U.S. Secretary of Commerce Wilbur Ross today announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether certain steel wheels from China are being dumped in the United States and if producers in China are receiving unfair subsidies.
“When a trade case is initiated it begins an open and transparent process that allows American companies, workers, and communities to gain relief from the market-distorting effects of injurious dumping and subsidization of imports,” said Secretary Ross. “The Department will act swiftly, while completing a full and fair assessment of the facts, to ensure that U.S. businesses and workers have a fair chance to compete.”
These AD and CVD investigations were initiated based on petitions filed by Accuride Corporation (Evansville, IN) and Maxion Wheels Akron LLC (Akron, OH) on March 27, 2018. The alleged dumping margins range from 12.1 – 231.7 percent. There are 56 subsidy programs alleged.
In the AD investigation, Commerce will determine whether imports of certain steel wheels from China are being dumped in the U.S. market at less than fair value.
In the CVD investigation, Commerce will determine whether Chinese producers of certain steel wheels are receiving unfair government subsidies.
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 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, U.S. imports of certain steel wheels from China were valued at an estimated $388 million.
Click HERE for a fact sheet on these initiations.
During Commerce’s investigations into whether certain steel wheels 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 May 11, 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 June 20, 2018, and preliminary AD determination scheduled for September 4, 2018, 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 from China.
Final determinations by Commerce in these cases are scheduled for September 4, 2018, for the CVD investigation, and November 19, 2018, for the AD investigation, but those dates may be extended. If Commerce finds that products are not being dumped 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 106 new antidumping and countervailing duty investigations in the first 452 days of the Trump administration. This is 66 percent more than the 64 initiations in the last 452 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 unfair pricing of imports into the United States. Commerce currently maintains 428 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 solely on factual evidence.
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.