
  • Potassium Phosphate Salts
    • Prayon Inc.
  • Multilayered Wood Flooring
    • Shaw Industries Group, Inc. (Dalton, GA)

Idaho

  • Polyethylene Retail Carrier Bags
    • Superbag Corporation

Illinois

  • Circular Welded Carbon-Quality Steel Pipe
    • Allied Tube & Conduit  
    • JMC Steel Group
    • Wheatland Tube
  • Light-Walled Rectangular Pipe and Tube
    • Allied Tube & Conduit
    • Leavitt Tube Company LLC
  • New Pneumatic Off-The-Road Tires
    • Titan Tire Corporation
  • Circular Welded Austenitic Stainless Pressure Pipe
    • Outokumpu Stainless Pipe, Inc.
  • Citric Acid and Citrate Salts
    • Archer Daniels Midland Company
    • Tate & Lyle Americas, Inc.
  • Tow-Behind Lawn Groomers and Parts Thereof
    • Agri-Fab, Inc.
  • Oil Country Tubular Goods
    • TMK IPSCO
  • Steel Grating
    • Alabama Metal Industries Corporation
  • Drill Pipe
    • TMK IPSCO
  • Aluminum Extrusions
    • Sapa Extrusions, Inc.

Indiana

  • Kitchen Appliance Shelving and Racks
    • SSW Holdings, Inc
  • Polyethylene Retail Carrier Bags
    • Superbag Corporation
  • Magnesia Carbon Bricks
    • Resco Products, Inc.
  • Aluminum Extrusions
    • William L. Bonnell Co. Inc.
    • Sapa Extrusions, Inc.
  • Certain Steel Wheels
    • Accuride Corporation

Iowa

  • Circular Welded Carbon-Quality Steel Pipe
    • TMK IPSCO
  • New Pneumatic Off-The-Road Tires
    • Titan Tire Corporation
  • Oil Country Tubular Goods
    • TMK IPSCO
  • Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
    • TMK IPSCO
  • Drill Pipe
    • TMK IPSCO

Kansas

  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company

Kentucky

  • Circular Welded Carbon-Quality Steel Pipe 
    • TMK IPSCO, Inc.  
  • Kitchen Appliance Shelving and Racks
    • SSW Holdings, Inc
  • Oil Country Tubular Goods
    • TMK IPSCO, Inc.  
  • Steel Grating
    • Fisher & Ludlow
  • Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses
    • NewPage Corporation
  • Drill Pipe
    • TMK IPSCO, Inc.

Louisiana

  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company
  • Laminated Woven Sacks
    • Bancroft Bag, Inc.
  • Aluminum Extrusions
    • Sapa Extrusions, Inc.

Maine

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

Maryland

  • Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses
    • NewPage Corporation
  • Aluminum Extrusions
    • Hydro Aluminum North America, Inc.

Massachusetts

  • Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses
    • Sappi Fine Paper North America

Michigan

  • Light-Walled Rectangular Pipe and Tube
    • Atlas Tube
  • Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses
    • NewPage Corporation
  • Aluminum Extrusions
    • Kaiser Aluminum Corporation
  • Certain Steel Wheels
    • Hayes Lemmerz International, Inc.
  • Galvanized Steel Wire
    • National Standard, LLC/DW-National Standard-Niles, LLC

Minnesota

  • Citric Acid and Citrate Salt
    • Cargill, Incorporated
  • Prestressed Concrete Steel Wire Strand 
    • American Spring Wire Corp.
  • Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses
    • NewPage Corporation
  • Aluminum Extrusions
    • Alexandria Extrusion Company

Mississippi

  • Laminated Woven Sacks 
    • Hood Packaging Corporation  
  • Multilayered Wood Flooring 
    • Baker’s Creek Hardwood Floors, Inc.  

Missouri

  • Light-Walled Rectangular Pipe and Tube 
    • Bull Moose Tube  
    • EXLTUBE
  • Potassium Phosphate Salts
    • ICL Performance Products
  • Steel Grating
    • Alabama Metal Industries Corporation
  • Certain Steel Wheels
    • Hayes Lemmerz International, Inc.
  • Galvanized Steel Wire
    • Mid-South Wire Company
  • Polyethylene Retail Carrier Bags
    • Superbag Corporation

New Jersey

  • Multilayered Wood Flooring
    • Mannington Mills, Inc.
  • Sodium Nitrite
    • General Chemical LLC
  • Circular Welded Carbon-Quality Steel Pipe
    • Wheatland Tube Company

North Carolina

  • Aluminum Extrusions
    • Sapa Extrusions, Inc.
  • Prestressed Concrete Steel Wire Strand
    • Insteel Wire Products Company
  • Magnesia Carbon Bricks
    • Resco Products, Inc.

Ohio

  • Aluminum Extrusions
    • Aerolite Extrusion Company
    • Kaiser Aluminum Corporation
  • Circular Welded Carbon-Quality Steel Pipe
    • Wheatland Tube
  • Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses
    • NewPage Corporation
  • Laminated Woven Sacks
    • Mid-America Packaging, LLC
  • New Pneumatic Off-The-Road Tires
    • Titan Tire Corporation
  • Oil Country Tubular Goods
    • V&M Star LP
  • Prestressed Concrete Steel Wire Strand
    • American Spring Wire Corporation
  • Raw Flexible Magnets
    • Magnum Magnetics Corporation
  • Magnesia Carbon Bricks
    • Resco Products, Inc.
  • Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
    • United States Steel Corporation
    • V&M Star LP
  • Certain Steel Wheels
    • Hayes Lemmerz International, Inc.

Oklahoma

  • Oil Country Tubular Goods
    • TMK IPSCO
  • Galvanized Steel Wire
    •  National Standard LLC/DW-National Standard-Niles LLC
    • Oklahoma Steel & Wire Company, Inc.
  • Circular Welded Carbon-Quality Steel Pipe
    • TMK IPSCO
  • Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
    • V&M Star LP

Oregon

  • Crystalline Silicon Photovoltaic Cells
    • SolarWorld Industries America, Inc.
  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company

Pennsylvania

  • Aluminum Extrusions
    • Sapa Extrusions, Inc.
  • Circular Welded Carbon-Quality  Steel Pipe
    • Wheatland Tube
    • United States Steel Corporation
    • Allied Tube & Conduit
    • TMK IPSCO
  • Sharon Tube Company
  • Circular Welded Carbon-Quality Steel Line Pipe
    • United States Steel Corporation
  • Circular Welded Austenitic Stainless Pressure Pipe
    • Marcegaglia USA Inc.
  • Drill Pipe
    • TMK IPSCO
  • Light-Walled Rectangular Pipe and Tube
    • Allied Tube & Conduit
  • Narrow Woven Ribbons with Woven Selvedge
    • Berwick Offray
  • Oil Country Tubular Goods
    • TMK IPSCO
    • United States Steel Corporation
    • Wheatland Tube Corp.
  • Steel Grating
    • Fisher & Ludlow
  • Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
    • United States Steel Corporation
    • TMK IPSCO
  • Magnesia Carbon Bricks
    • Resco Products, Inc.
  • Galvanized Steel Wire
    • Johnstown Wire Technologies, Inc.
  • Polyethylene Retail Carrier Bags
    • Superbag Corporation

South Carolina

  • Multilayered Wood Flooring
    • Anderson Hardwood Floors, LLC
  • Steel Grating
    • Alabama Metal Industries Corporation
  • Polyethylene Retail Carrier Bags
    • Hilex Poly Co.

South Dakota

  • Aluminum Extrusions
    • Sapa Extrusions, Inc.

Tennessee

  • Circular Welded Carbon-Quality Steel Line Pipe
    • Maverick Tube Corporation
  • Kitchen Appliance Shelving and Racks
    • Nashville Wire Products
  • Aluminum Extrusions
    • William L. Bonnell Co. Inc
  • Circular Welded Austenitic Stainless Pressure Pipe
    • Bristol Metals, L.P.
  • Prestressed Concrete Steel Wire Strand
    • Sumiden Wire Products Corp.
  • Galvanized Steel Wire
    • Mid-South Wire Company, Inc.

Texas

  • Circular Welded Carbon-Quality Steel Line Pipe
    • Maverick Tube Corporation
    • Tex-Tube Corporation
    • United States Steel Corporation
  • Aluminum Extrusions
    • Kaiser Aluminum Corporation
    • Western Extrusions Corp.
  • Drill Pipe
    • VAM Drilling USA, Inc.
    • Texas Steel Conversions, Inc
    • Rotary Drilling Tools
  • Laminated Woven Sacks
    • Polytex Fibers Corporation
  • Oil Country Tubular Goods
    • V&M Star LP
    • Maverick Tube Corporation
  • Prestressed Concrete Steel Wire Strand
    • American Spring Wire Corp.
  • High Pressure Steel Cylinders
    • Norris Cylinder Company
  • Circular Welded Carbon-Quality Steel Pipe
    • TMK IPSCO
    • Northwest Pipe Company
  • Polyethylene Retail Carrier Bags
    • Superbag
  • Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
    • United States Steel Corporation
    • V&M Star LP

Utah

  • Aluminum Extrusions
    • Futura Industries Corp.
    • Sapa Extrusions, Inc.
  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company
  • Steel Grating
    • Alabama Metal Industries Corporation

Virginia

  • Aluminum Extrusions
    • Kaiser Aluminum Corporation
  • Multilayered Wood Flooring
    • Nydree Flooring
  • Polyethylene Retail Carrier Bags
    • Superbag Corporation

Washington

  • Steel Grating
    • Alabama Metal Industries Corporation
  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company

West Virginia

  • Magnesia Carbon Bricks
    • Resco Products, Inc.
  • Circular Welded Carbon-Quality Steel Pipe
    • Northwest Pipe Company

Wisconsin

  • Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses
    • NewPage Corporation
    • Appleton Coated LLC
  • Circular Welded Austenitic Stainless Pressure Pipe
    • Felker Brothers Corp.
  • Laminated Woven Sacks
    • Coating Excellence International, LLC
  • Lightweight Thermal Paper
    • Appleton Papers Inc.
  • Multilayered Wood Flooring
    • Award Hardwood Floors
    • From the Forest

Cost

There is no CBO cost estimate available for this bill.