WASHINGTON, July 12, 2016 /PRNewswire/ -- Today, the
U.S. Department of Commerce announced its preliminary determination
that imports of stainless steel sheet and strip ("SSSS") from
China are benefitting from unfair
government subsidies. As a result, it will instruct U.S.
Customs and Border Protection ("CBP") to begin to require U.S.
importers of SSSS from China to
deposit estimated countervailing duties at the time of
importation. Further, based on its previously announced
preliminary affirmative critical circumstances determination, the
Commerce Department will instruct CBP to suspend liquidation of all
entries of SSSS from China that
were imported into the United
States on or after the date that is 90 days prior the date
of publication in the Federal Register of the affirmative
preliminary countervailing duty determination, and to require U.S.
importers to post security equal to the preliminary subsidy rates
on those entries.
The Commerce Department's determination follows the filing, on
February 12, 2016, of antidumping and
countervailing duty petitions by domestic producers AK Steel
Corporation (NYSE: AKS), Allegheny Ludlum, LLC d/b/a ATI Flat
Rolled Products, an Allegheny Technologies company (NYSE: ATI),
North American Stainless, and Outokumpu Stainless USA, LLC.
Based on information gathered to date, the Commerce Department
calculated a preliminary subsidy margin of 57.30 percent of the
value of the imported SSSS for Shanxi Taigang Stainless Steel Co.,
Ltd., the sole Chinese respondent that was analyzed by the
agency. The Commerce Department assigned a preliminary
subsidy margin of 193.12 percent to shipments of SSSS by all other
producers and exporters in China,
including Ningbo Baoxin Stainless Steel Co., Ltd. and Daming
International Import Export Co., Ltd., both of which failed to
participate in the Commerce Department's investigation after being
selected as a mandatory respondents. The Commerce Department
investigated numerous subsidy programs based on allegations
contained in the domestic industry's petition.
John M. Herrmann, of Kelley, Drye
& Warren LLP, counsel to the domestic industry, stated, "We are
very pleased with the Commerce Department's affirmative preliminary
determination that the Government of China provides unfair subsidies to its
domestic producers of stainless steel sheet and strip. The
requirement that U.S. importers begin to post estimated
countervailing duties on shipments of stainless steel sheet and
strip from China will help to
eliminate unfair trade and restore a level playing field in the
U.S. market."
The next step in this trade action will be the Commerce
Department's issuance of its final countervailing duty
determination, which is likely to be completed on or about
January 30, 2017. In addition,
the Commerce Department is currently scheduled to issue its
preliminary antidumping determination on Monday, September 12, 2016. If an
affirmative preliminary antidumping determination is issued by the
Commerce Department, U.S. importers will be required to post cash
deposits or bonds on all future entries of SSSS from China in the amount of the subsidy and dumping
margin calculated by the agency.
Imports of stainless steel sheet and strip from China increased by 133 percent between 2013
and 2015. China was the
largest supplier of stainless sheet and strip to the U.S. market in
2015, accounting for almost half of all imports. This surge
in imports of stainless steel sheet and strip from China was driven by low import pricing that
caused U.S. producers to lose significant sales and profits.
Stainless steel sheet and strip is a flat-rolled alloy steel
containing, by weight, 1.2 percent or less of carbon and 10.5
percent or more of chromium, with or without other elements.
Stainless steel sheet and strip is used in consumer and industrial
applications where the corrosion resistance, heat resistance, or
design characteristics of stainless steel are required.
The petitioners are represented in these actions by Kathleen W. Cannon, David A. Hartquist, John
M. Herrmann, and Grace W. Kim
of the law firm Kelley Drye & Warren LLP.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/us-stainless-steel-sheet-and-strip-industry-encouraged-by-commerce-departments-affirmative-preliminary-determination-in-china-subsidy-investigation-300297542.html
SOURCE Kelley Drye & Warren
LLP