[Code of Federal Regulations]
[Title 19, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR351.208]

[Page 208-210]
 
                        TITLE 19--CUSTOMS DUTIES
 
                         DEPARTMENT OF COMMERCE
 
PART 351_ANTIDUMPING AND COUNTERVAILING DUTIES--Table of Contents
 
        Subpart B_Antidumping and Countervailing Duty Procedures
 
Sec. 351.208  Suspension of investigation.

    (a) Introduction. In addition to the imposition of duties, the Act 
also permits the Secretary to suspend an antidumping or countervailing 
duty investigation by accepting a suspension agreement (referred to in 
the WTO Agreements as an ``undertaking''). Briefly, in a suspension 
agreement, the exporters and producers or the foreign government agree 
to modify their behavior so as to eliminate dumping or subsidization or 
the injury caused thereby. If the Secretary accepts a suspension 
agreement, the Secretary will ``suspend'' the investigation and 
thereafter will monitor compliance with the agreement. This section 
contains rules for entering into suspension agreements and procedures 
for suspending an investigation.
    (b) In general. The Secretary may suspend an investigation under 
section 704 or section 734 of the Act and this section.
    (c) Definition of ``substantially all.'' Under section 704 and 
section 734 of the Act, exporters that account for ``substantially all'' 
of the merchandise means exporters and producers that have accounted for 
not less than 85 percent by value or volume of the subject merchandise 
during the period for which the Secretary is measuring dumping or 
countervailable subsidization in the investigation or such other period 
that the Secretary considers representative.
    (d) Monitoring. In monitoring a suspension agreement under section 
704(c), section 734(c), or section 734(l) of the Act (agreements to 
eliminate injurious effects or to restrict the volume of imports), the 
Secretary will not be obliged to ascertain on a continuing basis the 
prices in the United States of the subject merchandise or of domestic 
like products.
    (e) Exports not to increase during interim period. The Secretary 
will not accept a suspension agreement under section 704(b)(2) or 
section 734(b)(1) of the Act (the cessation of exports) unless the 
agreement ensures that the quantity of the subject merchandise exported 
during the interim period set forth in the agreement does not exceed the 
quantity of the merchandise exported during a period of comparable 
duration that the Secretary considers representative.
    (f) Procedure for suspension of investigation--(1) Submission of 
proposed suspension agreement--(i) In general. As appropriate, the 
exporters and producers or, in an antidumping investigation involving a 
nonmarket economy country or a countervailing duty investigation, the 
government, must submit to the Secretary a proposed suspension agreement 
within:

[[Page 209]]

    (A) In an antidumping investigation, 15 days after the date of 
issuance of the preliminary determination, or
    (B) In a countervailing duty investigation, 7 days after the date of 
issuance of the preliminary determination.
    (ii) Postponement of final determination. Where a proposed 
suspension agreement is submitted in an antidumping investigation, an 
exporter or producer or, in an investigation involving a nonmarket 
economy country, the government, may request postponement of the final 
determination under section 735(a)(2) of the Act (see Sec. 351.210(e)). 
Where the final determination in a countervailing duty investigation is 
postponed under section 703(g)(2) or section 705(a)(1) of the Act (see 
Sec. 351.210(b)(3) and Sec. 351.210(i)), the time limits in paragraphs 
(f)(1)(i), (f)(2)(i), (f)(3), and (g)(1) of this section applicable to 
countervailing duty investigations will be extended to coincide with the 
time limits in such paragraphs applicable to antidumping investigations.
    (iii) Special rule for regional industry determination. If the 
Commission makes a regional industry determination in its final 
affirmative determination under section 705(b) or section 735(b) of the 
Act but not in its preliminary affirmative determination under section 
703(a) or section 733(a) of the Act, the exporters and producers or, in 
an antidumping investigation involving a nonmarket economy country or a 
countervailing duty investigation, the government, must submit to the 
Secretary any proposed suspension agreement within 15 days of the 
publication in the Federal Register of the antidumping or countervailing 
duty order.
    (2) Notification and consultation. In fulfilling the requirements of 
section 704 or section 734 of the Act (whichever is applicable), the 
Secretary will take the following actions:
    (i) In general. The Secretary will notify all parties to the 
proceeding of the proposed suspension of an investigation and provide to 
the petitioner a copy of the suspension agreement preliminarily accepted 
by the Secretary (the agreement must contain the procedures for 
monitoring compliance and a statement of the compatibility of the 
agreement with the requirements of section 704 or section 734 of the 
Act) within:
    (A) In an antidumping investigation, 30 days after the date of 
issuance of the preliminary determination, or
    (B) In a countervailing duty investigation, 15 days after the date 
of issuance of the preliminary determination; or
    (ii) Special rule for regional industry determination. If the 
Commission makes a regional industry determination in its final 
affirmative determination under section 705(b) or section 735(b) of the 
Act but not in its preliminary affirmative determination under section 
703(a) or section 733(a) of the Act, the Secretary, within 15 days of 
the submission of a proposed suspension agreement under paragraph 
(f)(1)(iii) of this section, will notify all parties to the proceeding 
of the proposed suspension agreement and provide to the petitioner a 
copy of the agreement preliminarily accepted by the Secretary (such 
agreement must contain the procedures for monitoring compliance and a 
statement of the compatibility of the agreement with the requirements of 
section 704 or section 734 of the Act); and
    (iii) Consultation. The Secretary will consult with the petitioner 
concerning the proposed suspension of the investigation.
    (3) Opportunity for comment. The Secretary will provide all 
interested parties, an industrial user of the subject merchandise or a 
representative consumer organization, as described in section 777(h) of 
the Act, and United States government agencies an opportunity to submit 
written argument and factual information concerning the proposed 
suspension of the investigation within:
    (i) In an antidumping investigation, 50 days after the date of 
issuance of the preliminary determination,
    (ii) In a countervailing duty investigation, 35 days after the date 
of issuance of the preliminary determination, or
    (iii) In a regional industry case described in paragraph (f)(1)(iii) 
of this section, 35 days after the date of issuance of an order.

[[Page 210]]

    (g) Acceptance of suspension agreement. (1) The Secretary may accept 
an agreement to suspend an investigation within:
    (i) In an antidumping investigation, 60 days after the date of 
issuance of the preliminary determination,
    (ii) In a countervailing duty investigation, 45 days after the date 
of issuance of the preliminary determination, or
    (iii) In a regional industry case described in paragraph (f)(1)(iii) 
of this section, 45 days after the date of issuance of an order.
    (2) If the Secretary accepts an agreement to suspend an 
investigation, the Secretary will take the actions described in section 
704(f), section 704(m)(3), section 734(f), or section 734(l)(3) of the 
Act (whichever is applicable), and will publish in the Federal Register 
notice of ``Suspension of Antidumping (Countervailing Duty) 
Investigation,'' including the text of the agreement. If the Secretary 
has not already published notice of an affirmative preliminary 
determination, the Secretary will include that notice. In accepting an 
agreement, the Secretary may rely on factual or legal conclusions the 
Secretary reached in or after the affirmative preliminary determination.
    (h) Continuation of investigation. (1) A request to the Secretary 
under section 704(g) or section 734(g) of the Act for the continuation 
of the investigation must be made in writing. In addition, the request 
must be simultaneously filed with the Commission, and the requester must 
so certify in submitting the request to the Secretary.
    (2) If the Secretary and the Commission make affirmative final 
determinations in an investigation that has been continued, the 
suspension agreement will remain in effect in accordance with the 
factual and legal conclusions in the Secretary's final determination. If 
either the Secretary or the Commission makes a negative final 
determination, the agreement will have no force or effect.
    (i) Merchandise imported in excess of allowed quantity. (1) The 
Secretary may instruct the Customs Service not to accept entries, or 
withdrawals from warehouse, for consumption of subject merchandise in 
excess of any quantity allowed by a suspension agreement under section 
704 or section 734 of the Act, including any quantity allowed during the 
interim period (see paragraph (e) of this section).
    (2) Imports in excess of the quantity allowed by a suspension 
agreement, including any quantity allowed during the interim period (see 
paragraph (e) of this section), may be exported or destroyed under 
Customs Service supervision, except that if the agreement is under 
section 704(c)(3) or section 734(l) of the Act (restrictions on the 
volume of imports), the excess merchandise, with the approval of the 
Secretary, may be held for future opening under the agreement by placing 
it in a foreign trade zone or by entering it for warehouse.