US Initiates Antidumping Duty Investigations of Imports of Forged Steel Fittings - Global Trade Magazine
  November 7th, 2017 | Written by

US Initiates Antidumping Duty Investigations of Imports of Forged Steel Fittings

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  • Commerce investigation includes countervailing duty proceeding of imports of Chinese fittings.
  • In AD investigations, Commerce will determine whether imports are being dumped in US at less than fair value.
  • In CVD investigation, Commerce will determine whether Chinese producers are receiving unfair government subsidies.

US Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) investigations to determine whether imports of forged steel fittings from China, Italy, and Taiwan are being dumped in the United States, and a countervailing duty (CVD) investigation to determine whether producers of forged steel fittings in China are receiving alleged unfair subsidies.

“The Department of Commerce intends to act swiftly to halt any unfair trade practices, while also assuring a full and fair assessment of the facts,” said Secretary Ross. “The US market is the most open in the world, but we must take action to ensure US businesses and workers are treated fairly if our rules are being broken.”

The AD and CVD investigations were initiated based on petitions filed by the Bonney Forge Corporation (Mount Union, PA), and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (Pittsburgh, PA). The estimated dumping margins alleged by the petitioners are 142.72 percent for China, 18.66 to 80.20 percent for Italy, and 116.17 percent for Taiwan. The unfair subsidy programs alleged by the petitioners relate to inputs from government authorities for less than adequate remuneration, taxes, grants, and preferential loans.

In the AD investigations, the Commerce Department will determine whether imports of forged steel fittings from China, Italy, and Taiwan are being dumped in the US market at less than fair value.

In the CVD investigation, the Commerce Department will determine whether Chinese producers of forged steel fittings are receiving unfair government subsidies.

If the Commerce Department determines that forged steel fittings from China, Italy, and Taiwan are being dumped into the US market and China is providing unfair government subsidies, and if the US International Trade Commission (ITC) determines that dumped and/or unfairly subsidized US imports of forged steel fittings from China, Italy, and Taiwan are causing injury to the US industry, the Commerce Department will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.

In 2016, imports of forged steel fittings from China, Italy, and Taiwan were valued at an estimated $78.4 million, $21.2 million, and $15.1 million, respectively.

During the Commerce Department’s investigations into whether forged steel fittings are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the US industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before November 20, 2017. If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with a preliminary CVD determination scheduled for December 29, 2017, and preliminary AD determinations scheduled for March 14, 2018, unless these deadlines are extended.

If the Commerce Department preliminarily determines that dumping or unfair subsidization is occurring, then it will instruct US Customs and Border Protection to start collecting cash deposits from all US companies importing the subject forged steel fittings from China, Italy, and Taiwan.

Final determinations by the Commerce Department in these cases are scheduled for March 14, 2018, for the CVD investigation, and May 29, 2018, for the AD investigations, but those dates may be extended. If the Commerce Department finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the US industry, then the investigations will be terminated and no duties will be applied.