The European Union (“EU”) has announced that it will impose an additional 26% ad valorem import duty on certain products of U.S. origin, effective May 1, 2013, as part of its ongoing dispute with the United States over the Continued Dumping and Subsidy Offset Act (“CDSOA”, also commonly referred to as “the Byrd Amendment”).
The scope of the goods covered by this announcement are defined in terms of EU tariff numbers:
- 0710 40 00 (Frozen Vegetables: Sweetcorn)
- 9003 19 30 (Frames and mountings for spectacles, goggles or the like, not of plastic)
- 8705 10 00 (Special purpose motor vehicles, other than those principally designed for the transport of persons or goods: Crane lorries)
- 6204 62 31 (Women’s woven cotton trousers, of denim)
To be subject to this action, goods have to both be of U.S. origin and classifiable within one of the above tariff provisions.
The EU has provided for two limited exceptions (both of which only apply to goods classifiable within 6204 62 31):
- Products for which an import license exempting payment of such duty was issued before April 17, 2013; and,
- Products for which it can be demonstrated that they are already en route to the EU or in temporary storage, a free zone or free warehouse (as defined under EU law) on May 1, 2013.
If you have any questions regarding this EU announcement or if we can be of assistance in exploring strategies to address its impact, please do not hesitate to contact us.
For more information about this topic, please contact Arthur W. Bodek.
 Under the Byrd Amendment, the United States distributed additional duties collected in antidumping duty cases to domestic interests that supported such cases (as opposed to directing such funds to the government’s coffers). This practice has been found by the World Trade Organization (“WTO”) to be inconsistent with U.S. international trade obligations, thereby allowing aggrieved trading partners (including the EU) to impose additional duties on U.S. imports in an amount intended to offset such harm. Although the law has been repealed, significant residual amounts are still being distributed by the United States, in contravention of the WTO decision.