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U.S. Department of Commerce Initiates Antidumping Duty Investigations of Imports of Refillable Stainless Steel Kegs From China, Germany, and Mexico, and Countervailing Duty Investigation of Imports of Refillable Stainless Steel Kegs from China

FOR IMMEDIATE RELEASE

The U.S. Department of Commerce announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether refillable stainless steel kegs from China, Germany, and Mexico are being dumped in the United States and to determine if producers in China are receiving unfair subsidies. The alleged dumping margins are 204.42 percent for China, 72.80 percent for Germany, and 18.48 percent for Mexico. In addition, there are 26 Chinese subsidy programs alleged, including policy lending, export loans, income tax deductions and exemptions, as well as grants for energy conservation and international market expansion, among others.

These antidumping and countervailing duty investigations were initiated based on petitions filed by American Keg Company, LLC (Pottstown, PA) on September 20, 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 refillable stainless steel kegs from China, Germany and Mexico 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 refillable stainless steel kegs from China, Germany, and Mexico were valued at an estimated $18.1 million, $11.8 million, and $5.7 million, respectively. 

Click HERE for a fact sheet on these initiations.

Next Steps:

During Commerce’s investigations into whether refillable stainless steel kegs from China, Germany, and Mexico 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 14, 2018, and preliminary AD determinations scheduled for February 27, 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 refillable stainless steel kegs from China, Germany, and Mexico.

Final determinations by Commerce in these cases are scheduled for February 27, 2019 for the countervailing investigation, and May 13, 2019 for the antidumping investigations, but those deadlines 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 129 new antidumping and countervailing duty investigations – this is a 239 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.