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Practice Areas

Scope of AD Duty Orders on Chinese Steel Could be Expanded

Thursday, November 10, 2016
Sandler, Travis & Rosenberg Trade Report

The International Trade Administration has initiated separate reviews to determine whether the antidumping and countervailing duty orders on cold-rolled steel flat products (CRS) and corrosion-resistant steel products (CORE) from China are being circumvented. Affirmative determinations in either of these proceedings could have a significantly negative impact on the automotive, appliance, construction, and other industry sectors that rely on these products.

The ITA is investigating:

- whether imports of CORE produced in Vietnam using carbon hot-rolled steel and cold-rolled steel flat products manufactured in China are circumventing the AD and CV duty orders on CORE from China; and

- whether imports of CRS produced in Vietnam from hot-rolled steel produced in China are circumventing the AD and CV duty orders on CRS from China.

Domestic producers are requesting that the ITA treat imports from Vietnam as subject goods under the scope of these orders and impose AD/CV cash deposit requirements. The ITA states that if its preliminary determinations are affirmative it will instruct U.S. Customs and Border Protection to suspend liquidation and require AD/CV cash deposits at the applicable rates for each unliquidated entry of subject goods that is entered or withdrawn from warehouse for consumption on or after the date the inquiries were initiated.

These reviews are part of a comprehensive effort by the U.S. government to improve the enforcement of U.S. trade laws. Other recent major developments on this front include the enactment of the Enforce and Protect Act as part of the Trade Facilitation and Trade Enforcement Act and the issuance of an interim rule that establishes the formal process that CBP will use to investigate AD/CV evasion claims.

ST&R has developed an evasion monitoring tool designed to assist importers in responding to these heightened AD/CV enforcement activities. To file comments with the ITA in these anti-circumvention inquiries or to learn more about ST&R’s evasion monitoring tool, contact Kristen Smith at (202) 730-4965, Mark Ludwikowski at (202) 730-4967, or David Craven at (312) 279-2844.

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