Read the Letter to DHS Secretary Challenging First Sale, Referenced in Feb 11, 2007 TDM
Read the Federal Register Notice.
Read the Presidential Proclamation on Pocketing Rules Change
Read the information on U.S. Product Safety Legislation
Read the notice and announcement of comment opportunity
Read the USITC Federal Register Notice.
Read the letter on China Trade Bills.
Read the "Action Plan" referenced in Nov 7, 2007 TDM.
USA-ITA response to Federal Register notice requesting public comment on proposed procedural guidelines on goods from countries produced by child or forced labor.
Business Community Sends Letter To Congress Urging Balance On China Legislation
Read the USDA Press Release on Product Safety
Read the Press Poll on Product Safety
Read the Presidential Proclamation
Referenced in the August 6, 2007 TDM.
referenced in July 31, 2007 TDM
Read the letter to the Committee on Finance, US Senate on S. 1607
Vietnam Formally Cancels Export License Requirement
Letter to House of Representatives on eight-month extension of the Andean Trade Promotion and Drug Eradication Act
Petition to CITA from the Government of the Dominican Republic Regarding the Commercial Availability of Certain Fabrics
USA-ITA Submits Comments In Support of Recognition of Market-Oriented Enterprises
USA-ITA Submits Comments on the Limited Economic Effect of the Korea FTA
Read the letter sent by six members of the House Committee on Ways and Means to Secretary Gutierrez expressing their concern about the disruption to trade created by the Vietnam
Import Monitoring Program. Referenced in TDM of May 2, 2007.
Click here to view the letter.
Comments by USA-ITA Regarding Rules of Practice and Procedure for Investigations Relating to Commercial Availability Under the African Growth and Opportunity Act Docket No. Misc.-023
Click here to view the comments.
The attached testimony of most of the witnesses at this hearing follow.
Filed Comments by Gary Ross on behalf of USA-ITA.
Comments filed by Le Xuan Duong on behalf of VITAS
Comments filed by M.Nicely on behalf of KITA
Comments filed by R.Shulman on behalf of J.C. Penney
Comments filed by S. Lester on behalf of RILA
Comments filed by S. Lamar on behalf of AAFA
Comments filed by T.Vakerics of Vietnam Producers Exporters Group
Comments filed by Wilbur Ross on behalf of International Textile Group
Re: 2000 WTO Ministerial Decision on Duty-Free Quota -Free Market Access for the least developed countries 72 Fed. Register2316 (Jan 18, 2007)
The attached comments are filed on behalf of the U.S. Association of Importers of Textiles and Apparel.
February 5, 2007
"10 + 2"
February 7, 2007
Comment On Proposed Modification to the U.S. Department of Commerce’s
Calculation of Weighted Average Dumping Margins in Investigations
On behalf of the member companies, the U.S. Association of Importers of Textiles and Apparel, USA-ITA, hereby responds to the Committee’s request for public comment on the U.S. Department of Commerce’s planned modification of the calculation of the weighted average dumping margins in antidumping investigations. USA-ITA greatly appreciates the Committee’s request for public comment.
USA-ITA has more than two hundred member companies, including manufacturers, distributors, retailers, importers and related service providers, such as shipping lines and customs brokers. The member companies source textile and apparel products from around the world. Imports of textile and apparel products into the United States total more than $92 billion in the most recent one year period, making the fair operation of the antidumping laws of particular concern.
The Department of Commerce’s plan to modify its method of calculating dumping margins is in response to several decisions by the World Trade Organization, under the aegis of the Dispute Settlement Understanding, finding that the current practice by the United States is not in compliance with WTO rules. Specifically, the WTO has repeatedly found that the Department’s practice called “zeroing,” used in calculating dumping margins, violates the WTO Agreements. Both because those decisions by the Appellate Body under the WTO are correct and because it is important that the United States, as a member of the WTO, comply with its terms and the decisions of its dispute settlement system, especially if we expect other members to similarly honor their commitments, the Department of Commerce should, without any further delay, modify its calculation methodology to comply with the WTO decisions.
I. The Decisions of the WTO Are Proper
Zeroing is a technical, but significant aspect of the calculation of a dumping margin in the United States. Under the U.S. zeroing methodology, dumping margins are frequently inflated, or even created when they would not otherwise exist at all.
Dumping generally refers to a situation in which the price at which goods are sold in the United States, the export market, is less than the price at which they are sold in the home market of the producer, or in a third market, or less than the costs of production. However, in the course of antidumping investigations, the Department often finds instances in which the prices at which goods sold in the United States are above the home market, or third market price or the cost of production. In other words, in those instances, the goods clearly are not dumped. At issue in zeroing is how those non-dumped sales are considered. Under the U.S. zeroing practice, in situations in which the U.S. sales price is the greater of the two values being compared, a “negative” dumping margin arises, but instead of using that negative margin to calculate an overall weighted average dumping margin, the Department converts that negative number to a zero. By discarding all negative dumping margins, and giving an exporter no credit for non-dumped sales, the effect is to artificially inflate the overall margin calculated for the exporter. A higher dumping margin means a higher antidumping duty is imposed, and it is the U.S. importer who must pay that greater amount. The WTO has found that the practice of zeroing is unfair and biased, and that it violates several provisions of the WTO Agreements to which the U.S. is a signatory.
II. It Is In the Interests of the United States To Abide By the WTO
The United States should comply with the WTO’s rulings and abandon the zeroing practice. Repeatedly and consistently, the WTO has ruled that zeroing is impermissible. While some may try to paint a particular decision by the WTO’s Appellate Body as an aberration, that is clearly not the case. Numerous times, the Appellate Body has reached the same inescapable conclusions regarding the U.S. zeroing practice.
We expect our trading partners to comply with unfavorable WTO decisions, and it is therefore essential that the United States also comply with such decisions. The United States has been successful in winning important and controversial cases against other WTO Members, and the United States has pressed those countries to comply in good faith with those rulings. The United States cannot expect our trading partners to comply with the rulings of the WTO if we refuse to do so ourselves, particularly where there is a consistent line of WTO decisions.
Implementation of the WTO decisions is also good public policy, and good for American consumers. Zeroing is harmful to U.S. consumers and to producers of goods that use imported components. The result of zeroing is simply to require importers of finished goods and of components to increase their prices in order to cover the artificially inflated dumping margins.
Conclusion
USA-ITA lauds the decisions by the WTO condemning the practice of zeroing and requiring the United States to recognize in its dumping calculations instances in which there are negative dumping margins. At long last, the Department has finally taken steps to comply with the WTO rulings and abandon the zeroing practice, at least in some situations. There is no legitimate basis for any further delay. The Department originally announced that it would implement corrected methodology by January 23, but this has now been delayed until February 22. The Department is acting properly in deciding to abandon the zeroing practice.
Respectfully submitted,
Laura E. Jones
Executive Director
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