The United States has updated its list of developing and least-developed countries pertaining to countervailing duty (CVD) law.  The most notable change is that India has been removed from this list due to its share of global trade, one of the several factors considered in creating the list of developing countries.  Prior to the change in designation, if India faced a CVD investigation and the subsidy margin was below the de minimis threshold of 2%, the United States would be forced to conclude that there was no subsidization and the investigation would be terminated with respect to India.  With the change in designation, this preferential margin threshold is no longer available to India in CVD investigations initiated by the United States.  Going forward, the United States would terminate a CVD investigation against India only if the new de minimis threshold, a subsidy margin below 1%, is satisfied.  Other developing countries ineligible for the 2% de minimis standard due to their share of global trade are Brazil, Indonesia, Malaysia, Thailand, and Vietnam.

If you have any questions or concerns regarding India’s change in designation or another country’s status under the new list of developing countries, please contact Husch Blackwell’s International Trade and Supply Chain team.