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U.S. Department Of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Carbon and Alloy Steel Threaded Rod from China, India, Taiwan, and Thailand

FOR IMMEDIATE RELEASE

Today, the U.S. Department of Commerce announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine if carbon and alloy steel threaded rod from China, India, Taiwan, and Thailand is being sold in the United States at less than fair value, while also finding whether producers of carbon and alloy steel threaded rod in China and India are receiving unfair subsidies.

These antidumping and countervailing duty investigations were initiated based on petitions filed by Vulcan Threaded Products Inc. (Pelham, AL) on February 21, 2019.

The alleged dumping margins are:

    China – 57.36 to 59.45 percent
    India – 25.43 to 28.34 percent
    Taiwan – 32.26 percent
    Thailand – 20.83 percent

There are 21 subsidy programs alleged for China, including policy loans, export buyer’s credits, and the provision of electricity for less than adequate remuneration. Additionally, there are 52 subsidy programs alleged for India, including duty drawback, loan guarantees, and a duty free import authorization scheme.

If Commerce makes an affirmative finding in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of carbon and alloy steel threaded rod from China, India, 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 2018, imports of carbon and alloy steel threaded rod from China, India, Taiwan, and Thailand were valued at an estimated $104.7 million, $35.8 million, $51.1 million, and $5.8 million, respectively.

Click HERE for a fact sheet on these initiations.

Next Steps:

During Commerce’s investigations into whether carbon and alloy steel threaded rod from China, India, Taiwan, and Thailand is 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 April 8, 2019. If the ITC preliminarily finds that there is injury or threat of injury, then Commerce’s investigations will continue, with the preliminary CVD determinations scheduled for May 17, 2019, and preliminary AD determinations scheduled for July 31, 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 carbon and alloy steel threaded rod from China, India, Taiwan, and Thailand.

Final determinations by Commerce in these cases are scheduled for July 31, 2019, for the CVD investigations, and October 15, 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 that 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 155 new antidumping and countervailing duty investigations – this is a 278 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 471 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 law 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.