Key Points
- On May 9, 2023, Commerce issued proposed regulations that would expand the agency's authority to enforce trade remedy laws in several substantive and procedural respects.
- Interested parties have until July 10, 2023 to submit comments.
The U.S. Department of Commerce ("Commerce") published "Regulations Improving and Strengthening the Enforcement of Trade Remedies Through the Administration of the Antidumping and Countervailing Duty Laws" in the Federal Register on May 9, 2023 ("Proposed Regulations"). The proposed new rules cover a variety of substantive and procedural issues related to Commerce's administration of antidumping (AD) and countervailing duties (CVD) proceedings under Title VII of the Tariff Act of 1930, as amended (the "Act"). Comments are due no later than July 10, 2023. We provide below a summary of the most significant changes included in the Proposed Regulations that, if adopted, would greatly expand Commerce's authority to enforce AD and CVD laws and regulations.
Foreign Government Inaction that Benefits Foreign Producers
The Proposed Regulations would give Commerce new tools to address foreign governments' inaction that benefit foreign producers in the context of both AD and CVD proceedings. For example, the Proposed Regulations would codify Commerce's practice of treating non-collection or deferred payments of fees, fines, or penalties as countervailable subsidies.
In addition, when selecting benchmark data to determine the existence and amount of subsidies, Commerce would be able to consider evidence of a foreign government's weak enforcement of laws governing human rights, labor rights, environmental protections and intellectual property. Because government inaction...
