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Decision Not to Include Safeguard Tariffs as Costs
in Antidumping Duty Calculations

On April 6, Import Administration announced its decision not to treat safeguard tariffs (201 duties) as a cost in the dumping margin calculations.

The issue was raised in several cases, including the ongoing administrative review of the antidumping duty order on stainless steel wire rod from South Korea. In this case, the U.S. importer, whose price to an unaffiliated U.S. buyer was used to calculate export price, was required to pay 201 duties. The petitioner argued that these tariffs constituted a cost that should be deducted from the U.S. price.

In September 2003, the Department published a Federal Register notice requesting public comment on the treatment of 201duties (and the related issue of whether to deduct countervailing duties) in the antidumping duty calculations. The Department received extensive comments from a variety of parties, including domestic producers, U.S. importers, U.S. consumers, and foreign producers.

After fully and carefully reviewing the legal and policy questions involved in this issue, the Department concluded that the U.S. antidumping law does not intend for the deduction of safeguard tariffs from U.S. prices in calculating dumping margins.

Although the law clearly requires the deduction of normal import duties for dumping calculations, the Department believes that safeguard tariffs cannot be considered normal import duties. These tariffs are imposed only under special circumstances for the express purpose of providing relief from serious injury due to increased imports. Deducting safeguard tariffs from the export price in calculating dumping margins would effectively increase the safeguard remedy; in some cases providing a double remedy. Further, it would create a situation where fairly traded imports could become liable for antidumping duties simply due to the imposition of safeguard tariffs.

The Department's decision on this issue is articulated in our Notice of Final Results of Administrative Review /Decision Memorandum, which may be found on Import Administration's website: www.ia.ita.doc.gov.

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