Today, the Department of Commerce placed countervailing duties on imports of carbon and alloy steel cut-to-length plate from China and cleared South Korea simultaneously.
For the purpose of countervailing duties investigations, a countervailable subsidy is financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods.
In the China investigation, Commerce calculated preliminary subsidy rates of 210.50% for mandatory respondents Jiangyin Xingcheng Special Steel Works Co. Ltd., Hunan Valin Xiangtan Iron & Steel, and Viewer Development Co., Ltd. based on the application of adverse facts available. All other producers/exporters in China have also been assigned a preliminary subsidy rate of 210.50%.
In the Korea investigation, Commerce calculated a de minimis preliminary subsidy rate of 0.62% for mandatory respondent POSCO. All other producers/exporters in Korea have been assigned a de minimis preliminary subsidy rate.
As a result of the preliminary affirmative determination for China, Commerce will instruct U.S. Customs and Border Protection (CBP) to require cash deposits based on these preliminary rates. For Korea, because its preliminary determination was negative, Commerce will not instruct CBP to require cash deposit rates.
The petitioners are Arcelormittal USA LLC, Nucor Corporation and SSAB Enterprises, LLC. Commerce is scheduled to announce its final determinations on or about January 19, 2017, unless the statutory deadline is extended.