Shortly after the investigation is initiated, the Commerce Department sends out a detailed questionnaire to foreign manufacturers and exporters of the merchandise under investigation. This questionnaire is given either to the lawyer representing the foreign company or to the country's embassy in Washington DC, or to both.

 

The questionnaire in an anti-dumping case asks for general background about the company and its sales practices (section A), information on domestic sales in the exporter's home market (section B), export sales to other countries (also part of section B), and export sales to the United States (section C). It sometimes also asks for information about the cost of producing the merchandise under investigation (section D) and constructed value (section E). All of this information is needed to enable the Commerce Department to make a comparison between 'United States price' and 'foreign market value' or 'normal value' (usually either foreign home market prices or prices to export markets other than the United States), which determines whether there has been dumping as defined by United States law. The questionnaire is very detailed and requires much of the information to be submitted on appropriate computer media in a specified format.

 

In the dumping context, the questionnaires have become quite standardized. The products and period of time being investigated change from case to case, but much of the remainder of the questionnaire is the same. The Commerce Department has a standard questionnaire posted on its website, at www.ita.dongov, in the 'Find a form' section.

 

The questionnaires in countervailing duty case are different in two respects. First, the government of the country in question receives a very detailed questionnaire about the operation of the various alleged subsidy programmes, and about various economic issues that may affect the assessment of whether the programmes are impermissible subsidies. Second, the foreign exporters also receive questionnaires, but the focus is on the utilization of the programmes and on general questions about the company, not the transaction-by-transaction examination of prices and costs that is requested in an anti-dumping questionnaire.

 

A response to the questionnaire usually must be made within 30 to 45 days after it is received. The response is normally due within 30 days after the questionnaire is presented. An extension of 15 days is normal and is usually granted routinely. Extensions beyond 45 days are unusual, and will be granted only if the foreign company can provide a good justification for the delay. For example, in some investigations the Commerce Department has considered national holidays and the closing of a company's financial year to be good justifications for extensions.

 

There is normally a great deal of activity during the period following submission of the questionnaire responses. The Commerce Department, based on its review of the questionnaire response, usually has follow-up questions and usually requires supplemental responses. These responses are often called `deficiency responses', an unfair name since the deficiency is sometimes with the questions and the Commerce Department's understanding of the response, not with the answer itself.

 

Complaints from the domestic industry can also trigger supplemental responses. If the United States industry is represented by an aggressive lawyer, that lawyer (and any consultants working with the lawyer) carefully reviews all the submissions made by the foreign company and presents arguments to the Commerce Department that the information submitted is incomplete or inaccurate, and that additional information should therefore be requested from the company. The United States industry wants to have as much information submitted in writing as possible. The United States industry also wants to make the defence of the case as burdensome as possible for its foreign competitor. Requests from the petitioner sometimes lead to supplemental responses, if the Commerce Department decides that it agrees with the criticisms and arguments made by the petitioner.

 

Preparation of the responses and supplemental responses to the questionnaire is one of the most crucial parts of the defence effort. The foreign company must devote substantial time and effort to preparing thorough and accurate responses to the Commerce Department questionnaire.

 

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