The USITC and the U.S. Department of Commerce are responsible for conducting antidumping (AD) and countervailing duty (CVD) (subsidy) investigations and five-year (sunset) reviews under Title VII of the Tariff Act of 1930. Under this law, U.S. industries may petition the USITC and Commerce for relief from imports that are sold in the United States at less than fair value ("dumped") or that benefit from countervailable subsidies provided through foreign government programs ("subsidized"). Dumping and certain subsidizing are considered unfair trade practices.
The USITC and the U.S. Department of Commerce both have roles in these investigations, but each addresses a different question. Commerce determines whether the alleged dumping or subsidizing is happening, and if so, the margin of dumping or amount of subsidy. The USITC determines whether the U.S. industry is materially injured or threatened with material injury by reason of the imports under investigation. If both Commerce and the USITC reach affirmative final determinations on their individual questions, then Commerce will issue an antidumping duty order to offset the dumping or a countervailing duty order to offset the subsidy.
:: AD/CVD Five-Year (Sunset) Reviews
The Department of Commerce must revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless Commerce and the USITC determine that doing so would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.
Each agency conducts reviews on its separate question. If either agency makes a negative determination, the antidumping or countervailing duty order will be revoked. If both agencies make affirmative determinations, the antidumping or countervailing duty order will remain in place.
:: Global and Special Safeguard Investigations
The USITC is responsible for conducting global safeguard (escape clause) and market disruption investigations under the Trade Act of 1974.