AN ACT STRENGTHENING THE MECHANISMS FOR THE IMPOSITION OF COUNTERVAILING DUTIES ON IMPORTED SUBSIDIZED PRODUCTS

Case Overview and Summary

Summary of Republic Act No. 8751

Strengthening Mechanisms for Imposition of Countervailing Duties

- Allows imposition of countervailing duty on imported subsidized products causing material injury to domestic industry (Sec. 1)
- Initiation of action by petition from interested party or by Secretary of Trade and Industry/Agriculture (Sec. 1(A))
- Petition requirements: domestic industry details, import details, subsidy details (Sec. 1(B))
- Preliminary determination by Secretary within 20 days of answer from interested parties (Sec. 1(E))
- Provisional countervailing duty in form of cash bond equal to estimated subsidy amount (Sec. 1(E))
- Formal investigation by Tariff Commission to determine subsidy amount, injury, and causal link (Sec. 1(G))
- Determination of existence and specificity of subsidy (Sec. 1(H), 1(I))
- Determination of material injury or threat based on import volume, price effects, domestic industry effects (Sec. 1(J))
- Cumulation of imports from multiple countries allowed under certain conditions (Sec. 1(K))
- Public notices and consultation with exporting country at various stages (Sec. 1(L))
- Voluntary undertaking by exporter/exporting country to revise price or eliminate subsidy (Sec. 1(M))
- Final determination by Commission within 120 days, disclosure to interested parties (Sec. 1(N))
- Imposition of countervailing duty by Secretary within 10 days of affirmative final determination (Sec. 1(O))
- Countervailing duty remains in force only as long as necessary to counteract subsidization (Sec. 1(P))
- Review of continued imposition of duty upon request or after 5 years (Sec. 1(P))
- Judicial review by Court of Tax Appeals within 30 days of order (Sec. 1(Q))
- Definitions of "domestic industry", "interested parties", and "like product" (Sec. 1(R))
- Administrative support and funding for implementation (Sec. 2)
- Separability clause (Sec. 3)
- Repealing clause (Sec. 4)
- Effectivity clause 15 days after publication (Sec. 5)