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.
Sidley Austin LLP 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.
Attorney Advertising - For purposes of compliance with New York State Bar rules, our headquarters are Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, 212.839.5300; One South Dearborn, Chicago, IL 60603, 312.853.7000; and 1501 K Street, N.W., Washington, D.C. 20005, 202.736.8000.