Section 201 measures: Provisional relief for agricultural products/critical circumstances

08/12/2022 06:21 - 74 Views

Section 201 contains certain provisions that circumvent the normal schedule involved in an injury investigation and jumpstart the application of trade measures where warranted.

 

Perishable agricultural products

 

Representatives of an industry producing perishable agricultural products may petition the Commission for provisional relief, provided that such product has been the subject of import monitoring by the Commission for at least 90 days prior to the request for provisional relief. The United States Trade Representative administers such requests for monitoring and is authorized to request the Commission to commence such monitoring.

 

Once a petition for provisional relief is received by the Commission, it has 21 days in which to determine whether increased imports of the perishable agricultural good in question are a substantial cause of serious injury or threat thereof to the domestic industry. Part of this determination involves an assessment of whether the serious injury would be difficult to repair after or could not be prevented during a full 180-day investigation as envisioned under normal procedures. An affirmative determination and recommendations on relief are forwarded to the President, who has seven days in which to consider the matter and provide any provisional relief. The provisional relief remains in effect for the duration of the Commission's full investigation. The full investigation moves forward whether the Commission makes an affirmative or negative finding on provision relief.

 

Critical circumstances

 

A petitioner may allege in its petition that critical circumstances exist. As with the perishable agricultural product provision, the issue for the Commission is to determine whether any delay in relief would result in undue damage to the domestic industry in question.

 

Under the statute, critical circumstances are considered to exist if: (1) there is clear evidence that increased imports of the article are a substantial cause of serious injury, or threat thereof, to the domestic industry; and (2) delay in taking action would cause damage that would be difficult to repair.

 

Within 60 days of receiving a critical circumstances allegation, the Commission is required to make its determination and forward any affirmative finding in a report to the President along with recommendations for appropriate provisional relief. The President has 30 days upon receipt of the Commission report containing its determination and recommendations to determine whether any provisional relief is warranted. Typically, any relief would be in the form of a tariff.

 

Regardless of the critical circumstances determination, the Commission continues its full investigation, but its timetable for the injury phase begins only after it has completed its critical circumstances investigation and determination. Any provisional relief terminates when:

 

- The Commission reaches a negative final determination on injury;

- The President takes more permanent action in response to a final affirmative finding on injury;

- The President declines to take permanent action; or

- The President determines that the provisional relief is no longer warranted as a result of changed circumstances.

 

Provisional relief may not exceed 200 days.

 

Source: Business Guide to Trade Remedies in the United States: Anti-dumping, countervailing and safeguards legislation practices and procedures

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