Today, the U.S. Department of Commerce announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether certain steel wheels 12 to 16.5 inches in diameter from China are being dumped in the United States and to determine if producers in China are receiving unfair subsidies.
These investigations were initiated based on petitions filed by Dexstar Wheel, a division of Americana Development, Inc. on August 8, 2018.
In the antidumping duty investigation, Commerce will determine whether imports of certain steel wheels 12 to 16.5 inches in diameter from China are being dumped in the U.S. market at less than fair value.
The alleged dumping margins range from 30.48 to 44.35 percent.
In the countervailing duty investigation, Commerce will determine whether Chinese producers of certain steel wheels 12 to 16.5 inches in diameter are receiving unfair government subsidies.
There are 52 subsidy programs alleged, including preferential lending programs, export credit subsidies, export credit insurance subsidies, export credit guarantees, provisions of goods and services for less than adequate remuneration, direct tax exemptions and reductions, indirect tax exemptions and reductions, and grants.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of certain steel wheels 12 to 16.5 inches in diameter from China are causing injury to U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2017, U.S. imports of certain steel wheels 12 to 16.5 inches in diameter from China were valued at an estimated $73.8 million.
Click HERE for a fact sheet on these initiations.
During Commerce’s investigations into whether certain steel wheels 12 to 16.5 inches in diameter from China are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before September 24, 2018. If the ITC preliminarily determines that there is injury or threat of injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for November 1, 2018, and preliminary AD determination scheduled for January 15, 2019, unless these deadlines are extended.
If Commerce preliminarily determines 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 certain steel wheels 12 to 16.5 inches in diameter from China.
Final determinations by Commerce in these cases are scheduled for January 15, 2019, for the CVD investigation, and April 1, 2019, for the AD investigation, 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 U.S. industry, then the investigations will be terminated and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 122 new antidumping and countervailing duty investigations – this is a 190 percent increase from the comparable period in the previous administration.
Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Commerce currently maintains 456 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 U.S. trade laws and does so through an impartial, transparent process that abides by international law 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 antidumping duties. Companies that receive unfair subsidies from their governments, in the form of grants, loans, equity infusions, tax breaks or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.