Higher import duties likely on Russian goods after ITA ruling

The International Trade Administration announced on November 10 that after 20 years it was revoking Russia’s market economy status for the purposes of the ITA’s anti-dumping proceedings, a decision that will likely result in anti-dumping duties. higher on imports from Russia.

The ITA decided to maintain market economy status for Russia in October 2021, but in May 2022 said that in light of developments in the Russian economy (largely associated with its invasion of the Ukraine), reforms related to the six statutory factors governing NME determinations may have backtracked.

Reversing its previous position this week, the ITA said it had found that significant government involvement in the economy had led to distorted prices and costs in Russia that did not accurately reflect whether Russian companies were setting equitably the prices of imports into the United States. analysis of research from unbiased third-party sources” revealed a “significant pushback” by Russia on issues such as currency convertibility, how wages are determined, the foreign investment climate, government control of means of production and government control over business decisions.

The ITA stated that as a result of this change, in future anti-dumping cases involving imports from Russia, it will apply an alternative method of calculating anti-dumping duties using market-based prices and costs from a country at a comparable level of economic development that produces comparable goods. . The ITA said this approach “will ensure that the Department’s dumping calculations reflect the economic realities on the ground and that U.S. industries get the relief from unfair imports to which they are entitled under the law.”

For more information on the impacts of this change, please contact attorney Kristen Smith at (202) 730-4965 or by email.

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