[Code of Federal Regulations]
[Title 19, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR351.218]

[Page 222-227]
 
                        TITLE 19--CUSTOMS DUTIES
 
                         DEPARTMENT OF COMMERCE
 
PART 351--ANTIDUMPING AND COUNTERVAILING DUTIES--Table of Contents
 
        Subpart B--Antidumping and Countervailing Duty Procedures
 
Sec.  351.218  Sunset reviews under section 751(c) of the Act.

    (a) Introduction. The URAA added a new procedure, commonly referred 
to as ``sunset reviews,'' in section 751(c) of the Act. In general, no 
later than once every five years, the Secretary must determine whether 
dumping or countervailable subsidies would be likely to continue or 
resume if an order were revoked or a suspended investigation were 
terminated. The Commission must conduct a similar review to determine 
whether injury would be likely to continue or resume in the absence of 
an order or suspended investigation. If the determinations under section 
751(c) of both the Secretary and the Commission are affirmative, the 
order (or suspended investigation) remains in place. If either 
determination is negative, the order will be revoked (or the suspended 
investigation will be terminated). This section contains rules regarding 
the procedures for sunset reviews.
    (b) In general. The Secretary will conduct a sunset review, under 
section 751(c) of the Act, of each antidumping and countervailing duty 
order and suspended investigation, and, under section 752(b) or section 
752(c) (whichever is applicable), will determine whether revocation of 
an antidumping or countervailing duty order or termination of a 
suspended investigation would be likely to lead to continuation or 
recurrence of dumping or a countervailable subsidy.
    (c) Notice of initiation of review; early initiation--(1) Initial 
sunset review. No later than 30 days before the fifth anniversary date 
of an order or suspension of an investigation (see section 751(c)(1) of 
the Act), the Secretary will publish a notice of initiation of a sunset 
review (see section 751(c)(2) of the Act).
    (2) Subsequent sunset reviews. In the case of an order or suspended 
investigation that is continued following a sunset review initiated 
under paragraph (c)(1) of this section, no later than 30 days before the 
fifth anniversary of the date of the last determination by the 
Commission to continue the order or suspended investigation, the 
Secretary will publish a notice of initiation of a sunset review (see 
section 751(c)(2) of the Act).
    (3) Early initiation. The Secretary may publish a notice of 
initiation at an earlier date than the dates described in paragraph (c) 
(1) and (2) of this section if a domestic interested party demonstrates 
to the Secretary's satisfaction that an early initiation would promote 
administrative efficiency. However, if the Secretary determines that the 
domestic interested party that requested early initiation is a related 
party or an importer under section 771(4)(B) of the Act and Sec.  
351.203(e)(4), the Secretary may decline the request for early 
initiation.
    (4) Transition orders. The Secretary will initiate sunset reviews of 
transition orders, as defined in section 751(c)(6)(C) of the Act, in 
accordance with section 751(c)(6) of the Act.
    (d) Participation in sunset review--(1) Domestic interested party 
notification of intent to participate--(i) Filing of notice of intent to 
participate. Where a domestic interested party intends to participate in 
a sunset review, the interested party must, not later than 15 days after 
the date of publication in the Federal Register of the notice of 
initiation, file a notice of intent to participate in a sunset review 
with the Secretary.
    (ii) Contents of notice of intent to participate. Every notice of 
intent to participate in a sunset review must include a statement 
expressing the domestic interested party's intent to participate in the 
sunset review and the following information:
    (A) The name, address, and phone number of the domestic interested 
party (and its members, if applicable) that intends to participate in 
the sunset review and the statutory basis (under section 771(9) of the 
Act) for interested party status;
    (B) A statement indicating whether the domestic producer:
    (1) Is related to a foreign producer or to a foreign exporter under 
section 771(4)(B) of the Act; or
    (2) Is an importer of the subject merchandise or is related to such 
an importer under section 771(4)(B) of the Act;

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    (C) The name, address, and phone number of legal counsel or other 
representative, if any;
    (D) The subject merchandise and country subject to the sunset 
review; and
    (E) The citation and date of publication in the Federal Register of 
the notice of initiation.
    (iii) Failure of domestic interested party to file notice of intent 
to participate in the sunset review. (A) A domestic interested party 
that does not file a notice of Intent to participate in the sunset 
review will be considered not willing to participate in the review and 
the Secretary will not accept or consider any unsolicited submissions 
from that party during the course of the review.
    (B) If no domestic interested party files a notice of intent to 
participate in the sunset review, the Secretary will:
    (1) Conclude that no domestic interested party has responded to the 
notice of initiation under section 751(c)(3)(A) of the Act;
    (2) Notify the International Trade Commission in writing as such 
normally not later than 20 days after the date of publication in the 
Federal Register of the notice of initiation; and
    (3) Not later than 90 days after the date of publication in the 
Federal Register of the Notice of Initiation, issue a final 
determination revoking the order or terminating the suspended 
investigation (see Sec. Sec.  351.221(c)(5)(ii) and 351.222(i)).
    (2) Waiver of response by a respondent interested party to a notice 
of initiation--(i) Filing of statement of waiver. A respondent 
interested party may waive participation in a sunset review before the 
Department under section 751(c)(4) of the Act by filing a statement of 
waiver with the Department, not later than 30 days after the date of 
publication in the Federal Register of the notice of initiation. If a 
respondent interested party waives participation in a sunset review 
before the Department, the Secretary will not accept or consider any 
unsolicited submissions from that party during the course of the review. 
Waiving participation in a sunset review before the Department will not 
affect a party's opportunity to participate in the sunset review 
conducted by the International Trade Commission.
    (ii) Contents of statement of waiver. Every statement of waiver must 
include a statement indicating that the respondent interested party 
waives participation in the sunset review before the Department and the 
following information:
    (A) The name, address, and phone number of the respondent interested 
party waiving participation in the sunset review before the Department;
    (B) The name, address, and phone number of legal counsel or other 
representative, if any;
    (C) The subject merchandise and country subject to the sunset 
review; and
    (D) The citation and date of publication in the Federal Register of 
the notice of initiation.
    (iii) No response from a respondent interested party. The Secretary 
will consider the failure by a respondent interested party to file a 
complete substantive response to a notice of initiation under paragraph 
(d)(3) of this section as a waiver of participation in a sunset review 
before the Department.
    (iv) Waiver of participation by a foreign government in a CVD sunset 
review. Where a foreign government waives participation in a CVD sunset 
review under paragraph (d)(2)(i) or (d)(2)(iii) of this section, the 
Secretary will:
    (A) Conclude that respondent interested parties have provided 
inadequate response to the notice of initiation under section 
751(c)(3)(B) of the Act;
    (B) Notify the International Trade Commission and conduct an 
expedited sunset review and issue final results of review in accordance 
with paragraph (e)(1)(ii)(C) of this section; and
    (C) Base the final results of review on the facts available in 
accordance with Sec.  351.308(f), which normally will include a 
determination that revocation of the order or termination of the 
suspended investigation, as applicable, would be likely to lead to 
continuation or recurrence of a countervailable subsidy for all 
respondent interested parties.
    (3) Substantive response to a notice of initiation--(i) Time limit 
for substantive response to a notice of initiation. A complete 
substantive response to a notice of initiation, filed under this 
section,

[[Page 224]]

must be submitted to the Department not later than 30 days after the 
date of publication in the Federal Register of the notice of initiation.
    (ii) Required information to be filed by all interested parties in 
substantive response to a notice of initiation. Except as provided in 
paragraph (d)(3)(v)(A) of this section, each interested party that 
intends to participate in a sunset review must file a submission with 
the Department containing the following:
    (A) The name, address, and phone number of the interested party (and 
its members, if applicable) that intends to participate in the sunset 
review and the statutory basis (under section 771(9) of the Act) for 
interested party status;
    (B) The name, address, and phone number of legal counsel or other 
representative, if any;
    (C) The subject merchandise and country subject to the sunset 
review;
    (D) The citation and date of publication in the Federal Register of 
the notice of initiation;
    (E) A statement expressing the interested party's willingness to 
participate in the review by providing information requested by the 
Department, which must include a summary of that party's historical 
participation in any segment of the proceeding before the Department 
related to the subject merchandise;
    (F) A statement regarding the likely effects of revocation of the 
order or termination of the suspended investigation under review, which 
must include any factual information, argument, and reason to support 
such statement;
    (G) Factual information, argument, and reason concerning the dumping 
margin or countervailing duty rate, as applicable, that is likely to 
prevail if the Secretary revokes the order or terminates the suspended 
investigation, that the Department should select for a particular 
interested party(s);
    (H) A summary of the Department's findings regarding duty 
absorption, if any, including a citation to the Federal Register notice 
in which the Department's findings are set forth; and
    (I) A description of any relevant scope clarification or ruling, 
including a circumvention determination, or changed circumstances 
determination issued by the Department during the proceeding with 
respect to the subject merchandise.
    (iii) Additional required information to be filed by respondent 
interested parties in substantive response to a notice of initiation. 
Except as provided in paragraph (d)(3)(v)(A) of this section, the 
submission from each respondent interested party that intends to 
participate in a sunset review must also contain the following:
    (A) That party's individual weighted average dumping margin or 
countervailing duty rate, as applicable, from the investigation and each 
subsequent completed administrative review, including the final margin 
or rate, as applicable, where such margin or rate was changed as a 
result of a final and conclusive court order;
    (B) For each of the five calendar years (or fiscal years, if more 
appropriate) preceding the year of publication of the notice of 
initiation, that party's volume and value (normally on an FOB basis) of 
exports of subject merchandise to the United States;
    (C) As applicable, for the calendar year (or fiscal year, if more 
appropriate) preceding the year of initiation of the dumping 
investigation, that party's volume and value (normally on an FOB basis) 
of exports of subject merchandise to the United States;
    (D) For each of the five calendar years (or fiscal years, if more 
appropriate) preceding the year of publication of the notice of 
initiation, on a volume basis (or value basis, if more appropriate), 
that party's percentage of the total exports of subject merchandise 
(defined in section 771(25) of the Act) to the United States; and
    (E) For each of the three most recent years, including the year of 
publication of the notice of initiation, that party's volume and value 
(normally on an FOB basis) of exports of subject merchandise to the 
United States during the two fiscal quarters as of the month preceding 
the month in which the notice of initiation was published.
    (iv) Optional information to be filed by interested parties in 
substantive response to a notice of initiation--(A) Showing good cause. 
An interested party may submit information or evidence to

[[Page 225]]

show good cause for the Secretary to consider other factors under 
section 752(b)(2) (CVD) or section 752(c)(2) (AD) of the Act and 
paragraph (e)(2)(ii) of this section. Such information or evidence must 
be submitted in the party's substantive response to the notice of 
initiation under paragraph (d)(3) of this section.
    (B) Other information. A substantive response from an interested 
party under paragraph (d)(3) of this section also may contain any other 
relevant information or argument that the party would like the Secretary 
to consider.
    (v) Required information to be filed by a foreign government in 
substantive response to the notice of initiation in a CVD sunset 
review--(A) In general. The foreign government of a country subject to a 
CVD sunset review (see section 771(9)(B) of the Act) that intends to 
participate in a CVD sunset review must file a submission with the 
Department under paragraph (d)(3)(i) of this section containing the 
information required under paragraphs (d)(3)(ii) (A) through (E) of this 
section.
    (B) Additional required information to be filed by a foreign 
government in a CVD sunset review involving an order where the 
investigation was conducted on an aggregate basis. The submission from 
the foreign government of a country subject to a CVD sunset review, 
involving an order where the investigation was conducted on an aggregate 
basis, must also contain:
    (1) The information required under paragraphs (d)(3)(ii)(F), 
(d)(3)(ii)(G), and (d)(3)(ii)(I) of this section;
    (2) The countervailing duty rate from the investigation and each 
subsequent completed administrative review, including the final rate 
where such rate was changed as a result of a final and conclusive court 
order; and
    (3) For each of the five calendar years (or fiscal years, if more 
appropriate) preceding the year of publication of the notice of 
initiation, the volume and value (normally on an FOB basis) of exports 
of subject merchandise to the United States.
    (vi) Substantive responses from industrial users and consumers. An 
industrial user of the subject merchandise or a representative consumer 
organization, as described in section 777(h) of the Act, that intends to 
participate in a sunset review must file a submission with the 
Department under paragraph (d)(3)(i) of this section containing the 
information required under paragraphs (d)(3)(ii) (A) through (D) of this 
section and may submit other relevant information under paragraphs 
(d)(3)(ii) and (d)(3)(iv) of this section.
    (4) Rebuttal to substantive response to a notice of initiation. Any 
interested party that files a substantive response to a notice of 
initiation under paragraph (d)(3) of this section may file a rebuttal to 
any other party's substantive response to a notice of initiation not 
later than five days after the date the substantive response is filed 
with the Department. Except as provided in Sec.  351.309(e), the 
Secretary normally will not accept or consider any additional 
information from a party after the time for filing rebuttals has 
expired, unless the Secretary requests additional information from 
parties after determining to proceed to a full sunset review under 
paragraph (e)(2) of this section.
    (e) Conduct of sunset review--(1) Adequacy of response to a notice 
of initiation--(i) Adequacy of response from domestic interested 
parties--(A) In general. The Secretary will make its determination of 
adequacy of response on a case-by-case basis; however, the Secretary 
normally will conclude that domestic interested parties have provided 
adequate response to a notice of initiation where it receives a complete 
substantive response under paragraph (d)(3) of this section from at 
least one domestic interested party.
    (B) Disregarding response from a domestic interested party. In 
making its determination concerning the adequacy of response from 
domestic interested parties under paragraph (e)(1)(i)(A) of this 
section, the Secretary may disregard a response from a domestic 
producer:
    (1) Related to a foreign producer or to a foreign exporter under 
section 771(4)(B) of the Act; or
    (2) That is an importer of the subject merchandise or is related to 
such an importer under section 771(4)(B) of the Act (see paragraph 
(d)(1)(ii)(B) of this section).

[[Page 226]]

    (C) Inadequate response from domestic interested parts. Where the 
Secretary determines to disregard a response from a domestic interested 
party(s) under paragraph (e)(1)(i)(A) or (e)(1)(i)(B) of this section 
and no other domestic interested party has filed a complete substantive 
response to the notice of initiation under paragraph (d)(3) of this 
section, the Secretary will:
    (1) Conclude that no domestic interested party has responded to the 
notice of initiation under section 751(c)(3)(A) of the Act;
    (2) Notify the International Trade Commission in writing as such 
normally not later than 40 days after the date of publication in the 
Federal Register of the Notice of Initiation; and
    (3) Not later than 90 days after the date of publication in the 
Federal Register of the Notice of Initiation, issue a final 
determination revoking the order or terminating the suspended 
investigation (see Sec. Sec.  351.221(c)(5)(ii) and 351.222(i)).
    (ii) Adequacy of response from respondent interested parties--(A) In 
general. The Secretary will makes its determination of adequacy of 
response on a case-by-case basis; however, the Secretary normally will 
conclude that respondent interested parties have provided adequate 
response to a notice of initiation where it receives complete 
substantive responses under paragraph (d)(3) of this section from 
respondent interested parties accounting on average for more than 50 
percent, on a volume basis (or value basis, if appropriate), of the 
total exports of subject merchandise to the United States over the five 
calendar years preceding the year of publication of the notice of 
initiation.
    (B) Failure of a foreign government to file a substantive response 
to a notice of initiation in a CVD sunset review. If a foreign 
government fails to file a complete substantive response to a notice of 
initiation in a CVD sunset review under paragraph (d)(3)(v) of this 
section or waives participation in a CVD sunset review under paragraph 
(d)(2)(i) or (d)(2)(iii) of this section, the Secretary will:
    (1) Conclude that respondent interested parties have provided 
inadequate response to the Notice of Initiation under section 
751(c)(3)(B) of the Act;
    (2) Notify the International Trade Commission and conduct an 
expedited sunset review and issue final results of review in accordance 
with paragraph (e)(1)(ii)(C) of this section; and
    (3) Base the final results of review on the facts available in 
accordance with Sec.  351.308(f), which normally will include a 
determination that revocation of the order or termination of the 
suspended investigation, as applicable, would be likely to lead to 
continuation or recurrence of a countervailable subsidy for all 
respondent interested parties.
    (C) Inadequate response from respondent interested parties. If the 
Secretary determines that respondent interested parties provided 
inadequate response to a notice of initiation under paragraph 
(d)(2)(iv), (e)(1)(ii)(A), or (e)(1)(ii)(B) of this section, the 
Secretary:
    (1) Will notify the International Trade Commission in writing as 
such normally not later than 50 days after the date of publication in 
the Federal Register of the Notice of Initiation; and
    (2) Normally will conduct an expedited sunset review and, not later 
than 120 days after the date of publication in the Federal Register of 
the notice of initiation, issue, without further investigation, final 
results of review based on the facts available in accordance with Sec.  
351.308(f) (see section 751(c)(3)(B) of the Act and Sec.  
351.221(c)(5)(ii)).
    (2) Full sunset review upon adequate response from domestic and 
respondent interested parties--(i) In general. Normally, only where the 
Department receives adequate response to the notice of initiation from 
domestic interested parties under paragraph (e)(1)(i)(A) of this section 
and from respondent interested parties under paragraph (e)(1)(ii)(A) of 
this section, will the Department conduct a full sunset review. Even 
where the Department conducts a full sunset review, only under the most 
extraordinary circumstances will the Secretary rely on a countervailing 
duty rate or a dumping margin other than those it calculated and 
published in its prior determinations, and in no case will the Secretary 
calculate a net

[[Page 227]]

countervailable subsidy or a dumping margin for a new shipper in the 
context of a sunset review.
    (ii) [Reserved]
    (iii) Consideration of other factors under section 752(b)(2) (CVD) 
or section 752(c)(2) (AD) of the Act. The Secretary will consider other 
factors under section 752(b)(2) (CVD) or section 752(c)(2) (AD) of the 
Act if the Secretary determines that good cause to consider such other 
factors exists. The Secretary normally will consider such other factors 
only where it conducts a full sunset review under paragraph (e)(2)(i) of 
this section.
    (f) Time limits--(1) Preliminary results of full sunset review. The 
Department normally will issue its preliminary results in a full sunset 
review not later than 110 days after the date of publication in the 
Federal Register of the notice of initiation.
    (2) Verification--(i) In general. The Department will verify factual 
information relied upon in making its final determination normally only 
in a full sunset review (see section 782(i)(2) of the Act and Sec.  
351.307(b)(1)(iii)) and only where needed. The Department will conduct 
verification normally only if, in its preliminary results, the 
Department determines that revocation of the order or termination of the 
suspended investigation, as applicable, is not likely to lead to 
continuation or recurrence of a countervailable subsidy or dumping (see 
section 752(b) and section 752(c) of the Act), as applicable, and the 
Department's preliminary results are not based on countervailing duty 
rates or dumping margins, as applicable, determined in the investigation 
or subsequent reviews.
    (ii) Timing of verification. The Department normally will conduct 
verification, under paragraph (f)(2)(i) of this section and Sec.  
351.307, approximately 120 days after the date of publication in the 
Federal Register of the notice of initiation.
    (3) Final results of full sunset review and notification to the 
International Trade Commission--(i) Timing of final results of review 
and notification to the International Trade Commission. The Department 
normally will issue its final results in a full sunset review and notify 
the International Trade Commission of its results of review not later 
than 240 days after the date of publication in the Federal Register of 
the notice of initiation (see section 751(c)(5)(A) of the Act).
    (ii) Extension of time limit. If the Secretary determines that a 
full sunset review is extraordinarily complicated under section 
751(c)(5)(C) of the Act, the Secretary may extend the period for issuing 
final results by not more than 90 days (see section 751(c)(5)(B) of the 
Act).
    (4) Notice of continuation of an order or suspended investigation; 
notice of revocation of an order or termination of a suspended 
investigation. Except as provided in paragraph (d)(1)(iii)(B)(3) of this 
section and Sec.  351.222(i)(1)(i), the Department normally will issue 
its determination to continue an order or suspended investigation, or to 
revoke an order or terminate a suspended investigation, as applicable, 
not later than seven days after the date of publication in the Federal 
Register of the International Trade Commission's determination 
concluding the sunset review. The Department immediately thereafter will 
publish notice of its determination in the Federal Register.

[62 FR 27379, May 19, 1997, as amended at 63 FR 13520, Mar. 20, 1998]