US Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of cast iron soil pipe fittings from China.

The Commerce Department preliminarily determined that exporters from China received countervailable subsidies of 8.66 to 102.31 percent.

As a result of today’s decision, Commerce will instruct US Customs and Border Protection (CBP) to collect cash deposits from importers of cast iron soil pipe fittings from China based on these preliminary rates.

“The United States is committed to free, fair and reciprocal trade,” said Ross, “and will continue to validate the information provided to us that brought us to this decision.”

In 2016, imports of cast iron soil pipe fittings from China were valued at $8.6 million.

The petitioner is the Cast Iron Soil Pipe Institute (IL), the members of which are AB&I Foundry (CA), Charlotte Pipe & Foundry (NC), and Tyler Pipe (TX).

Commerce is currently scheduled to announce its final CVD determination on or about April 24, 2018.  If Commerce makes an affirmative final determination and the US International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.

The CVD law provides US businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of foreign government unfair subsidization of imports into the United States. Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks, and production inputs are subject to “countervailing duties” aimed at directly countering those subsidies.

Commerce currently maintains 412 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.