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Urea Ammonium Nitrate: New AD/CVD Investigations Deadlines & Scope

The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on urea ammonium nitrate from Russia (A-821-831/C-821-832) and Trinidad and Tobago (A-274-808/C-274-809). The agency will determine whether imports of urea ammonium nitrate are being sold in the U.S. at less than fair value or are illegally subsidized.

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The AD duty investigation for Trinidad and Tobago covers entries April 1, 2020, through March 31, 2021. The domestic manufacturers who requested the investigation also seek designation of Russia as a non-market economy country. If Commerce agrees, the six-month period of investigation for Russia would be Oct. 1, 2020 through March 31, 2021. The CV duty investigation for both countries covers entries Jan. 1, 2020, through Dec. 31, 2020.

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized urea ammonium nitrate from Russia and Trinidad and Tobago are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determinations, due Aug. 16 for both the AD and the CV investigations, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, due Sept. 23 for CV duties and Dec. 7 for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CV duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.

AD/CVD Respondent Selection

Commerce will in the AD/CV duty investigations on Trinidad and Tobago examine the only known producer of subject merchandise, Methanol Holdings (Trinidad) Limited. For its Russia investigation, Commerce will base respondent selection in its CV duty investigation on CBP import data, and in its AD duty investigation on quantity and value questionnaires sent to each potential respondent. Exporters from both countries that don't get a quantity and value questionnaire can still submit one by obtaining the questionnaire from Commerce's website. Responses are due by 5 p.m. on Aug. 3.

Scope of the AD/CVD Investigations

The merchandise subject to the investigation is urea ammonium nitrate. The merchandise covered by these investigations 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 (UAN). Subject merchandise includes merchandise matching the above description that has been processed in a third country, including by commingling, diluting, adding or removing additives, or performing any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the subject country.

The scope also includes UAN that is commingled with UAN from sources not subject to these investigations. Only the subject component of such commingled products is covered by the scope of these investigations.

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

Participants in the AD/CVD investigations may submit comments on product coverage under the scope of the investigations. Comments on the scope are due by 5 p.m. EDT on Aug. 9.

Investigations Timetable

EventAD DutyCV Duty
Petitions filed06/30/2106/30/21
DOC initiation date07/20/2107/20/21
ITC prelim determinations08/16/2108/16/21
DOC prelim determinations12/07/2109/23/21
DOC final determinations02/22/2212/07/21
ITC final determinations04/08/2201/21/22
Issuance of orders04/15/2201/28/22

These deadlines may be, and usually are, extended. The Commerce Department fact sheet on the initiation of these investigations is (here). See 2107010086 for a summary of the petition requesting these investigations.