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Electrical Steel from Six Countries Hit with Allegations of Dumping and Subsidization

Monday, September 30, 2013
STR Advisory

A petition filed Sept. 30 alleges that non-oriented electrical steel from China, Germany, Japan, Korea, Sweden and Taiwan is being dumped below cost in the U.S. market and that NOES from China, Korea and Taiwan is benefiting from countervailable government subsidies. Petitioner AK Steel Corporation alleges the following dumping margins.

Taiwan: 51.37% - 105.93%

Korea: 6.12% - 70.59%

Japan: 88.33% - 221.43%

Germany: 70.055% - 87.04%

China: 238.41% - 397.47%

Sweden: 61.75%

NOES is typically used in the production of large and small motors, generators, lighting ballasts and ignition coils. The scope of the petition covers cold-rolled, flat-rolled, alloy steel products, whether or not in coils, regardless of width, having a thickness of 0.20 mm or more, in which the core loss is substantially equal in any direction of magnetization in the plane of the material.  These products may be subject whether fully processed or semi-processed, coated or not coated, in coils or in straight lengths. Subject merchandise is currently classifiable under HTSUS subheadings 7225.19.0000,7226.19.1000 and 7226.19.9000 and may also be entered under subheadings 7225.50.8085, 7225.99.0090, 7226.92.5000, 7226.92.7050, 7226.92.8050 and 7226.99.0180.

The International Trade Administration and the International Trade Commission will next determine whether to launch AD/CV duty and injury investigations, respectively, on NOES from these six countries. There are strict statutory deadlines associated with these proceedings so affected companies that wish to protect their interests should contact trade counsel as soon as possible.

For more information, please contact Kristen Smith at (202) 730-4965 or Mark Ludwikowski at (202) 730-4967.

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