Commerce Initiates Circumvention Investigation on CTL Plate from China
04/30/2010 - The U.S. Department of Commerce is initiating an antidumping circumvention inquiry to determine whether imports of cut-to-length carbon steel plate from P.R. China are circumventing the duty order by containing small amounts of boron.
The U.S. Department of Commerce is initiating an antidumping circumvention inquiry to determine whether imports of cut-to-length (CTL) carbon steel plate from P.R. China are circumventing the duty order. The action is in response to a request from domestic producers ArcelorMittal USA, Inc.; Nucor Corp.; SSAB N.A.D.; Evraz Claymont Steel; and Evraz Oregon Steel Mills.
The domestic producers made the request in February with respect to CTL plate, produced by Wuyang Iron and Steel Co., Ltd. or imported by Stemcor USA Inc., that contains 0.0008% or more boron by weight. They believe that such plates are circumventing the order because of minor alterations—i.e., containing small amounts of boron resulting in the classification of the plate as “alloy” steel plate.
The domestic producers also noted that Commerce has made a previous ruling that CTL plate produced by Tianjin Iron and Steel Co., Ltd. and/or imported by Toyota Tsusho America with small amounts of boron added are circumventing the order on CTL plate from China.
The addition of boron at levels recognized as alloy amounts by the tariff schedule involve minimal additional cost, according to the domestic producers. They cite Commerce's finding in a previous ruling that reaching the 0.0008% threshold for boron involved a cost amounting to considerably less than one-third of one percent of the sales price.
Based on such information, Commerce finds there is sufficient basis to initiate an antidumping circumvention inquiry to determine whether the merchandise involves a minor alteration that is so insignificant as to render the resulting merchandise subject to the order.
In making this determination, Commerce also intends to address whether its circumvention ruling applies to particular producers, exporters, and/or importers or to all U.S. imports of CTL plate from China. It currently is not ordering the suspension of liquidation of entries of any additional merchandise. However, if Commerce issues a preliminary affirmative determination, it will then instruct U.S. Customs and Border Protection to suspend liquidation and require a cash deposit of estimated duties, at the applicable rate, for each unliquidated entry of merchandise for consumption on or after the date of initiation of the inquiry.
Commerce intends to notify the International Trade Commission in the event of an affirmative preliminary determination of circumvention.
Commerce says that more time is needed to make a final ruling than the 45 days requested by the domestic producers. It plans to issue its final determination within 300 days of publication of the initiation notice.
