Today, the U.S. Department of Commerce announced the initiation of new antidumping duty (AD) investigations to determine whether steel propane cylinders from China, Taiwan, and Thailand are being dumped in the United States, and a new countervailing duty investigation to determine if producers in China are receiving unfair subsidies.
These AD and CVD investigations were initiated based on petitions filed by Worthington Industries (Columbus, OH) and Manchester Tank & Equipment Co. (Franklin, TN) on May 22, 2018.
The alleged dumping margins are: China from 55.41 to 108.60 percent, Taiwan from 27.19 to 66.20 percent, and Thailand 47.67 to 122.48 percent.
There are 18 alleged subsidy programs for China (two loan programs, three export credit/guarantee programs, five tax programs, three provision of goods for less than adequate remuneration programs, and five grant programs).
In the AD investigations, Commerce will determine whether imports of steel propane cylinders from China, Taiwan, and Thailand, are being dumped in the U.S. market at less than fair value.
In the CVD investigation, Commerce will determine whether Chinese producers of steel propane cylinders are receiving unfair government subsidies.
If Commerce makes affirmative findings in these investigations, and if the United States International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of steel propane cylinders from China, Taiwan, and/or Thailand are causing injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2017, imports of steel propane cylinders from China, Taiwan, and Thailand were valued at an estimated $89.8 million, $10.1 million, and $14.1 million, respectively.
for a fact sheet on these initiations.
During Commerce’s investigations into whether steel propane cylinders from China, Taiwan, and Thailand are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before July 6, 2018. If the ITC determines that there is injury or threat of injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for August 15, 2018, and preliminary AD determinations scheduled for October 29, 2018, unless these deadlines are extended.
If Commerce determines in its preliminary finding that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing steel propane cylinders from China, Taiwan, and Thailand.
Final determinations by Commerce in these cases are scheduled for October 29, 2018 for the CVD investigation, and January 14, 2019 for the AD investigations, but those dates may be extended. If Commerce finds that products are not being dumped and/or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.
Enforcement of U.S. trade law is a prime focus of the Trump Administration. Commerce has initiated 118 new antidumping and countervailing duty investigations since the beginning of the Trump Administration. This is 59 percent more than the 74 initiations in the last 508 days of the previous administration.
The AD and CVD laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of dumping unfairly priced and unfairly subsidized imports into the United States. Commerce currently maintains 449 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing the U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments 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, are subject to CVD duties.