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Petition Filed for New AD/CV Duties on Urea Ammonium Nitrate Solutions

A domestic manufacturer seeks the imposition of new antidumping and countervailing duties on urea ammonium nitrate solutions from Russia and Trinidad and Tobago, they said in petitions filed with the Commerce Department and the International Trade Commission June 30. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers. The petition was filed by CF Industries Nitrogen and its subsidiaries Terra Nitrogen and Terra International (Oklahoma).

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"Available evidence indicates that subject producers/exporters are dumping UAN into the U.S. market at significant margins – up to 392 percent for Russia, and 159 percent for Trinidad – and that they also benefit from a wide range of countervailable subsidies," the petition said. "These include the provision of natural gas for less than adequate remuneration – a subsidy program that Commerce has previously found countervailable for both Russia and Trinidad, and which is particularly pernicious in the case of [urea ammonium nitrate], because natural gas accounts for a large portion of the cost of production."

Proposed Scope

The petition proposes the following scope for the investigations:

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 subheadings are provided for convenience and customs purposes, the written description of the scope is dispositive.

Commerce Accepting Comments on Petition Support

The Commerce Department is accepting comments on domestic industry support for the petition to determine whether the petition meets the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petition meets these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due on or about July 20.