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U.S. investigations of fabricated structural steel from Canada, China, Mexico

Fabricated structural steel from Canada, China, Mexico

The U.S. Commerce Department announced new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether fabricated structural steel imported from Canada, China, and Mexico is being sold in the United States at less than fair value and to find if producers in Canada, China, and Mexico are receiving unfair subsidies.

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In the AD investigation, Commerce will determine whether imports of fabricated structural steel from Canada, China, and Mexico are being dumped in the U.S. market at less than fair value. The alleged dumping margins are 30.41% for Canada, 222.35% for China, and 30.58% for Mexico.

In the CVD investigation, Commerce will determine whether Canadian, Chinese, and Mexican producers of fabricated structural steel are receiving unfair government subsidies.

  • There are 44 subsidy programs alleged for Canada, including tax programs, grant programs, loan programs, export insurance programs, and equity programs.
  • There are 26 subsidy programs alleged for China, including tax programs, grant programs, debt restructuring programs, export subsidy programs, as well as the provision of goods and services for less than adequate remuneration.
  • There are 19 subsidy programs alleged for Mexico, including grant programs, tax programs, export programs, and loan programs.

If Commerce makes an affirmative finding in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of fabricated structural steel from Canada, China, and Mexico, are causing 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.
 

Read a Commerce Department fact sheet [PDF 82 KB] on these initiations.
 

During Commerce’s investigations as to whether fabricated structural steel from Canada, China, and Mexico is being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before March 21, 2019.

  • If the ITC preliminarily determines that there is injury or threat of injury, then Commerce’s investigations will continue, with the preliminary CVD determinations scheduled for May 1, 2019, and preliminary AD determinations scheduled for July 15, 2019, 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 fabricated structural steel from Canada, China, and Mexico.

Final determinations by Commerce in these cases are scheduled for July 15, 2019, for the CVD investigations, and September 30, 2019, for the AD investigations, but those dates may be extended.

If Commerce finds that products are not being dumped and/or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.

 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117
E: rwaldrop@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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