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

Wednesday, September 18, 2013
STR Advisory

A petition filed Sept. 18 alleges that grain-oriented electrical steel from China, the Czech Republic, Germany, Japan, Korea, Poland and Russia is being dumped below cost in the U.S. market and that GOES from China is benefiting from countervailable government subsidies. Petitioners AK Steel Corporation, Allegheny Ludlum LLC and the United Steelworkers allege the following dumping margins.

Czech Republic: 57.55% - 217.23%

Poland: 47.81% - 94.84%

Russia: 18.54% - 81.78%

Korea: 40.45% - 210.13%

Japan: 38.36% - 171.25%

China: 168.47%

Germany: 49.51% - 188.59%

GOES is used primarily in the production of laminated cores for large and medium-sized electrical power transformers and distribution transformers. The scope of the petition covers flat-rolled alloy steel products containing by weight at least 0.6% of silicon, not more than 0.08% of carbon, not more than 1.0% of aluminum, and no other element in an amount that would give the steel the characteristics of another alloy steel. These products may be in coils or in straight lengths. Subject merchandise is currently classifiable under HTSUS subheadings 7225.11.0000, 7226.11.1000, 7226.11.9030 and 7226.11.9060.

The International Trade Administration and the International Trade Commission will next determine whether to launch AD/CV duty and injury investigations, respectively, on GOES from these seven 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 (2020 730-4965 or Mark Ludwikowski at (202) 730-4967.

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