Steel Threaded Rod Anti-dumping and Countervailing Duty Investigation
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NOTE: Due to the 16-day federal government shutdown, key decision dates in the investigation may be delayed.
(1) Dumping / Anti-dumping Duties
The anti-dumping law provides U.S. businesses and workers with a transparent and internationally approved mechanism to seek relief from the market-distorting effects caused by injurious dumping of imports into the United States, providing an opportunity for U.S. producers to compete on a level playing field. For the purpose of antidumping investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value.
(2) Subsidization / Countervailing Duties
Countervailing duty law provides U.S. businesses and workers with a transparent and internationally approved mechanism to seek relief from the market distorting effects caused by unfair subsidization of imports into the United States, providing an opportunity for U.S. producers to compete on a level playing field.
For the purpose of countervailing investigations, countervailable subsidies are financial and other assistance from foreign governments that benefit foreign producers of goods for export.iling investigations, countervailable subsidies are financial and other assistance from foreign governments that benefit foreign producers of goods for export.
(3) History of Threaded Rod Imports (See chart below)
(4) Petition Filed – 6/27/3013
Petitions for anti-dumping duties and countervailing duties were filed on June 27, 2013 with the U.S. International Trade Commission and the U.S. Commerce Department by the U.S. steel threaded rod manufacturing industry represented by All America Threaded Products, Inc. of Denver, Colorado; Bay Standard Manufacturing, Inc. of Brentwood, California; and Vulcan Threaded Products, Inc. of Pelham, Alabama.
(5) The Products – Subject of the Petitions
Non-headed, low-carbon steel threaded rod, bar or studs of any length or diameter; either plain, zinc plated or hot dip galvanized; and threaded greater than 25% of total length (for a full description of the products covered by the investigation, please see Federal Register Document 2013–17794, Appendix “Scope of the Investigations”).
(6) Timeline
NOTE: Due to the 16-day federal government shutdown, key decision dates in the investigation may be delayed.
July 18, 2013 – Hearings
The U.S. International Trade Commission held hearings in Washington, DC on July 18, 2013 in response to the petitions filed on June 27, 2013 for the purpose of making a preliminary determination as to whether the U.S. threaded rod manufacturing industry had been injured by threaded rod imports from India and Thailand.
August 9, 2013 – Preliminary determination by U.S. International Trade Commission
(ITC) On August 9, 2013, the U.S. International Trade Commission (ITC) voted 6 to 0 that there is a reasonable indication that the U.S. threaded rod manufacturing industry is materially injured by reason of imports of certain steel threaded rod from India and Thailand.
*Note that all six Commissioners voted in the affirmative.
September 20, 2013 – Preliminary determination by U.S. Department of Commerce
Preliminary determination by U.S. Department of Commerce (DOC) as to countervailing duties: no earlier than September 20, 2013; no later than November 25, 2013.
December 2013 – Preliminary determination by U.S. Department of Commerce
Preliminary determination by DOC as to anti-dumping duties: no earlier than December 4, 2013; no later than January 23, 2014.
February 7, 2014/June 9, 2014 – Final determination by U.S. Department of Commerce – Countervailing
Final determination by U.S. Department of Commerce as to countervailing duties: no earlier than February 7, 2014; no later than June 9, 2014.
April 8, 2014/June 9, 2014 – Final determination by U.S. Department of Commerce – Anti-dumping
Final determination by U.S. Department of Commerce as to anti-dumping duties: no earlier than April 8, 2014; no later than June 9, 2014.
March 24, 2014/July 22, 2014 – Final determination by the U.S. International Trade Commission – Countervailing
Final determination by the U.S. International Trade Commission as to countervailing duty investigation: no earlier than March 24, 2014; no later than July 22, 2014.
May 23, 2014/July 22, 2014 – Final determination by the U.S. International Trade Commission – Anti-dumping
Final determination by the U.S. International Trade Commission as to anti-dumping investigation: no earlier than May 23, 2014; no later than July 22, 2014.
(7) Preliminary Estimate of Anti-Dumping Duties:
Country | Dumping Duties | Countervailing Duties |
India | 17.93% to 119.87% | Foreign government subsidies and resultant countervailing duties are not estimated in advance by either the International Trade Commission or the Department of Commerce |
Thailand | 63.16% to 74.90% |
(8) Critical Circumstances
In the event that there is a surge of low carbon threaded rod imports into the United States of 15% or more from the date that the Anti-dumping/Countervailing Duty Petitions were filed on June 27, 2013, the USITC/DOC could declare a finding of “critical circumstances,” in which case countervailing duties would be applied to such threaded rod imports retroactively to August 26, 2013; and anti-dumping duties would be applied retroactively to October 25, 2013.
(9) Why Not Malaysia?
You will note from paragraph #3 above, “History of U.S. Threaded Rod Imports,” that imports from Malaysia have grown from 703,000 pounds in 2008 (before duties were imposed on China), to 3,997,000 pounds in 2012 — a 468% increase. In order to file a valid anti-dumping or countervailing duty petition against a country, that country must be a producer of the products being petitioned. Malaysia produces no product subject to the petitions. They are only “exporters” of such product, which means that the product is produced elsewhere and “transshipped” through Malaysia to the United States. There is reason to believe that a large percentage, if not all, of these transshipments originate in China in contravention of U.S. trade laws —- as both anti-dumping and countervailing duties have been imposed on China in respect to the subject products. U.S. Customs is charged with the responsibility of enforcing U.S. trade laws and collecting duties. U.S. Customs is well aware of the allegations that China, in an effort to avoid duties, is transshipping through Malaysia in contravention of the law. Should U.S. Customs choose to investigate these claims and find them to be true, U.S. Customs can and should impose retroactive duties, financial penalties, and even jail terms —- as they have recently done in the case of wire hangers from China and honey from China.
(9) What About China?
Note also that China’s exports to the U.S. of the subject products have also risen substantially since the duties were imposed — 13,277,000 pounds in 2009 to 19,510,000 pounds in 2012, an increase of 46.9%. What is going on here? There is reason to believe that the importers of the subject product from China are simply misrepresenting on their customs declarations what they are shipping to the U.S. as not being dutiable. Again, it is up to U.S. Customs to enforce U.S. trade laws and collect the appropriate duties. U.S. Customs is likewise well aware of allegations that China is cheating in the manner above and U.S. Customs remedies are the same as with Malaysia, wire hangers and honey.
ADDITIONAL RESOURCES U.S. Department of Commerce (DOC)
Fact Sheet
Anti-dumping Duty Investigations of Steel Threaded Rod from India and Thailand and a Countervaling Duty Investigation of Steel Threaded Rod from India.
Federal Register
ITC Notice
Steel Threaded Rod from India and Thailand: Initiation of Anti-dumping Duty Investigation.