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  December 20th, 2017 | Written by

BREAKING NEWS: US Slaps Punitive Duties on Canadian Aircraft

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  • Commerce determined that Canadian exporters sold civil aircraft in the USat 79.82 percent less than fair value.
  • Commerce determined that Canada is providing unfair subsidies to its producers of civil aircraft.
  • Canadian aircraft manufacturer Bombardier agreed to sell $5 billion in aircraft to Delta Airlines.

US Secretary of Commerce Wilbur Ross announced today the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of 100- to 150-seat large civil aircraft from Canada.

Commerce determined that exporters from Canada sold 100- to 150-seat large civil aircraft in the United States at 79.82 percent less than fair value.  Commerce also determined that Canada is providing unfair subsidies to its producers of 100- to 150-seat large civil aircraft at a rate of 212.39 percent.

The decision applies specifically to a $5-billion deal for the Canadian aircraft manufacturer Bombardier to sell aircraft to Delta Airlines. The airplanes have not yet been imported, leading some to criticize Commerce’s investigation as premature. The Boeing Company petitioned the Commerce Department to undertake the investigation.

“This decision is based on a full and unbiased review of the facts in an open and transparent process.” said Ross.

As a result of today’s decisions, Commerce will instruct US Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on the final rates.

If the US International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD and CVD orders.  If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

Foreign companies that price their products in the US market below the cost of production or below prices in their home markets are subject to AD duties.  Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.