Categorized | Trade

US Expands Chinese Plate Duty Evasion Scope

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The following article appeared in the Daily Media Report of the American Iron and Steel Institute on 2/17/11.

US producers are one step closer to winning an antidumping duty circumvention case against discrete plate imports from China.

Last year, US mills including Nucor, SSAB North America, Evraz Claymont, Evraz Oregon and ArcelorMittal USA asked the US Department of Commerce (DOC) to investigate the alleged circumvention of carbon plate import duties by Chinese producer Wuyang Iron and Steel and trading company Stemcor. The DOC this week preliminarily determined that the companies have sold plate in the US with insignificant amounts of boron added to avoid paying import duties.

The DOC is taking it a step further, however, by deciding to apply the AD order to all Chinese producers making boron additions, Steel Business Briefing understands.

The American Iron and Steel Institute (AISI) called the DOC’s preliminary decision “a clear victory for US plate producers.” In 2009, Commerce found that Tianjin Iron and Steel and Toyota Tsusho America were illegally evading duties in this manner.

“We are pleased to hear that the Commerce Department has taken action on what is one of the oldest tricks on the book, trying to slightly modify the chemistry of a product to evade antidumping orders,” AISI president Thomas Gibson said in a statement.

Unless Chinese producers can verify that boron was added to their plate to meet required specifications, the DOC will collect cash deposits on all Chinese boron-added plate, AISI says. The DOC will issue its final decision later this year.

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