On Tuesday, the US Department of Commerce ruled in the affirmative in its final determinations in the countervailing duty (CVD) and antidumping duty (AD) investigations of imports of galvanized steel wire from China (AD and CVD) and Mexico (AD). The DOC determined that producers/exporters from China and Mexico have sold galvanized wire in the US at margins ranging from 194 to 235 percent, and 20.89 to 37.69 percent, respectively. Chinese producers/exporters have received countervailable subsidies ranging from 19.06 to 223.27 percent.
In the China AD investigation, mandatory respondents Tianjin Honbase Machinery Manufactory Co., Ltd.; and Shanghai Bao Zhang Industry Co., Ltd., Anhui Bao Zhang Metal Products Co., Ltd., and B&Z Galvanized Wire Industry (Baozhang) received the China-wide rate of 235 percent as adverse facts available (AFA) because both companies refused to participate in mandatory verifications. Mandatory respondent Tianjin Huayuan Metal Wire Products Co., Ltd. received the China-wide rate of 235 percent, because it did not receive a separate rate. Finally, because there were Chinese exporters that did not respond to Commerce's request for information, the DOC assigned the AFA rate of 235 percent to the PRC-wide entity.
Sixteen exporters qualified for a separate dumping rate of 194 percent. All other Chinese exporters received a dumping rate of 235 percent.
In the Mexico AD investigation, Deacero S.A. de C.V. received a final dumping rate of 20.89 percent and Aceros Camesa, S.A. de C.V. received a final dumping rate of 37.69 percent. All other Mexican exporters received a final dumping rate of 22.43 percent.
In the China CVD investigation, mandatory respondent Shanghai Bao Zhang Industry Co., Ltd and its cross-owned affiliated companies (collectively, the Bao Zhang Companies) received a final subsidy rate of 19.06 percent. Additionally, the US DOC assigned three mandatory respondents: M&M Industries Co. Ltd, Shandong Hualing Hardware and Tool Co., Ltd., and the Huayuan Companies, a subsidy rate based, based on AFA, of 223.27 percent, for failing to cooperate in the investigation. All other Chinese producers/exporters received a final subsidy rate of 19.06 percent.
The petitioners for these investigations are: California-based Davis Wire Corporation; Pennsylvania-based Johnstown Wire Technologies, Inc.; Tennessee-based Mid-South Wire Company, Inc.; Michigan-based National Standard, LLC; and Oklahoma-based Oklahoma Steel & Wire Company, Inc.
The galvanized steel wire covered in this case fall under the Harmonized Tariff Schedule of the United States (HTSUS) under: 7217.20.30, 7217.20.45, and 7217.90.10. Steel wire is reported under statistical reporting numbers: 7217.20.3000, 7217.20.4510, 7217.20.4520, 7217.20.4530, 7217.20.4540, 7217.20.4550, 7217.20.4560, 7217.20.4570, 7217.20.4580, and 7217.90.1000. These products may also enter under HTSUS subheadings: 7229.20.0015, 7229.20.0090, 7229.90.5008, 7229.90.5016, 7229.90.5031, and 7229.90.5051.
The ITC is currently scheduled to issue its final injury determination on or before May 3, 2012. If the ITC makes affirmative final determinations that imports of galvanized wire from China and/or Mexico materially injure, or threaten material injury to, the domestic industry, the DOC will issue CVD and AD orders.