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19-May-2017 9:43 AM

US Department of Commerce initiates investigation of imports of civil arcraft from Canada

US Department of Commerce Secretary Wilbur Ross announced (18-May-2017) the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether imports of 100 to 150 seat civil aircraft from Canada are being unfairly dumped in the US and whether Canadian producers are receiving alleged unfair subsidies. The investigations were initiated following a petition filed by The Boeing Company on 27-Apr-2017 seeking relief of planned imports of Canadian civil aircraft. If the Commerce Department determines that Canadian civil aircraft are being dumped into the US market and/or receiving unfair government subsidies and the US International Trade Commission determines that dumped and/or unfairly subsidised Canadian imports of civil aircraft into the US are causing harm to the US industry, the Commerce Department will impose duties on those imports in the amount of the dumping and/or unfair subsidisation found to exist. Details include:

  • Relation to Delta Air Lines order: Although Canadian civil aircraft subject to these investigations have not yet been imported into the US, Bombardier in Apr-2017 announced the sale of aircraft to the airline valued in excess of USD5 billion;
  • Dumping margin: The estimated dumping margin alleged by the petitioner is 79.82% and the unfair subsidies are estimated to be 79.41%. Commerce has initiated an investigation into 14 alleged subsidy programmes;
  • Next steps: During the Commerce Department investigations into whether Canadian civil aircraft are being dumped and subsidised, the US International Trade Commission will conduct its own investigations into whether the US industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before 12-Jun-2017. If the ITC preliminarily determines that there is threat of injury then the Commerce Department investigations will continue, with a preliminary countervailing duty determination in Jul-2017, followed by a preliminary antidumping determination in Oct-2017, unless these deadlines are extended;
  • If determination of subsidisation is reached: If the Commerce Department preliminarily determines that dumping or subsidisation is occurring, then it will instruct US Customs and Border Protection to start collecting cash deposits from all US companies importing the subject civil aircraft from Canada. Final determinations by the Commerce Department in these cases are scheduled for Oct-2017 for the countervailing duty investigation, and Dec-2017 for the antidumping duty investigation, but those dates may be extended;
  • If no determination of subsidisation is reached: If either the Commerce Department does not find that products are being dumped or unfairly subsidised, or the US International Trade Commission does not find in its final determination there is harm to the US industry, then the investigations will be terminated and no duties will be applied. [more - original PR]

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