A Separate Rate is the individually calculated antidumping or countervailing duty rate granted to an exporter in a non-market economy (NME) country that demonstrates independence from government control of its export activities. The leading NMEs designated by the Commerce Department include China and Vietnam.
In NME cases, Commerce starts from a default assumption that the entire NME country acts as a single enterprise controlled by the state — and assigns a single high "country-wide rate" (typically based on adverse facts available and often exceeding 100%). To escape this rate, exporters must demonstrate:
- Absence of de jure control — No government laws or regulations restricting export activities
- Absence of de facto control — Specifically: autonomy from government in selecting management, retention of proceeds from sale, control over pricing and output decisions, and authority to negotiate and sign contracts
Exporters demonstrating independence are eligible for a separate rate. Mandatory respondents receive a fully calculated individual rate. Non-mandatory cooperating exporters receive a "separate-rate average" (the weighted average of mandatory respondent rates, similar in concept to the all-others rate in market-economy cases).
Separate-rate applications must be filed in each administrative review. Failing to file means the exporter reverts to the country-wide rate. The system is heavily used in China cases, where hundreds of exporters maintain separate-rate status across active orders.