AD/CVD Update
September 18, 2014

ANNOUNCEMENTS

On July 31st, the U.S. International Trade Commission (“USITC”) released The Year in Trade 2013, its annual overview of the previous year's trade-related activities.  See  http://www.usitc.gov/research_and_analysis/commission_publication_4481.htm. The publication reviews U.S. international trade laws and actions under these laws, activities of the World Trade Organization (“WTO”), and developments regarding U.S. free trade agreements (“FTAs”), FTA negotiations, and U.S. bilateral trade relations with major trading partners in 2013.  The Year in Trade 2013 also includes complete listings of antidumping, countervailing duty, safeguard, intellectual property rights infringement, and section 301 cases undertaken by the U.S. government in 2013. 

NEW AD\CVD INVESTIGATIONS

Boltless Steel Shelving Units Prepackaged For Sale From China

On August 26th, new antidumping and countervailing duty petitions were filed with the USITC and the U.S. Department of Commerce (“Commerce”) on behalf of Edsal Manufacturing Co., Inc. against imports of boltless steel shelving units prepackaged for sale from China.  The alleged dumping margins range from 33 percent to 267 percent, and 20 countervailable subsidy programs are alleged.  The USITC is set to vote on the preliminary injury determination on October 10th.  Assuming the ITC issues an affirmative determination, Commerce should issue preliminary antidumping and countervailing duty determinations within about six months.   Kelley Drye & Warren is representing Edsal Manufacturing Co. in these investigations.

Carbon and Certain Alloy Steel Wire Rod from China

On September 2nd, Commerce announced its affirmative preliminary determination in the antidumping duty investigation of imports of carbon and certain alloy steel wire rod from the People’s Republic of China.  Commerce determined that imports of subject merchandise are being sold in the U.S. at less than fair value and established preliminary dumping margins of 106.19% for eight producer/exporter combinations and 110.25% for all other companies. Commerce also preliminarily determined that critical circumstances exist with respect to the China-wide entity, but not with respect to the separate rate companies. As a result of the preliminary affirmative determinations, Commerce will instruct U.S. Customs and Border Protection (“CBP”) to require cash deposits based on these preliminary rates.  Kelley Drye & Warren is representing petitioners ArcelorMittal USA LLC, Charter Steel, Evraz Pueblo, Gerdau Ameristeel US Inc., and Keystone Consolidated Industries, Inc.  Commerce is due to issue its final determination in the antidumping investigation on November 13, 2014.  The USITC is scheduled to issues its final determination in December 2014.

Sugar From Mexico

On August 26, 2014, Commerce announced its affirmative preliminary determination in the countervailing duty investigation of imports of sugar from Mexico.  Commerce preliminary calculated subsidy margins ranging from 2.99 to 17.01 percent.  As a result of the preliminary affirmative determinations, Commerce will instruct CBP to require cash deposits based on these preliminary rates.  Commerce is scheduled to announce its final determinations on or about January 7, 2015 and the USITC is scheduled to make its final determination in late February 2015.  Commerce has postponed the issuance of its preliminary determination in the companion antidumping duty investigation until October 24, 2014.

Grain Oriented Electrical Steel (GOES) from Germany, Japan and Poland

On August 27th, the USITC determined that a U.S. industry is neither materially injured nor threatened with material injury by reason of imports of grain-oriented electrical steel (“GOES”) from Germany, Japan, and Poland that Commerce had determined were sold in the United States at less than fair value at less than fair value. Chairman Broadbent, Vice Chairman Pinkert, and Commissioners Williamson, Johanson, and Kieff voted in the negative, while Commissioner Schmidtlein voted in the affirmative.  As a result, no antidumping duty orders will be issued against these three countries.  The USITC is scheduled to make its final injury determination with regard to China, the Czech Republic, Korea, and Russia on October 23, 2014.

Ferrosilicon from the Russian Federation and Venezuela

On August 26th, the USITC determined that a U.S. industry is neither materially injured nor threatened with material injury by reason of imports of ferrosilicon from Venezuela that Commerce had determined were sold in the United States at less than fair value by a margin of 22.84 percent.  All six commissioners voted in the negative.  As a result of the USITC’s negative determinations, no antidumping duty order will be issued.  With regard to Russia, the USITC terminated its investigation in July, following Commerce’s final determination that imports from Russia were not being sold at less than fair value.

Steel Threaded Rod from India

On August 6th, the USITC determined that a U.S. industry is neither materially injured nor threatened with material injury by reason of imports of certain steel threaded rod from India that Commerce had determined were subsidized and sold in the United States at less than fair value.  Chairman Broadbent, Vice Chairman Pinkert, and Commissioners Williamson, Johanson, and Kieff voted in the negative.  Commissioner Schmidtlein did not participate in these investigations.  As a result of the USITC’s negative determinations, no antidumping and countervailing duty orders will be issued.

Crystalline Silicon Photovoltaic Products from China and Taiwan

On July 25th, Commerce announced its affirmative preliminary determinations in the antidumping duty investigations of imports of certain crystalline silicon photovoltaic products, solar energy products, from China and Taiwan.  Commerce preliminarily assigned dumping margins ranging from 26.33 to 165.04 percent for China and 20.86 to 27.59 percent for Taiwan.  As a result of the preliminary affirmative determinations, Commerce will instruct CBP to require cash deposits based on these preliminary rates as adjusted for export and domestic subsidies found in the companion countervailing duty investigation.  Commerce is scheduled to announce its final determinations in mid-December 2014. 

Passenger Vehicle and Light Truck Tires from China

On July 22nd, the USITC determined that there is a reasonable indication that a U.S. industry is materially injured or threatened with material injury by reason of imports of certain passenger vehicle and light truck tires from China that are allegedly subsidized and sold in the United States at less than fair value.  All six Commissioners voted in the affirmative.  As a result of the Commission’s affirmative determinations, Commerce will continue with its investigations on imports of these products from China, with its preliminary countervailing duty determinations due by November 21, 2014, and its antidumping duty determinations due on or about December 1, 2014.

Steel Nails from India, Korea, Malaysia, Oman, Taiwan, Turkey and Vietnam

On July 11th, the USITC determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of certain steel nails from Korea, Malaysia, Oman, Taiwan, and Vietnam that are allegedly subsidized and sold in the United States at less than fair value.  The Commission further determined that imports of these products from India and Turkey are negligible.  Imports are generally deemed “negligible” if they amount to less than 3 percent (4 percent in the case of imports from India, a developing country) of all such merchandise imported into the United States within the most recent 12-month period for which data are available preceding the filing of the petition.  As a result of the Commission’s findings of negligibility, the investigations on imports of these products from India and Turkey were terminated.  Chairman Broadbent, Vice Chairman Pinkert, and Commissioners Williamson, Johanson, and Schmidtlein voted in the affirmative with respect to Korea, Malaysia, Oman, Taiwan, and Vietnam, and they found that imports from India and Turkey were negligible.  Commissioner Kieff did not participate in these investigations.  Commerce will continue to conduct its investigations on imports of these products from Korea, Malaysia, Oman, Taiwan and Vietnam.  Commerce’s preliminary countervailing duty determinations are due in late October and preliminary antidumping duty determinations are due in early November 2014.

Calcium Hypochlorite from China

On July 17, 2014, Commerce announced its affirmative preliminary determination in the antidumping duty investigation of imports of calcium hypochlorite from China.  Commerce preliminarily determined that calcium hypochlorite from China has been sold in the United States at a dumping margin of 210.52 percent.  Commerce is scheduled to announce its final determination by mid-December 2014.

Oil Country Tubular Goods from India, Korea, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and Vietnam

On July 11th, Commerce announced its affirmative final determinations in the antidumping duty investigations of imports of oil country tubular goods (“OCTG”) from India, Korea, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and Vietnam, and countervailing duty investigations of imports of OCTG from India and Turkey.  Commerce determined that OCTG has been sold in the United States at the following dumping margin ranges:  India (2.05 to 9.91%), Korea (9.89 to 15.75%), Philippines (9.88%), Saudi Arabia (2.69%), Taiwan (0.00 to 2.34%), Thailand (118.32%), Turkey (0.00 to 35.86%), Ukraine (7.47%) and Vietnam (24.22 to 111.47%).  Commerce determined the following final subsidy rates:  India (5.67 to 19.11%) and Turkey (2.53 to 15.89%).  On July 11th, Commerce also announced that it had reached an agreement to suspend the AD investigation of imports of OCTG from Ukraine.  In the Ukraine investigation, mandatory respondent Interpipe Europe S.A. and all other producers\exporters in Ukraine received final dumping margin of 6.73%.  However, due to the suspension agreement, no antidumping cash deposits will be required, and no duties will be collected, while the agreement remains in effect. 

On August 22nd, the USITC determined that a U.S. industry is materially injured or threatened with material injury by reason of imports of certain oil country tubular goods from India, Korea, Taiwan, Turkey, Ukraine, and Vietnam. The Commission, however, determined that the U.S. industry is not materially injured or threatened with material injury by reason of imports of these products from the Philippines and Thailand. As a result of the USITC's affirmative determinations, Commerce will issue countervailing duty orders on imports of these products from India and Turkey and antidumping duty orders on imports from India, Korea, Taiwan, Turkey, and Vietnam. No orders will be issued on imports of these products from Philippines and Thailand. In addition, a suspension agreement previously announced by Commerce concerning OCTG from Ukraine will remain in effect.

SUNSET REVIEWS

Malleable Iron Pipe Fittings from China / Steel Threaded Rod from China

On July 22nd, the USITC unanimously determined that revoking the existing antidumping duty order on malleable iron pipe fittings from China as well as the existing antidumping duty order on steel threaded rod 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 determinations, both of these orders will remain in place for an additional five years.

Frozen Fish Fillets From Vietnam

On September 5, 2014, all six commissioners voted to expedite its second five-year ("sunset") review concerning the antidumping duty order on certain frozen fish fillets from Vietnam.  As a result of this vote, the Commission will conduct an expedited review to determine whether revocation of this order would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

Saccharin from China / Citric Acid and Citrate Salts from Canada and China

On July 7th, the USITC voted to conduct full five-year reviews concerning the countervailing duty order on citric acid and certain citrate salts from China and the antidumping duty orders on citric acid and certain citrate salts from Canada and China.  On August 4th, the USITC voted to conduct full five-year sunset review concerning the antidumping duty order on Saccharin from China.  As a result of these votes, the Commission will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.