Recent measures taken by Japan will now make it more costly for U.S. producers to export certain products to Japan. In August 2013, Japan extended its countermeasures against exports of certain U.S. products in retaliation for the continued distribution of antidumping and countervailing duty revenues to affected U.S. producers under the Continued Dumping and Subsidization Offset Act (or Byrd Amendment).
The level of the sanctions is determined based on the amount of funds the U.S. collected from Japanese products subject to antidumping or countervailing duty orders that were distributed in the previous fiscal year. Due to the significant increase in funds distributed by the U.S. in fiscal year 2012, Japan has now increased its retaliatory measures by not only raising the tariff rate from 4.0 percent to 17.4 percent, but by also imposing this higher duty on new products.
Accordingly, for the period September 1, 2013 through August 31, 2014, Japan will impose an additional 17.4-percent duty on 13 different types of products, including steel bearings, stainless bar and certain pipe and tube products. A list of the 13 products by the nine-digit classification under the Harmonized Tariff Schedule of Japan is available here.
These measures are a significant expansion of the countermeasures from the previous year, which at that time only applied a 4-percent additional duty on tapered roller bearings (HTS #8482.20.00). As a result of the recent increase in Japan’s countermeasures, U.S. producers will now find it more expensive, if not prohibitive, to ship these affected products to Japan and should plan accordingly.
For more information about the contents of this newsletter, or about Kelley Drye's International Trade Practice, please contact practice group chair Kathleen Cannon or partner Paul Rosenthal, who acts as editor of this publication.