On Friday, May 24, 2021, the U.S. Department of Commerce (Commerce) announced its affirmative final determination in the countervailing duty (CVD) investigation of Passenger Vehicle and Light Truck Tires From Vietnam (PVLT Tires From Vietnam).1 In this decision, Commerce concluded that having found that the Government of Vietnam (GOV) undervalued its currency, such undervaluation constituted a countervailable subsidy. This is the first time Commerce has reached this conclusion in a final determination in a CVD investigation, in line with the new rule set forth in Commerce’s February 2020 regulations. The new regulations established a methodology to determine whether a foreign producer or exporter benefited from foreign government policies that led to the undervaluation of currency. Before last month’s determination, Commerce had the opportunity to make a determination concerning currency manipulation under the new regulations but declined to do so in the Twist Ties From the People’s Republic of China CVD investigation. Sidley’s prior updates about Commerce’s February 2020 regulations and on Commerce’s decision in the Twist Ties from China investigation can be found here and here, respectively.
Attorney Advertising—Sidley Austin LLP is a global law firm. Our addresses and contact information can be found at www.sidley.com/en/locations/offices.
Sidley provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from professional advisers. Sidley and Sidley Austin refer to Sidley Austin LLP and affiliated partnerships as explained at www.sidley.com/disclaimer.
© Sidley Austin LLP