Commerce Preliminarily Finds Subsidization of Galvanized Wire from China
08/31/2011 - The Department of Commerce announced its affirmative preliminary determination in the countervailing duty investigation of imports of galvanized steel wire from P.R. China.
The Department of Commerce announced its affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of galvanized steel wire from P.R. China.
Commerce preliminarily determined that Chinese producers/exporters have received countervailable subsidies ranging from 21.59 to 253.07% ad valorem.
Mandatory respondent, the Huayuan Companies, received a preliminary net subsidy rate of 48.81% ad valorem, while the Bao Zhang Companies received a rate of 21.59% ad valorem. Mandatory respondent, M&M Industries Co. Ltd., received a preliminary net subsidy rate of 48.90 percent ad valorem.
Commerce also assigned one mandatory respondent, Shandong Hualing Hardware and Tool Co., Ltd., an adverse facts available (AFA) rate of 253.07% ad valorem, for failing to respond to requests for information.
All other Chinese producers/exporters received a rate of 44.46% ad valorem.
As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.
The petitioners for this investigation are: Davis Wire Corp. (Calif.), Johnstown Wire Technologies, Inc. (Pa.), Mid-South Wire Co., Inc. (Tenn.), National Standard, LLC (Mich.), and Oklahoma Steel & Wire Co., Inc. (Okla.).
The products covered by this investigation is galvanized steel wire, which is a cold-drawn carbon quality steel product in coils, of solid, circular cross section with an actual diameter of 0.5842 mm (0.0230 in) or more, plated or coated with zinc (whether by hot-dipping or electroplating).
In 2010, imports of galvanized wire from China were valued at an estimated $53.9 million; however, the galvanized wire subject to this investigation can be classified within HTSUS basket categories that contain products beyond the scope of the investigation.
Commerce is currently scheduled to make its final determination in January 2012.
If Commerce makes an affirmative final determination, and the U.S. International Trade Commission (ITC) makes an affirmative final determination that imports of galvanized wire from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue a CVD order.
The ITC is scheduled to make its final injury determination in February 2012.
