U.S. Department of Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Prestressed Concrete Steel Wire Strand from 15 Countries
FOR IMMEDIATE RELEASE
May 7, 2020
Contact: Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of antidumping (AD) and countervailing duty (CVD) investigations to determine whether prestressed concrete steel wire strand (PC strand) from Argentina, Colombia, Egypt, Indonesia, Italy, Malaysia, the Netherlands, Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, Turkey, Ukraine, and the United Arab Emirates are being dumped in the United States, and to determine if producers in Turkey are receiving unfair subsidies.
The petitions were filed by Insteel Wire Products Company (Mount Airy, N.C.), Sumiden Wire Products Corporation (Dickson, Tenn.), and Wire Mesh Corporation (Houston).
This is the second-largest set of petitions filed simultaneously for a single product since 2001. The largest, for common alloy aluminum sheet, was submitted to Commerce in March.
In the AD investigations, Commerce will determine whether imports of PC strand from these 15 countries are being dumped in the U.S. market at less than fair value. The alleged dumping margins are as follows:
- 60.40 percent for Argentina
- 86.09 percent for Colombia
- 29.72 percent for Egypt
- 72.28 percent for Indonesia
- 30.61 percent for Italy
- 39.57 percent for Malaysia
- 30.86 percent for the Netherlands
- 194.40 percent for Saudi Arabia
- 155.10 percent for South Africa
- 38.57 percent for Spain
- 23.89 percent for Taiwan
- 53.11 percent for Tunisia
- 53.65 percent for Turkey
- 17.70 and 53.83 percent for Ukraine
- 170.65 percent for the United Arab Emirates
In the CVD investigation from Turkey, Commerce will determine whether Turkish producers of PC strand are receiving unfair government subsidies. Commerce will investigate 21 subsidy programs, including tax programs, government provision of goods for less than adequate remuneration, import substitution subsidies, grants, and government provided loans.
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 PC strand from these 15 countries 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.
The 2019, imports of PC strand from the countries under investigation were approximately valued as follows:
- $2.3 million for Argentina
- $9.6 million for Colombia
- $345.9 thousand for Egypt
- $5.4 million for Indonesia
- $10.2 million for Italy
- $26.1 million for Malaysia
- $1.6 million for the Netherlands
- $1.4 million for Saudi Arabia
- $6.7 million for South Africa
- $15.6 million for Spain
- $3.0 million for Taiwan
- $9.9 million for Tunisia
- $13.1 million for Turkey
- $986.5 thousand for Ukraine
- $2.3 million for the United Arab Emirates
During Commerce’s investigations into whether PC strand from these 15 countries are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations by June 1. If the USITC preliminarily determines that there is reasonable and indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for July 10, and preliminary AD determinations scheduled for September 23, unless these deadlines are extended.
If Commerce preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing PC strand from these 15 countries, as appropriate.
Final determinations by Commerce in these cases are scheduled for September 23, for the CVD investigation, and December 7, for the AD investigations, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the USITC finds in a final determination 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 254 new AD and CVD investigations – this is a 234 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 525 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 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.