|
Washington, D.C. – Congressman Pete Visclosky, Chairman of the Congressional Steel Caucus, today lead 14 other members of the Caucus in urging Commerce Secretary Gary Locke not to allow the Foreign-Trade Zones subzone loophole that would allow companies to avoid paying antidumping and countervailing duties on unfair imports. The following is their letter to Secretary Locke:
September 11, 2009
The Honorable Gary Locke
Secretary of Commerce
1401 Constitution Avenue, Northwest
Washington, D.C. 20230
Dear Secretary Locke:
As members of the Congressional Steel Caucus we want to express our deep concern about the use of the Foreign-Trade Zones (FTZ) program as a means of undermining the trade relief that domestic industries have obtained under the antidumping and countervailing duty laws.
It has come to our attention that companies are now requesting FTZ subzones in order to be able to consume dumped inputs from China and other countries to produce exported merchandise at their U.S. plants without paying antidumping duties. This device evades compliance with U.S. trade laws and poses a very serious threat to U.S. industries targeted by unfair imports and their workers.
The steel industry, other domestic producers, and labor unions that rely on the antidumping and countervailing duty laws are gravely concerned about this new duty-avoidance strategy. In the current economic environment where plant shutdowns and job losses are common in our districts, it is particularly critical that the Foreign-Trade Zones Board not allow this device to be used to undercut our trade laws as they were intended to be implemented.
We recognize that the Board requires antidumping and countervailing duties to be paid when merchandise produced in an FTZ using dumped or subsidized inputs enters the U.S. for consumption. However, that Board requirement does not address the use of subzones to avoid paying antidumping and countervailing duties when products made in an FTZ with dumped or subsidized inputs are exported.
Recently there was a hearing before the Foreign-Trade Zone Board regarding this important issue, and in response we urge you to close the Foreign-Trade Zones loophole and take the necessary steps to see that the Foreign-Trade Zones program is not jeopardized by the approval of subzones that undercut our trade laws.
Thank you for your prompt attention to this matter. Please do not hesitate to contact any of our offices if you need additional information.
Sincerely,
Rep. PETER J. VISCLOSKY
Rep. CHARLIE WILSON
Rep. JOHN MURTHA
Rep. ALAN MOLLOHAN
Rep. TIM HOLDEN
Rep. DAN LIPINSKI
Rep. JOHN BOCCIERI
Rep. CHRIS CARNEY
Rep. DEBBIE HALVORSON
Rep. BART STUPAK
Rep. JIM OBERSTAR
Rep. MIKE DOYLE
Rep. DENNIS KUCINICH
Rep. BETTY SUTTON
Rep. NICK RAHALL |
|
|
