US Hits Canadian Aircraft With Preliminary Countervailing Duties - Global Trade Magazine
  October 3rd, 2017 | Written by

US Hits Canadian Aircraft With Preliminary Countervailing Duties

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  • Commerce Department found that Bombardier aircraft exporters received subsidies of 219.63 percent.
  • The Boeing Company petitioned the Commerce Department to undertake the investigation.
  • Deal to sell Bombardier aircraft to Delta Airlines valued in excess of $5 billion.

US Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of 100- to 150-seat large civil aircraft from Canada, finding that exporters of this merchandise received countervailable subsidies of 219.63 percent.

The Commerce Department will instruct US Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on these preliminary rates.

The Canadian civil aircraft subject to this investigation, manufactured by Bombardier, have not yet been imported, leading some to criticize Commerce’s investigation as premature. An April 2016 press release announcing the sale of Bombardier aircraft to Delta Airlines valued the order to be in excess of $5 billion. The Boeing Company petitioned the Commerce Department to undertake the investigation.

Commerce is conducting a concurrent antidumping duty investigation with respect to the Bombardier aircraft. Commerce is currently scheduled to announce its final CVD determination in this investigation on December 12, 2017.

If the Commerce Department makes an affirmative final determination of subsidization and the US International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order. If the Commerce Department makes a negative final determination of subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.

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