AD/CVD Update
March 25, 2014

This article was authored by International Trade Specialist Michael J. Kelleher

NEW INVESTIGATIONS

Carbon and Certain Alloy Steel Wire Rod

On March 14, the United States International Trade Commission (“ITC”) determined that there was a reasonable indication that a U.S. industry was materially injured by reason of imports of carbon and certain alloy steel wire rod from China that were allegedly sold in the United States at less than fair value and that are allegedly subsidized by the government of China.  Five Commissioners voted in the affirmative (and Commissioner Aranoff did not participate in these investigations).  Kelley Drye & Warren is representing petitioners ArcelorMittal USA LLC, Charter Steel, Evraz Pueblo, Gerdau Ameristeel US Inc., and Keystone Consolidated Industries, Inc.  As a result of the ITC’s affirmative determinations, the U.S. Department of Commerce (“Commerce”) will continue to conduct its investigations on imports of this product, with its preliminary antidumping and countervailing duty determinations due in July 2014.

Grain-Oriented Electrical Steel

On March 11, Commerce published its preliminary determination that countervailable subsidies are being provided to producers and exporters of grain-oriented electrical steel (“GOES”) from the People's Republic of China.  See 79 Fed. Reg. 13,617 (Dep’t Commerce Mar. 11, 2014).  Commerce preliminary determined the countervailable subsidy rates to be 49.15% for Baoshan Iron & Steel Co., Ltd., and 49.15% for All-Others.  Id. at 13,618.  Kelley Drye & Warren is representing petitioners AK Steel Corporation, Allegheny Ludlum LLC, and the United Steelworkers.  Commerce is due to issue its Preliminary Determinations in the Antidumping Investigations on GOES from China, the Czech Republic, Germany, Japan, the Republic of Korea, Poland, and the Russian Federation by May 2, 2014.

SUNSET REVIEWS

Persulfates from China

On February 24, the ITC determined that revoking the existing antidumping duty order on persulfates from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.  As a result of the Commission’s affirmative determination, the existing order on imports of this product from China will remain in place.

Laminated Woven Sacks from China

On February 28, the ITC determined that revoking the existing antidumping and countervailing duty orders on laminated woven sacks from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.  As a result of the Commission’s affirmative determination, the existing orders on imports of this product from China will remain in place.

APPEALS

On March 11, the Court of Appeals for the Federal Circuit issued an opinion in Marvin Furniture (Shanghai) Co. v. United States, Appeal No. 2013-1156 (Fed. Cir. Mar. 11, 2014) affirming Commerce’s rescission in a new shipper administrative review involving wooden bedroom furniture from People’s Republic of China.  More specifically, the Court disagreed that Marvin was “eligible” for a new shipper review as a result of its initial request failed to establish the date and volume of the first entry.  Although Marvin ultimately provided correct information to Commerce, it did so after Commerce had instituted the new shipper review.  “Hence, the late information did not operate to make Marvin ‘eligible’ for a new shipper review because a review had already been initiated. . . .”  Given that Commerce must conduct a new shipper review within a determined amount of time, it is reasonable for Commerce to require data on a new shipper’s first entry of subject merchandise as a prerequisite for initiation of a new shipper review.  “As the Trade Court noted, the required information ‘provides the basis upon which Commerce can undertake the review and calculate an individual dumping rate.’” (citing Marvin Furniture, 867 F. Supp. 2d at 1308).  The Court concluded that requiring such “fundamental information” be included in the initial request not only assists Commerce in fulfilling its statutory obligation to conduct a review in a timely manner, but also ensures that a new shipper review is initiated, and that an individual rate is accurately determined, on the basis of all relevant entries.