UPDATE 05/14/2019
U.S. Customs was directed to resume suspension of liquidation of entries for fresh tomatoes from Mexico effective May 7, 2019. Margin rates for “All Other Growers and /or Exporters” remain at the 1996 preliminary determination level of 17.56%.
Original 04/30/2019
The antidumping investigation of fresh tomatoes from Mexico initiated in 1996 and suspended for the past 23 years came back to life! This occurred when the Department of Commerce (DOC) gave Mexico notice of the U.S. intent to terminate the agreement and resume the antidumping investigation. If the agreement is actually terminated, the U.S. would impose antidumping duties on Mexican tomatoes entered into the U.S. on or after May 7, 2019. In the meantime, U.S. and Mexican negotiators are attempting to hammer out a new suspension agreement that DOC and U.S. growers say is necessary to stop the increasing flow of unfairly priced tomatoes from Mexico.
Which Products are Impacted?
The products covered under the current suspension agreement are all fresh or chilled tomatoes from Mexico. “Processed”
tomatoes are not covered by the antidumping case (i.e. canned, dehydrated, dried, juices, sauces, purées, etc.).
Consultations between the US and Mexico aimed at resolving the dispute have been ongoing since January 2018, but
no agreement has been reached yet. If these negotiations are unsuccessful, DOC will resume the antidumping investigation and will instruct CBP to require deposit of antidumping duties for entries made on or after May 7, 2019, at the rates established in the 1996 preliminary determination, which range from 4.16% to 188.45%, with the rate applicable to most imports set at 17.56%. Assuming that the ITC finds that the Mexican imports have injured the U.S. industry, new antidumping duty rates could be effective as early as November 7, 2019, when DOC issues its final determination.
Jessica Rifkin, weighed in on this topic and said, “A lot has changed since 1996. Any new margins may be quite different then what was found in the past. It also will be interesting to see how Mexico reacts to the resumption of the case and
what retaliatory action it may take.”
If negotiators fail to reach a new suspension agreement, US importers and Mexican growers face new duties and
more regulatory burdens next week.
This blog is provided for informational and educational purposes only and does not constitute legal advice, and is not intended to form an attorney-client relationship. Please contact your regular FDAImports representative for additional information.
