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Commerce Department Sides with U.S. Cold-Rolled, Corrosion-Resistant Producers in Circumvention Case
05/18/2018 - Overseas producers were circumventing U.S. anti-dumping measures by converting Chinese-made, hot-rolled coils to corrosion-resistant and cold-rolled steel in Vietnam, the U.S. Commerce Department ruled on Thursday.
As a result, corrosion-resistant and cold-rolled sheet made from Chinese substrate, but produced in Vietnam, will be subject to the same anti-dumping and countervailing duties applied to the finished products from China.
The U.S. assesses an anti-dumping duties of 199.43% on Chinese corrosion-resistant sheet and 265.79% on cold-rolled sheet.
United States Steel Corporation, which was one of the companies that filed the initial circumvention complaint, praised the decision.
“We applaud (Commerce Secretary Wilbur Ross’) final circumvention decision, which represents the administration’s full commitment to using all tools available to combat unfair trade and restore a level playing field for the domestic steel industry,” the company said.
In addition to U. S. Steel, Nucor Corp., ArcelorMittal USA, California Steel Industries, Steel Dynamics Inc. and AK Steel Corp. also had filed circumvention complaints with the Commerce Department.
“This was a straightforward case of circumvention, and we’re pleased that the Commerce Department is closing this loophole and effectively enforcing U.S. trade laws,” said Nucor attorney Alan H. Price, chairman of the international trade practice at the firm Wiley Rein.
“Immediately after our cases on corrosion resistant and cold-rolled steel from China were filed, Chinese producers began processing their Chinese steel substrate in Vietnam to evade anti-dumping and countervailing duties,” he said. “The decision will help ensure that the domestic steel industry receives the full benefit of the trade orders that we fought hard to obtain, instead of having this critical relief undermined by trade cheats.”
Separately, the U.S. International Trade Commission has issued a final determination in a case involving cold-drawn mechanical tubing from China, Germany, India, Italy, Korea, and Switzerland, ruling that domestic producers have suffered a material injury from dumped product.
The decision clears the way for the Commerce Department to impose anti-dumping duties of between 8.3% and 186.9%.
