U.S. Makes Final Determination in Trade Case vs. Rebar from Mexico and Turkey
09/11/2014 - On 9 September 2014, the Department of Commerce (Commerce) announced the affirmative final determination in the antidumping duty (AD) investigation of imports of rebar from Mexico, the affirmative final determination in the countervailing duty (CVD) investigation of imports of rebar from Turkey, and the negative final determination in the AD investigation of imports of rebar from Turkey.
The AD and CVD laws provide U.S. businesses and workers with a transparent and internationally accepted mechanism to seek relief from the market-distorting effects caused by injurious dumping and unfair subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.
For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, countervailable subsidies are 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 either upon export performance or upon the use of domestic goods over imported goods.
Commerce determined that rebar from Mexico has been sold in the United States at dumping margins ranging from 20.58% to 66.70%. Commerce determined that no dumping occurred with regard to rebar from Turkey.
Commerce also determined that producers/exporters of rebar from Turkey received countervailable subsidies ranging from 0.74% (which is de minimis) to 1.25%.
In the Mexico AD investigation, mandatory respondent Deacero S.A.P.I. de C.V. (formerly, Deacero S.A. de C.V.) received a final dumping margin of 20.58%. Mandatory respondent Grupo Acerero S.A. de C.V. and voluntary respondent Grupo Simec were assigned dumping margins of 66.70% based on adverse facts available because these companies failed to cooperate to the best of their ability. All other producers/exporters in Mexico received a final dumping margin of 20.58%.
In the Turkey AD investigation, mandatory respondents Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S. and Icdas Celik Enerji Tersane ve Ulasim Sanayi A.S. received final dumping margins of 0.00%. Because the AD margins in this investigation are zero, this investigation is terminated.
In the CVD investigation, mandatory respondents Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S. and Icdas Celik Enerji ve Ulasim Sanayi A.S. received final subsidy rates of 0.74% and 1.25%, respectively. All other producers/exporters in Turkey have been assigned a final subsidy rate of 1.25%. The CVD rate calculated for Habas Sinai ve Tibbi Gazlar Istihsal is de minimis and, therefore, the company will be excluded from any order should one be issued.
Further, in the Mexico AD investigation, Commerce determined that critical circumstances exist with regard to all imports of rebar from Mexico. In the CVD investigation, Commerce determined that critical circumstances exist with regard to producers/exporters of rebar in Turkey that are subject to the all others rate.
As a result of the affirmative final determinations, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits equal to the applicable weighted-average AD and CVD rates. If the U.S. International Trade Commission (ITC) issues affirmative final injury determinations, AD and CVD orders will be issued.
The petitioner for these investigations is the Rebar Trade Action Coalition and its individual members: Nucor Corporation, Gerdau Ameristeel U.S. Inc., Commercial Metals Company, Cascade Steel Rolling Mills, Inc., and Byer Steel Group, Inc.
For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, countervailable subsidies are 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 either upon export performance or upon the use of domestic goods over imported goods.
Commerce determined that rebar from Mexico has been sold in the United States at dumping margins ranging from 20.58% to 66.70%. Commerce determined that no dumping occurred with regard to rebar from Turkey.
Commerce also determined that producers/exporters of rebar from Turkey received countervailable subsidies ranging from 0.74% (which is de minimis) to 1.25%.
In the Mexico AD investigation, mandatory respondent Deacero S.A.P.I. de C.V. (formerly, Deacero S.A. de C.V.) received a final dumping margin of 20.58%. Mandatory respondent Grupo Acerero S.A. de C.V. and voluntary respondent Grupo Simec were assigned dumping margins of 66.70% based on adverse facts available because these companies failed to cooperate to the best of their ability. All other producers/exporters in Mexico received a final dumping margin of 20.58%.
In the Turkey AD investigation, mandatory respondents Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S. and Icdas Celik Enerji Tersane ve Ulasim Sanayi A.S. received final dumping margins of 0.00%. Because the AD margins in this investigation are zero, this investigation is terminated.
In the CVD investigation, mandatory respondents Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S. and Icdas Celik Enerji ve Ulasim Sanayi A.S. received final subsidy rates of 0.74% and 1.25%, respectively. All other producers/exporters in Turkey have been assigned a final subsidy rate of 1.25%. The CVD rate calculated for Habas Sinai ve Tibbi Gazlar Istihsal is de minimis and, therefore, the company will be excluded from any order should one be issued.
Further, in the Mexico AD investigation, Commerce determined that critical circumstances exist with regard to all imports of rebar from Mexico. In the CVD investigation, Commerce determined that critical circumstances exist with regard to producers/exporters of rebar in Turkey that are subject to the all others rate.
As a result of the affirmative final determinations, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits equal to the applicable weighted-average AD and CVD rates. If the U.S. International Trade Commission (ITC) issues affirmative final injury determinations, AD and CVD orders will be issued.
The petitioner for these investigations is the Rebar Trade Action Coalition and its individual members: Nucor Corporation, Gerdau Ameristeel U.S. Inc., Commercial Metals Company, Cascade Steel Rolling Mills, Inc., and Byer Steel Group, Inc.
