The U.S. Department of Commerce has issued affirmative final determinations in the countervailing duty (CVD) investigation of stainless steel flanges from China, and in the antidumping duty (AD) investigations of imports of tool chests and cabinets from China and Vietnam.
On April 6, 2018, U.S. Secretary of Commerce Wilbur Ross announced the affirmative final determination in the CVD investigation of stainless steel flanges from China, finding that exporters from China received countervailable subsidies of 174.73%.
For the purpose of CVD investigations, a countervailable subsidy is financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods.
As a result of these decisions, the Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of stainless steel flanges from China based on these final rates.
The products covered by this investigation are certain forged stainless steel flanges, whether unfinished, semi-finished, or finished.
In 2016, imports of stainless steel flanges from China and India were valued at an estimated US$16.3 million and $32.1 million, respectively.
Enforcement of U.S. trade law is a prime focus of the Trump administration, said the agency. “From January 20, 2017, through April 4, 2018, the Commerce Department has initiated 102 antidumping and countervailing duty investigations—a 96 percent increase from the same period in 2016-2017.”
The U.S. International Trade Commission (ITC) is conducting an investigation to determine whether or not the domestic industry is harmed by imports of stainless steel flanges from China. The ITC is currently scheduled to make its final injury determination on or before May 21, 2018.
Dumping of tool chests and cabinets
Meanwhile, on April 5, Ross announced affirmative final determinations in the AD investigations of imports of tool chests and cabinets from China and Vietnam.
“The United States is committed to free, fair, and reciprocal trade with these countries, and this case was decided strictly on a full and fair assessment of the facts,” said Ross.
“The Department of Commerce will defend U.S. companies being hurt by foreign manufacturers that refuse to play by the rules. There are 161 antidumping or countervailing duty orders in place against China, and it is time for them to realize that their actions have consequences.”
The Commerce Department determined that exporters from China have sold tool chests and cabinets in the United States at 97.11% to 244.29% at less than fair value.
Commerce determined that exporters from Vietnam have sold tool chests and cabinets in the United States at 327.17% at less than fair value.
For the purpose of AD investigations, dumping occurs when a foreign company sells an imported product in the United States at less than fair value.
The scope of these investigations covers certain metal tool chests and tool cabinets, with drawers, from China and Vietnam.
As a result of these decisions, Commerce will instruct U.S. Customs to continue to collect cash deposits from importers of tool chests and cabinets from China and Vietnam based on these final rates.
In 2016, imports of tool chests and cabinets from China and Vietnam were valued at an estimated $230 million and $77 million, respectively.
The ITC is scheduled to issue its final determinations on or around May 18, 2018.
Photo: CC BY-SA 3.0
