Steel Wire Rod: Commerce Issues CV Duty Final Determinations for Italy and Turkey
The Commerce Department issued its final determinations in the countervailing duty investigations on carbon and alloy steel wire rod from Italy (C-475-837) and Turkey (C-489-832). Suspension of liquidation is currently not in effect for entries on or after Jan. 3, 2018, and Commerce will only require cash deposits of estimated CV duties on future entries if it issues a CV duty order.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Before Commerce issues any CV duty orders, the International Trade Commission must find injury to U.S. industry in its final injury determinations, currently due May 3. In the event of an ITC final determination of no injury for any of these investigations, that investigation will be terminated with no duties imposed, and all cash deposits collected as a result of the investigation will be refunded.
Commerce also issued a final determination in its concurrent AD duty investigations on steel wire rod from Italy and Turkey, as well as South Korea, Spain and the United Kingdom (see 1803270014). Liquidation of subject merchandise is currently suspended as a result of those investigations. Commerce has already issued AD duty orders on steel wire rod from Belarus, Russia, South Africa, Ukraine and the United Arab Emirates (see 1801230028 and 1803130013).
Critical Circumstances, Retroactive Suspension of Liquidation for Habas
Commerce made a new finding that the Turkish exporter Habas increased its exports to the U.S. in the months before the preliminary determination, in an attempt to get in as much product as possible before the imposition of cash deposit requirements. This "critical circumstances" finding by the agency allows it to retroactively suspend liquidation and require CV duty cash deposits for subject merchandise from Habas to 90 days before the preliminary determination, i.e., June 7.
Commerce also continued to find "critical circumstances" for all other Turkish companies (i.e., all except Icdas), and will direct CBP to continue to suspend liquidation for these companies for entries on or after June 7, 2017. Otherwise, CV duty suspension of liquidation and cash deposit requirements for all Italian exporters take effect on Sept. 5, 2017.
CV Susp/Cash Deposit Through Jan. 2
Commerce has instructed CBP to continue the suspension of liquidation of entries (except for entries from the Turkish company Icdas, which received a zero rate in the preliminary determination) from Sept. 5, 2017, the date of its preliminary determinations in these investigations (or June 7 for Habas and the Turkish "all others" companies), through Jan. 2, 2018.
CV Liq Reinstated and No CV Cash Deposit as of Jan. 3
Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after Jan. 3, the expiration date of the 120-day "provisional measures" period during which Commerce can suspend liquidation after the preliminary determination but without a CV duty order in place.
Suspension of liquidation remains in effect for AD duty purposes.
CV Liq to Be Suspended Again and CV Cash Deposit Required If Order Issued
Commerce will issue CV duty orders, reinstate CV duty suspension of liquidation, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues final affirmative injury determinations.
Italy
| Company | CV Rate | Sus Liq |
|---|---|---|
| Ferriere Nord S.p.A. (also includes FIN FER S.p.A.; Acciaierie di Verona S.p.A.; and SIAT S.p.A.) | 4.16% (from 1.7%) | 09/05/17 |
| Ferriera Valsider S.p.A | 44.18% (unchanged) | 09/05/17 |
| All Others | 4.16% (from 1.7%) | 09/05/17 |
Turkey
| Company | CV Rate | Sus Liq |
|---|---|---|
| Habas Sinai Ve Tibbi Gazlar Istih | 3.86% (from 2.27%) | 06/07/17 |
| Icdas Celik Eberji Tersane Ve Ulasim San | 3.81% (from zero) | N/A* |
| All Others | 3.84% (from 2.27%) | 06/07/17 |
*Though Commerce has suspended liquidation upon finding dumping or illegal subsidization for a company for the first time in a final determination, the agency's notice does not say it will instruct CBP to suspend liquidation for entries from Icdas issued on or after March 28.
(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the "gap period" of Jan. 3 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/16 - 12/31/16. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 1709010017 for a summary of the preliminary determination of this investigation.)
(Federal Register 03/28/18)