Whirlpool appeals the DOC's CVD rate for Kromet - threatens existing CVD on all products...
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Trade Alert!!

Whirlpool Appeal of the Department of Commerce's countervailing duty rate for Kromet could devastate existing tariffs

February 26, 2014 -- Earlier this month Whirlpool launched a suit against the U.S. Department of Commerce (DOC) appealing the DOC 15.6% countervailing duty (CVD) rate assigned to Kromet.  This appeal, if successful, could ultimately result in lower overall CVD margins for the other 62 Chinese extruders that were granted the “all others” rate in the First Administrative review of the CVD order.  The appeal will be heard by the U.S. Court of International Trade this spring, and a decision is expected in late 2014 or early 2015. 

How can this appeal impact all extruders?  Well, during the First Administrative Review, the Department of Commerce picked two respondents out of the 62 Chinese extruders seeking to lower their CVD margin.  These two respondents serve as proxies for the entire group of 62 companies.  Kromet was one of those companies.  The other was Changzhou Changzheng Evaporator Co. Ltd., who ultimately received a CVD rate of 1.5%.  A weighted average of the two was calculated and used as the new CVD rate for the 62 other Chinese extruders.  In the event this appeal is successful and Kromet’s CVD rate is substantially lowered, the result will be a lower CVD rate for all the Chinese extruders that sought a special rate. 

On the other hand, if the appeal is defeated, then the 10.6% CVD “all others” rate the DOC assigned to these 62 exporters will stand since Kromet’s 15.6% rate will not be lowered.  Moreover, the issues Kromet is challenging go to the heart of the Department’s subsidy calculation and, if successful, will make the calculation of CVD margins that adequately remedy the degree of subsidization more difficult.  That is why we must fight this appeal and prevail as an industry.  Since this will be an ‘off-budget’ expense to the Fair Trade Group, we must rally as an industry and raise the needed funds.  This week we launched our detailed plans for the 2014 funding program.
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