The Department of Commerce today placed preliminary duties on imports of carbon and certain alloy steel wire rod from the People’s Republic of China as the initial determination in its investigation of countervailing duties on the hot-rolled carbon steel and alloy products, usually used in the production of steel wire, mesh and rod products.
In 2013, imports of carbon and alloy steel wire rod from China were valued at an estimated $313 million. Commerce calculated a preliminary subsidy rate of 10.30 percent for Benxi Beiying Iron & Steel Group Import & Export Corp., Benxi Beiying Iron & Steel (Group) Co., Ltd., and 13 affiliates. Commerce calculated a preliminary subsidy rate of 81.36 percent for Hebei Iron & Steel Co. Ltd. Tangshan Branch. All other producers/exporters in China have been assigned a preliminary subsidy rate of 10.30 percent.
The petitioners for this investigation are ArcelorMittal USA LLC (Ill.), Charter Steel (Wis.), Evraz Pueblo (formerly Evraz Rocky Mountain Steel, Colo.), Gerdau Ameristeel US Inc. (Fa.), Keystone Consolidated Industries, Inc. (Texas), and Nucor Corporation (North Carolina).
Commerce determined that critical circumstances exist with respect to imports of carbon and certain alloy steel wire rod from all exporters except Benxi Steel. As a result, of the preliminary affirmative determination, Commerce will instruct US Customs and Border Protection to require cash deposits based on the above-referenced preliminary CVD rates.
The CVD law provides US business and workers with a transparent and internationally approved mechanism to seek relief from the market-distorting effects caused by subsidization of imports into the US. For the purpose of CVD investigations, countervailable subsidies are financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.