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Steel Racks from China Subject of New AD/CV Petition

Wednesday, June 20, 2018

A petition filed June 20 alleges that steel racks and parts thereof from China, whether assembled or unassembled, are being sold at less than fair value in the U.S. market and benefiting from countervailable subsidies. The alleged average dumping margins are 131.1 percent to 145.7 percent.

A steel rack is a structure typically made from cold-formed or hot-rolled steel structural members and includes components such as plates, rods, angles, shapes, sections, and tubes. Welding, bolting, and clipping are the typical methods of assembly. Connections may also be made with locking devices such as clips, end plates, and beam connectors. All steel racks and parts thereof meeting the specified physical description are covered by this petition, whether or not produced according to a particular standard.

The scope includes all steel racks and parts thereof meeting the specified description regardless of (1) dimensions, weight, strength, gauge, or load rating; (2) vertical upright or frame type (structural, roll-form, or other); (3) horizontal support or beam/brace type (e.g., structural, roll-form, slotted, unslotted, Z-beam, C-beam, L-beam, step beam, cantilever beam, and cargo rack); (4) number of supports; (5) number of levels; (6) surface coating, if any (e.g., paint, epoxy, powder coating, zinc, or other metallic coatings); (7) shape (e.g., rectangular, square, corner, and cantilever); (8) the method by which the vertical and horizontal supports connect (e.g., locking tabs or slots, bolting, clamping, and welding); and (9) the inclusion or not of moving components (e.g., rails, wheels, rollers, tracks, channels, carts, and conveyors).

Subject goods include those that have been finished, assembled, or packaged in a third country, including by coating, painting, assembling, attaching to, or packaging with another product or any other finishing, assembly, or packaging operation that would not otherwise remove the item from the scope of the petition if performed in the country of manufacture of the steel racks and parts thereof. Steel racks and parts thereof are also included in the scope whether or not imported attached to, or in conjunction with, other parts and accessories such as wire decking, nuts, and bolts.

Goods covered by this petition are currently classified under HTSUS 7326.90.8688 and 9403.20.0080 and may also enter under HTSUS 7308.90.3000, 7308.90.6000, 7308.90.9590, and 9403.20.0090.

Specifically excluded are any products covered by the existing AD and CV duty orders on boltless steel shelving units prepackaged for sale from China.

The Department of Commerce and the International Trade Commission will next determine whether to launch AD/CV duty and injury investigations, respectively, on this product. 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 contact Kristen Smith at (202) 730-4965 or David Craven at (312) 279-2844.

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