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

Summary

Stops companies from dodging antidumping or countervailing duties by doing only small work to goods. If products sold in the United States are the same kind as goods already under an antidumping or countervailing order, and those U.S. sales come from items assembled or finished in the U.S. or in another foreign country using parts made in the country covered by the order, the agency that enforces these duties can treat the assembled goods as covered if the local assembly is minor and the original parts make up a big part of the product’s value. To decide if the assembly is “minor,” the agency must look at investment and research done where the work happened, the kind of production, the size of the facilities, and whether the local work adds only a small share of value. The agency also considers trade patterns, whether the makers are related companies, and if imports of the parts increased after the original investigation. For products developed after an investigation, the agency checks if the new product looks and is used like the original, if buyers expect the same thing, if it’s sold the same way, and if it’s advertised similarly. The agency cannot exclude a newer product just because it has 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 trade commission. The commission can ask for talks within 15 days and then give written advice within 60 days if it thinks inclusion causes a major injury issue. The agency should try to finish these circumvention inquiries within 300 days.