Domestic Companies Ask for AD/CV Duties on Grain-Oriented Electrical Steel from Seven Countries
Two domestic steel companies and a labor union filed requests on Sept. 18 for new antidumping duties on grain oriented electrical steel (GOES) from China, the Czech Republic, Germany, Japan, South Korea, Poland, and Russia. AK Steel Corporation, Allegheny Ludlum, and the United Steelworkers also requested the Commerce Department and International Trade Commission impose countervailing duties on GOES from China. According to the petitioners, underselling by exporters in the seven countries are causing U.S. companies a loss of domestic market share and falling sales and profits.
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GOES is a flat-rolled steel product that is subject to a special rolling and annealing process that yields grain structures uniformly oriented in lengthwise direction of the sheet. It is mainly used in the production of laminated cores for electrical power transformers. Its directional magnetic properties allow for transformation of power from high to low voltages.
If Commerce and the ITC decide to impose AD/CV duties on GOES, it would not be the first instance of additional duties on the product. GOES from Italy and Japan were subject to AD and CV duties between 1994 and eventual revocation in 2006. Meanwhile, China imposed AD/CV duties on GOES from the U.S. in 2009. The Chinese duties were later subject to a World Trade Organization dispute, and China lowered the duties in August to comply with an adverse WTO ruling (see 13081322). Both AK Steel and Allegheny Ludlum are subject to the Chinese duties.
Proposed Scope
The petition proposed that Commerce Department and the ITC define the scope of their investigations as follows:
“Grain-oriented silicon electrical steel (‘GOES’) is a flat-rolled alloy steel product containing by weight at least 0.6 percent of silicon, not more than 0.08 percent of carbon, not more than 1.0 percent of aluminum, and no other element in an amount that would give the steel the characteristics of another alloy steel, in coils or in straight lengths. The GOES that is subject to this investigation is currently classifiable under subheadings 7225.11.0000, 7226.11.1000, 7226.11.9030, and 7226.11.9060 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.”
The petitioners said the proposed scope is “very similar” to the scope of the former AD/CV duty orders on GOES from Italy and Japan.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping duty investigations on GOES from China, the Czech Republic, Germany, Japan, South Korea, Poland, and Russia, and a countervailing duty investigation on GOES from China. The petitioners say they meet petition support requirements because they are the only domestic producer of MSG. Comments are due by about Oct. 8.
Email ITTNews@warren-news.com for a copy of the petition.