New Antidumping and Countervailing Duty Petitions on Urea Ammonium Nitrate Solutions from Russia, Trinidad and Tobago

Faegre Drinker Biddle & Reath LLP
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Faegre Drinker Biddle & Reath LLP

On June 30, 2021, CF Industries Nitrogen, LLC, Terra Nitrogen LP, and Terra International (Oklahoma) LLC filed antidumping duty (AD) and countervailing duty (CVD) petitions on Urea Ammonium Nitrate Solutions (UAM) from Russia and Trinidad and Tobago. In addition to the petitioners, U.S. producers include CVR Partners LP, Dyno Nobel, Inc., Orascom Construction Industries (operating as Iowa Fertilizer Company LLC), Koch Industries, LSB Industries, Nutrien Ltd., and Trademark Nitrogen.

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of UAM.

Scope:

Per the Petition:

The merchandise covered by this Petition is all mixtures of urea and ammonium nitrate in aqueous or ammonia solution, regardless of nitrogen concentration by weight, and regardless of the presence of additives, such as corrosion inhibiters and soluble micro or macronutrients. The covered merchandise is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 3102.80.0000. Although the HTSUS subheading are provided for convenience and customs purposes, the written description of the scope is dispositive.

Estimated Margins:

  • For Russian producers/exporters, the Petitioners allege dumping margins ranging from 169.96 to 391.65 percent.
  • For the sole Trinidad & Tobago producer/exporter, the Petitioners allege a dumping margin of 158.81 percent.
  • The Petitioners allege significant subsidy margins for both Russia and Trinidad and Tobago, although the petitions do not quantify the alleged net subsidy margins.

Estimated Schedule of Investigations:

The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):

June 30, 2021 Petitions are filed.
July 20, 2021 DOC initiates investigations.
July 21, 2021 ITC staff conference (estimated).
August 16, 2021 Deadline for ITC preliminary injury determinations.
September 23, 2021 Deadline for DOC preliminary CVD determinations, if deadlines are NOT postponed.
November 29, 2021 Deadline for DOC preliminary CVD determinations, if deadlines are fully postponed.
December 7, 2021 Deadline for DOC preliminary AD determinations, if deadlines are NOT postponed.
January 26, 2022 Deadline for DOC preliminary AD determinations, if deadlines are fully postponed.
June 10, 2022 Deadline for DOC final AD and CVD determinations, if all deadlines are fully postponed.
July 25, 2022 Deadline for ITC final injury determination, if all DOC deadlines are fully postponed.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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