The U.S. Department of Commerce today announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether aluminum wire and cable from China are being dumped in the United States and to determine if producers in China are receiving unfair subsidies. The alleged dumping margins range from 53.54 to 63.47 percent. In addition, there are 26 subsidy programs alleged, including tax programs, export subsidy programs, grant programs, loan programs, and various LTAR programs.
These antidumping and countervailing duty investigations were initiated based on petitions filed by Encore Wire Corporation (McKinney, TX) and Southwire Company, LLC (Carrollton, GA) on September 21, 2018.
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 aluminum wire and cable from China 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 aluminum wire and cable from China were valued at an estimated $157.2 million.
Click HERE for a fact sheet on these initiations.
During Commerce’s investigations into whether aluminum wire and cable from China 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 November 5, 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 December 17, 2018, and preliminary AD determination scheduled for February 28, 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 aluminum wire and cable from China.
Final determinations by Commerce in these cases are scheduled for March 4, 2019 for the countervailing investigation, and May 14, 2019 for the antidumping 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 the 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 131 new antidumping and countervailing duty investigations – this is a 245 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 458 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, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.