China Dumping Prestressed Concrete Steel Wire Strand

China’s Dumping of Prestressed Concrete Steel Wire Strand Confirmed

Nation2Nation N2N | May 18, 2010 | Comments 0

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• On May 17, the Department of Commerce (Commerce) announced its affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations on imports of prestressed concrete steel wire strand (PC Strand) from the People’s Republic of China (China).

• Dumping occurs when a foreign company sells a product in the United States at less than fair value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

• In the AD case Commerce determined that Chinese producers/exporters have sold PC Strand in the United States at 42.97-193.55 percent.

• The mandatory respondent, Xinhua Metal Products Co., Ltd. (Xinhua Metal), received a final dumping rate of 175.94 percent. The voluntary respondent, Wuxi Jinyang Metal Products Co. (WJMP), received a final dumping rate of 42.97 percent. Also, in this investigation, Fasten Group Import & Export (Fasten Group I&E) has qualified for a separate rate of 175.94 percent. All other Chinese producers/exporters will receive a final dumping rate of 193.55 percent.

• In the CVD case, Commerce determined that Chinese producers/exporters of PC Strand have received net countervailable subsidies ranging from 8.85-45.85 percent.

• Mandatory respondents, Fasten Group Import & Export Co., Ltd. and Xinhua Metal Products Co., (Xinhau) received final subsidy rates of 8.85 percent and 45.85 percent, respectively. All other producers/exporters received a subsidy rate of 27.35 percent.

• As a result of these determinations, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposit or bond based on these final rates, adjusted for export subsidies found in the final determination of the companion CVD investigation. Fasten Group I&E, received an export subsidy rate of .09 percent; Xinhua Metal received an export subsidy of .20 percent; and all other exporters received an export subsidy of .055 percent. Accordingly, Commerce will instruct CBP to collect an antidumping duty cash deposit or bonding rate of 175.85 percent for Fasten I&E; 175.74 percent for Xinhua Metal; and 42.42.percent for WJMP.

• The petitioners for these investigations are American Spring Wire Corp. (OH), Insteel Wire Products Company (NC), and Sumiden Wire Products Corp. (TN).

• The merchandise covered by this investigation consists of certain prestressed concrete steel wire strand which is a collection of wire rod bars, typically covered with an epoxy material and is primarily used in concrete construction applications.

• Prestressed concrete steel wire strand are currently classifiable under the subheadings 7312.10.3010 and 7312.10.3012 of the Harmonized Tariff Schedule of the United States (HTSUS). While the HTSUS subheading is provided for convenience and customs purposes, Commerce’s written description governs the scope of the investigation.

• In 2009, imports of PC Strand from China were valued at an estimated $13 million.

NEXT STEPS

• The U.S. International Trade Commission (ITC) is currently scheduled to issue its final injury determination on or before June 28, 2010.

• If the ITC makes an affirmative final determination that imports of PC Strand from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD and CVD orders.

Source = International Trade Administration

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