Coated Steel Coil Countervailing Duty (CVD) in USA

On November 3, 2015, Coated Steel Coil Countervailing Duty (CVD) Result was initially announced for imports from China, India, Italy, Korea, Taiwan.

• The CVD law provides U.S. business and workers with a transparent and internationally accepted mechanism to seek relief from the market distorting effects caused by injurious subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.

• For the purpose of CVD investigations, countervailable subsidies are financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.

• In the China investigation, Commerce preliminarily determined that mandatory respondent Yieh Phui (China) Technomaterial Co., Ltd. received a subsidy rate of 26.26 percent. Mandatory respondents Angang Group Hong Kong Company Ltd., Baoshan Iron & Steel Co., Ltd., Duferco S.A. (and its cross-owned companies Hebei Iron & Steel Group, and Tangshan Iron and Steel Group Co., Ltd.), Changshu Everbright Material Technology, and Handan Iron & Steel Group either notified Commerce that they would not participate in this investigation or did not participate in the investigation. As a result, these companies received a subsidy rate of 235.66 percent based on adverse facts available following Commerce’s preliminary determination that the companies had not cooperated in the investigation. All other producers/exporters in China have been assigned a preliminary subsidy rate of 26.26 percent.

• In the India investigation, Commerce preliminarily determined that mandatory respondents JSW Steel Limited received a subsidy rate of 2.85. Respondent Uttam Galva Steels Limited preliminarily
received a subsidy rate of 7.71 percent. All other producers/exporters in India have been assigned a preliminary subsidy rate of 5.28 percent.

• In the Italy investigation, Commerce preliminarily determined that mandatory respondents Acciaieria Arvedi S.p.A. and Marcegaglia S.p.A. received subsidy rates of 0.38 percent and 0.04 percent, respectively, which are de minimis. Respondent Ilva S.p.A., which did not participate in this investigation, received a subsidy rate of 38.41 percent based on adverse facts available following Commerce’s preliminary determination that the company had not cooperated in the investigation. All other producers/exporters in Italy have been assigned a preliminary subsidy rate of 13.06 percent.

• In the Korea investigation, Commerce preliminarily determined that mandatory respondents Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co., Ltd. (Dongbu) received a subsidy rate of 1.37 percent and Union Steel Manufacturing Co. Ltd./Dongkuk Steel Mill Co., Ltd. (Union/Dongkuk) received a U.S. Department of Commerce | International Trade Administration subsidy rate 0.69 percent, which is de minimis. All other producers/exporters in Korea have been assigned a preliminary subsidy rate of 1.37 percent.

• In the Taiwan investigation, Commerce preliminarily determined that mandatory respondents Prosperity Tieh Enterprise Co., Ltd. (PT); Hong-Ye Steel Co., Ltd. (HY); Prosperity Did Enterprise Co., Ltd. (PD); and Chan Lin Enterprise Co., Ltd. (CL) (collectively Prosperity Companies) and Yieh Phui Enterprise Co., Ltd. (Yieh Phui); Yieh Corporation Limited (YCL); Shin Yang Steel Co., Ltd. (Shin Yang); and Synn Industrial Co., Ltd (Synn) (collectivelyYieh Phui Companies) received subsidy rates of 0.00 percent, which is de minimis. Because the preliminary determination is negative, no “all others” rate has been applied to any other producers/exporters in Taiwan.

• As a result of the preliminary affirmative determinations, Commerce will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary subsidy rates.

• Commerce preliminary found that critical circumstances exist with respect to certain exporters from China, Italy, Korea, and Taiwan. Where critical circumstances were found with respect to China,
Italy, and Korea, CBP will be instructed to impose provisional measures retroactively on entries of corrosion-resistant steel from those exporters, up to 90 days prior to publication of the respective
preliminary determination Federal Register notice. No critical circumstances were found with respect to exports of corrosion-resistant steel from India. Because of Commerce’s preliminary
negative determination with respect to Taiwan, retroactive provisional measures will not be applied.

• The petitioners for these investigations are United States Steel Corporation (PA), Nucor Corporation (NC), ArcelorMittal USA (IL), AK Steel Corporation (OH), Steel Dynamics, Inc. (IN), and California Steel Industries, Inc. (CA).

• The products covered by these investigations are certain flat-rolled steel products, either clad, plated, or coated with corrosion-resistant metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or
iron-based alloys, whether or not corrugated or painted, varnished, laminated, or coated with plastics or other non-metallic substances in addition to the metallic coating. The products covered include
coils that have a width of 12.7 mm or greater, regardless of form of coil (e.g., in successively superimposed layers, spirally oscillating, etc.). The products covered also include products not in coils (e.g., in straight lengths) of a thickness less than 4.75 mm and a width that is 12.7 mm or greater and that measures at least 10 times the thickness. The products covered also include products not in coils (e.g., in straight lengths) of a thickness of 4.75 mm or more and a width exceeding 150 mm and measuring at least twice the thickness. The products described above may be rectangular, square, circular, or other shape and include products of either rectangular or non-rectangular cross-section where such cross-section is achieved subsequent to the rolling process, i.e., products which have been “worked after rolling” (e.g., products which have been beveled or rounded at the edges). For purposes of the width and thickness requirements referenced above:
(1) where the nominal and actual measurements vary, a product is within the scope if application of either the nominal or actual measurement would place it within the scope based on the definitions set forth above, and U.S. Department of Commerce | International Trade Administration

(2) where the width and thickness vary for a specific product (e.g., the thickness of certain products with non-rectangular cross-section, the width of certain products with non-rectangular shape, etc.), the measurement at its greatest width or thickness applies.

Steel products included in the scope of these investigations are products in which:

(1) iron predominates, by weight, over each of the other contained elements;

(2) the carbon content is 2 percent or less, by weight;

(3) none of the elements listed below exceeds the quantity, by weight, respectively indicated:
• 2.50 percent of manganese, or
• 3.30 percent of silicon, or
• 1.50 percent of copper, or
• 1.50 percent of aluminum, or
• 1.25 percent of chromium, or
• 0.30 percent of cobalt, or
• 0.40 percent of lead, or
• 2.00 percent of nickel, or
• 0.30 percent of tungsten (also called wolfram), or
• 0.80 percent of molybdenum, or
• 0.10 percent of niobium (also called columbium), or
• 0.30 percent of vanadium, or
• 0.30 percent of zirconium

Unless specifically excluded, products are included in this scope regardless of levels of boron and titanium.

• In 2014, imports of corrosion-resistant steel products from China, India, Italy, Korea, and Taiwan were valued at an estimated $685 million, $379.5 million, $99.1 million, $416.7 million, and $577.5 million, respectively, for a total of $2.2 billion.

NEXT STEPS

• Commerce is scheduled to announce its final determination on or about January 19, 2016; unless the statutory deadline is extended.

• If Commerce makes affirmative final determinations, and the U.S. International Trade Commission (ITC) makes affirmative final determinations that imports of China, India, Italy, Korea, and/or
Taiwan materially injure, or threaten material injury to, the domestic industry, Commerce will issue CVD orders. If either Commerce’s or the ITC’s final determinations are negative, no CVD orders will be issued. The ITC is scheduled to make its final injury determinations in March 2015.

PRELIMINARY SUBSIDY RATES – CVD RATES:

China
Yieh Phui (China) Technomaterial Co., Ltd.  26.26%
Angang Group Hong Kong Company Ltd.  235.66%
Baoshan Iron & Steel Co., Ltd.  235.66%
Duferco S.A., Hebei Iron & Steel Group, and Tangshan Iron
and Steel Group Co., Ltd.  235.66%
Changshu Everbright Material Technology  235.66%
Handan Iron & Steel Group  235.66%
All Others  26.26%

 

India
JSW Steel Limited 2.85%
Uttam Galva Steels Limited  7.71%
All Others  5.28%

 

Italy
Acciaieria Arvedi S.p.A. 0.38%
Marcegaglia S.p.A. 0.04%
Ilva S.p.A.  38.41%
All Others  13.06%

 

Korea
Union Steel Manufacturing Co. Ltd./Dongkuk Steel Mill Co., Ltd. 0.69%
Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co., Ltd.  1.37%
All Others  1.37%

 

Taiwan
All Mills 0%

It’s not yet over as there is still pending Antidumping Rate applied for Coated Steel Coil from China, India, Korea, Italy, Taiwan. Bearing in mind that there are 2 barriers for US importers to import Coated Steel Coil: CVD rate and Antidumping rate.

CLICK HERE TO KNOW THE SOLUTION FOR U.S. IMPORTERS TO IMPORT COATED STEEL COIL