Commerce Finds Dumping, Subsidization of Galvanized Wire from P.R. China, Mexico
03/22/2012 - The Department of Commerce has made affirmative final determinations in the countervailing (CVD) and antidumping duty (AD) investigations of imports of galvanized steel wire from P.R. China (AD and CVD) and Mexico (AD).
The Department of Commerce has made affirmative final determinations in the countervailing (CVD) and antidumping duty (AD) investigations of imports of galvanized steel wire (galvanized wire) from P.R. China (AD and CVD) and Mexico (AD).
For the purpose of AD investigations, dumpingoccurs when a foreign company sells a product in the United States at less than fair value. For the purpose of CVD investigations, countervailable subsidiesare financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent upon export performance or upon the use of domestic goods over imported goods.
Commerce determined that producers/exporters from China and Mexico have sold galvanized wire in the United States at margins ranging from 194.00 to 235.00%, and 20.89 to 37.69%, respectively. Commerce also determined that Chinese producers/exporters have received countervailable subsidies ranging from 19.06 to 223.27%.
In the antidumping investigations for China, mandatory respondents Tianjin Honbase Machinery Manufactory Co., Ltd.; and Shanghai Bao Zhang Industry Co., Ltd., Anhui Bao Zhang Metal Products Co., Ltd., and B&Z Galvanized Wire Industry received the China-wide rate of 235.00% as adverse facts available (AFA) because both companies refused to participate in mandatory verifications. Mandatory respondent Tianjin Huayuan Metal Wire Products Co., Ltd. received the China-wide rate of 235.00%, because it did not receive a separate rate. Finally, because there were Chinese exporters that did not respond to Commerce’s request for information, the AFA rate of 235.00% has been assigned to the PRC-wide entity.
Sixteen exporters qualified for a separate dumping rate of 194.00%, while all other Chinese exporters received a dumping rate of 235.00%.
In the antidumping investigations for Mexico, mandatory respondent Deacero S.A. de C.V. received a final dumping rate of 20.89% and mandatory respondent Aceros Camesa, S.A. de C.V. received a final dumping rate of 37.69%. All other Mexican exporters received a final dumping rate of 22.43%.
As a result of these final determinations, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these final rates. In the countervailing duty investigation for China, mandatory respondent Shanghai Bao Zhang Industry Co., Ltd and its cross-owned affiliated companies received a final subsidy rate of 19.06%. In addition, Commerce assigned three mandatory respondents — M&M Industries Co. Ltd, Shandong Hualing Hardware and Tool Co., Ltd., and the Huayuan Companies — a subsidy rate based, based on AFA, of 223.27%, for failing to cooperate in the investigation.
All other Chinese producers/exporters received a final subsidy rate of 19.06 percent.
Cash deposits of CVD duties on imports of galvanized wire will not be required unless the U.S. International Trade Commission (ITC) reaches a final affirmative determination of injury to the domestic industry.
The scope of these investigations covered galvanized steel wire, a cold-drawn carbon quality steel product in coils, of circular or approximately circular, solid cross section with any actual diameter of 0.5842 mm (0.0230 inch) or more, plated or coated with zinc. Galvanized steel wire in coils of 15 feet or less which is pre-packed in individual retail packages is specifically excluded from the scope of these investigations. Petitioners for these investigations include Davis Wire Corp. (CA), Johnstown Wire Technologies, Inc. (PA), Mid-South Wire Co., Inc. (TN), National Standard, LLC (MI), and Oklahoma Steel & Wire Co., Inc. (OK).
The ITC is currently scheduled to issue its final injury determination on or before May 3, 2012. If the ITC makes affirmative final determinations that imports of galvanized wire from China and/or Mexico materially injure or threaten to injure the domestic industry, Commerce will issue CVD and AD orders.
