Corrosion-Resistant Steel Sheet Imports
Petitions for Antidumping and Countervailing Duties
U.S. producers of certain corrosion-resistant flat-rolled steel products, have filed antidumping and countervailing duty petitions against imports from the following ten countries:
Australia
Brazil
Canada
Mexico
The Netherlands
South Africa
Taiwan
Turkey
The United Arab Emirates
Vietnam.
The U.S. petitioners include Steel Dynamics, Inc., Nucor Corporation, United States Steel Corporation, Wheeling-Nippon Steel, Inc., and the United Steelworkers Union (AFL-CIO, CLC).
Product Uses
Corrosion-resistant steel sheets, coated with corrosion- or heat-resistant metals, are primarily used in the production of automobiles, trucks, appliances, industrial and agricultural equipment, and construction materials.
Import HTSUS Numbers
The products under investigation are currently classified under the following Harmonized Tariff Schedule of the United States (HTSUS) numbers. However, the written scope of the investigation takes precedence over these codes:
7210.30.0030, 7210.30.0060, 7210.41.0000, 7210.49.0030, 7210.49.0040, 7210.49.0045, 7210.49.0091, 7210.49.0095, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 7212.20.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7212.60.0000, 7215.90.1000, 7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060, 7217.90.5090, 7225.91.0000, 7225.92.0000, 7225.99.0090, 7226.99.0110, 7226.99.0130, 7226.99.0180, 7228.60.6000, 7228.60.8000, and 7229.90.1000.
Subject products may also have entered under the following HTSUS numbers: 7210.90.1000, 7215.90.1000, 7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060, 7217.90.5090, 7225.99.0090, 7226.99.0180, 7228.60.6000, 7228.60.8000, and 7229.90.1000.
PROPOSED SCOPE LANGUAGE
For purposes of these investigations, the products covered are certain flat-rolled steel products, either clad, plated, or coated with corrosion-resistant metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or not corrugated or painted, varnished, laminated, or coated with plastics or other non-metallic substances in addition to the metallic coating. The products covered include coils that have a width of 12.7 mm or greater, regardless of form of coil (e.g., in successively superimposed layers, spirally oscillating, etc.). The products covered also include products not in coils (e.g., in straight lengths) of a thickness less than 4.75 mm and a width that is 12.7 mm or greater and that measures at least 10 times the thickness. The products covered also include products not in coils (e.g., in straight lengths) of a thickness of 4.75 mm or more and a width exceeding 150 mm and measuring at least twice the thickness. The products described above may be rectangular, square, circular, or other shape and include products of either rectangular or non-rectangular cross-section where such cross-section is achieved subsequent to the rolling process, i.e., products which have been ‘‘worked after rolling’’ (e.g., products which have been beveled or rounded at the edges).
For purposes of the width and thickness requirements referenced above:
(1) Where the nominal and actual measurements vary, a product is within the scope if application of either the nominal or actual measurement would place it within the scope based on the definitions set forth above, and
(2) where the width and thickness vary for a specific product (e.g., the thickness of certain products with non-rectangular cross-section, the width of certain products with non-rectangular shape, etc.), the measurement at its greatest width or thickness applies.
Steel products included in the scope of these investigations are products in which: (1) iron predominates, by weight, over each of the other contained elements; and (2) the carbon content is 2 percent or less, by weight.
Subject merchandise also includes corrosion-resistant steel that has been further processed in a third country, including but not limited to annealing, tempering, painting, varnishing, trimming, cutting, punching and/or slitting or any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the country of manufacture of the in-scope corrosion resistant steel.
All products that meet the written physical description are within the scope of these investigations unless specifically excluded. The following products are outside of and/or specifically excluded from the scope of these investigations:
· Flat-rolled steel products either plated or coated with tin, lead, chromium, chromium oxides, both tin and lead (“terne plate”) or both chromium and chromium oxides (“tin free steel”), whether or not painted, varnished or coated with plastics or other non-metallic substances in addition to the metallic coating;
Clad products in straight lengths of 4.7625 mm or more in composite thickness and of a width which exceeds 150 mm and measures at least twice the thickness;
Certain clad stainless flat-rolled products, which are three-layered corrosion-resistant carbon steel flat-rolled products less than 4.75 mm in composite thickness that consist of a carbon steel flat-rolled product clad on both sides with stainless steel in a 20%-60%-20% ratio; and
Also excluded from the scope of the antidumping duty investigation on corrosion-resistant steel from Taiwan are any products covered by the existing antidumping duty order on corrosion-resistant steel from Taiwan. See Certain Corrosion-Resistant Steel Products From India, Italy, the People’s Republic of China, the Republic of Korea and Taiwan: Amended Final Affirmative Antidumping Determination for India and Taiwan, and Antidumping Duty Orders, 81 Fed. Reg. 48,390 (Dep’t Commerce July 25, 2016).
Key Considerations
The scope language is often drafted broadly and may be ambiguous. The language may also change based on developments during the investigation, such as interested party comments and arguments.
For foreign producers, exporters, and U.S. importers participating in these investigations, the duty rates often end up much lower than the alleged rates, sometimes resulting in no duties imposed at all.
ALLEGED DUMPING MARGINS AND SUBSIDIES
Dumping Margins
Australia: 45.50% - 51.35%
Brazil: 47.0% - 99.5%
Canada: 19.1% – 51.3%
Mexico: 26.67% – 41.08%
The Netherlands: 12.8% – 20.6%
South Africa: 51.96% – 52.02%
Taiwan: 67.9%
Turkey: 9.40% – 24.47%
The United Arab Emirates: 76.96% – 78.41%
Vietnam: 158.83%
Countervailable Subsidies
Brazil: Sixteen subsidy programs
Canada: Twenty-six subsidy programs
Mexico: Twenty-one subsidy programs
Vietnam: Nineteen subsidy programs
FOCUS OF THE INVESTIGATIONS
The petitions were filed with the two U.S. agencies involved in antidumping and countervailing duty investigations: the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC).
1. DOC: The Department will calculate the dumping margins and countervailable subsidy rates for foreign exporters of corrosion-resistant steel from these countries from these countries.
2. ITC: the Commission will assess whether imports from these countries are causing material injury to the U.S. U.S. corrosion-resistant steel industry.
Dumping occurs when foreign companies sell products in the United States at prices below their normal value (typically their home market price).
Countervailable subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods and are specific to the exporter, industry, or geographic region. These subsidies may be in the form of discounted loans, tax breaks, direct grants, or low-cost rent, among others.
The ITC’s injury investigation will determine whether the U.S. industry is materially injured or threatened with material injury by the allegedly dumped and subsidized imports.
Participation
The DOC is reviewing the petitions and is set to decide whether to officially launch the investigations by September 25, 2024. After the initiation, participation is critical for maintaining U.S. market share. In AD/CVD investigations, the DOC typically examines two companies from each country, usually the largest exporters to the U.S., to set the duty rates.
The ITC initiated its injury investigation on September 5, 2024, and will have 45 days to reach a preliminary determination. Companies involved can respond to ITC questionnaires and defend themselves against injury claims. The questionnaires are due by September 19, 2024.
Retroactive duties may be imposed for merchandise currently in transit or expected to be shipped soon. The additional duties normally become effective when the DOC makes affirmative preliminary determinations. However, if the petitioners later allege critical circumstances and dumping or subsidization is determined, imports arriving up to 90 days before the DOC’s preliminary determination could face retroactive cash deposits.
Key Dates:
DOC Initiation: September 25, 2024
ITC Preliminary Determination: October 21, 2024
DOC CVD Preliminary Determinations: November 29, 2024
DOC AD Preliminary Determinations: February 12, 2025
DOC CVD Final Determinations: February 12, 2025
DOC AD Final Determinations: April 28, 2025
ITC Final CVD Determination: March 31, 2025
ITC Final AD Determination: June 12, 2025
Note: The above deadlines are estimates and might be extended under certain circumstances.