By: Virginia Navigator Trade Team
This is the third blog in our Summer Session on Petition Filing.
The United States International Trade Commission (ITC) is an independent, quasi-judicial Federal agency which investigates matters of trade. They investigate whether or not, and to what extent, unfair trade practice harms U.S. businesses. If the investigation results in a final affirmative determination of material injury or threat of injury to a US industry, the ITC determination can be the basis for a Trade Petition filing. https://www.usitc.gov/
Here are the ABC’s for an ITC Trade Petition:
- The three types of ITC determinations are
- antidumping (AD) of low cost imports (denoted by a 731-TA number)
- countervailing duty (CVD), when a foreign government subsidizes production or imports (denoted by a 701-TA investigation number) and
- safeguard investigation, (denoted by a 201-TA investigation number) which finds that increasing quantities of certain articles are being imported to the U.S. such that the domestic industry cannot compete.
With an antidumping or countervailing duty ITC affirmative determination, the TAA petitioner does not need to establish foreign trade impact. This impact has been previously investigated and determined by the USITC for listed companies. Because of this, ITC petitions often have a shorter investigation period than other types of petitions.
- The OTAA will notify state TAA coordinators, company officials and organized unions by email of these determinations and their options to file TAA petitions on behalf of the workers. The email will include:
- a petition filing deadline (always a year after the Federal Register publication date)
- certified worker group separation time period (one year prior to through one year after the Federal Register publication date)
- the petitioner statement: “This worker group is subject to ITC injury based on notification from USDOL” in Section #3: Trade Effects on Separations of the TAA Petition and include the ITC investigation number(s), date with the volume page and number of the Federal Register Notice and product description.
Ex. “This worker group is subject to ITC injury based on notification from USDOL Investigation No. 701-TA-591 and 731-TA-1399 involving Common Alloy Aluminum Sheet from China.”
- A list of States with specific locations that are affected is provided as well as a company contact Excel spreadsheet attached in the notification letter. Always contact the company to inform them about the TAA/Trade program and ITC determination and how they can help their Trade impacted workers. Then promptly file the petition before the deadline date.
D. Important: The worker group certification requirement is only met when there are full or partial worker separations; threats of separation do not meet this requirement. Adversely affected incumbent workers are also ineligible for inclusion in an ITC-related certification. If no workers were separated during the eligibility period, there is no need to file an ITC petition.
If members of an affected worker group continue to have separations after an ITC certification expires, a regular petition can be filed which then would undergo a full investigation.
Because the eligibility period for ITC-related petitions is shorter than for regular petitions, the petition should be filed as soon as possible after notification in order to assist workers who may be certified.
In FY 2019 there were 55 product type, certified ITC related determinations covering an estimated 3,821 workers. This was 4.3% of all Trade petitions certified.
The ITC Determination assigns material injury at an INDUSTRY level and is not company specific. We are not limited to using the ITC determination as a basis for a Trade petition for only those companies that may have been petitioners in the original ITC complaint or are listed in the notification letter. Look at the injured INDUSTRY and see if the ITC determination can be used for employers in your state if they have the same or similar product. For example, while a wooden cabinet ITC determination will list individual impacted employers in Virginia or North Carolina, (American Woodmark, Masco, etc.), it is not limited to only those companies in those locations. Consider the ITC determination for possible use for ALL employers in that industry in any state.The ITC determination can and should be used effectively as an expedited avenue, if not a speed lane, on the path to Trade petition certification.