§1677j Prevention of Circumvention of Antidumping and Countervailing Duty Orders

Summary

Allows the agency that enforces antidumping and countervailing duty orders to treat foreign parts or goods as covered by those orders when people try to get around them by finishing or assembling products in the United States or in another country. If the product sold in the U.S. is the same kind as something already under an order, and it is put together in the U.S. from parts made in the targeted foreign country, and the U.S. work is minor while the foreign parts are a big part of the product’s value, the agency can include those imported parts in the order. To decide if the U.S. work is “minor,” the agency looks at things like investment, research and development, the production process, facilities, and whether U.S. work adds only a small amount of value. The agency also considers trade patterns, any ties between makers and assemblers, and whether imports of the parts rose after the original investigation. The same idea applies when products are finished in a different foreign country before coming to the U.S.: the agency may include them if the finishing abroad is minor, the foreign-made portion is a large part of the value, and the agency decides action is needed to stop evasion. Small changes in form or appearance are included unless the agency says they do not need to be. New products developed later can be covered if they are basically like the original product in looks, buyer expectations, use, sales channels, and advertising; they cannot be excluded just for having a different tariff code or extra functions unless those extra functions are the main use and cost. Before including such goods, the agency must notify the U.S. International Trade Commission, which can ask for talks within 15 days and give written advice within 60 days if a serious injury issue exists. The agency should try to finish these determinations within 300 days of starting the inquiry.