U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Corrosion Inhibitors from China
For Immediate Release
February 26, 2020
Contact: Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether corrosion inhibitors from China are being dumped in the United States, and to determine if producers in China are receiving countervailable subsidies.
These AD and CVD investigations were initiated based on petitions filed by Wincom, Incorporated (Blue Ash, Ohio).
In the AD investigation, Commerce will determine whether imports of corrosion inhibitors are being dumped in the U.S. market at less than fair value. The alleged dumping margins range from 384.97 percent to 420.32 percent.
In the CVD investigation, Commerce will determine whether Chinese producers of corrosion inhibitors are receiving unfair government subsidies. Petitioners have alleged that producers and exporters from China are receiving benefits from 19 subsidy programs, including preferential lending and export financing, grants, income tax reductions, tariff exemptions, and the provision of land and inputs for less than adequate remuneration.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of corrosion inhibitors from China materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2019, imports of corrosion inhibitors from China were valued at an estimated $16.3 million in 2019.
During Commerce’s investigations into whether corrosion inhibitors from China are being dumped and/or unfairly subsidized, the ITC will conduct its own investigation into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determination on or before March 23. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for April 30, and preliminary AD determination scheduled for July 14, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or countervailable subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing corrosion inhibitors from China.
Final determinations by Commerce in these cases are currently scheduled for July 14, for the CVD investigation, and September 28, for the AD investigation, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 203 new AD and CVD investigations – this is a 174 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 516 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from those 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, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.