For Immediate Release
April 17, 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 non-refillable steel cylinders from China are being sold in the United States at less than fair value, and to determine if producers in China are receiving unfair subsidies.
The petitions were filed by Worthington Industries (Columbus, Ohio). The petitioner estimated that imports of non-refillable steel cylinders from China were valued at $21.5 million in 2019.
In the AD investigation, Commerce will determine whether imports of non-refillable steel cylinders from China are being dumped in the U.S. market at less than fair value. The alleged dumping margin is 53.76 percent.
In the CVD investigation, Commerce will determine whether producers of non-refillable steel cylinders in China are receiving unfair government subsidies. There are 21 alleged subsidy programs, including tax programs, export subsidy programs, grant programs, loan programs, and various programs to provide goods 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 non-refillable steel cylinders 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.
During Commerce’s AD and CVD investigations of non-refillable steel cylinders from China, the ITC will conduct its own investigations into whether these imports cause or threaten to cause material injury to the U.S. industry. The ITC will make its preliminary determinations on or before May 11. 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 June 22, and the preliminary AD determination scheduled for September 3, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, it will instruct U.S. Customs and Border Protection to begin collecting cash deposits from all U.S. companies importing non-refillable steel cylinders from China, as appropriate.
Final determinations by Commerce in these cases are scheduled for September 8, for the CVD investigation, and November 17, for the AD investigation, although these deadlines may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds no injury or threat of 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 230 new AD and CVD investigations – a 203 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 523 AD and CVD 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 their production of goods, 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.