The US Department of Commerce announced Wednesday its affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of grain-oriented electrical steel from the People’s Republic of China (China).
Commerce calculated a preliminary subsidy rate of 49.15 percent for mandatory respondent Baoshan Iron & Steel Co., Ltd. All other producers/exporters in China have been assigned a preliminary subsidy rate of 49.15 percent. As a result of the preliminary affirmative determination, Commerce will instruct US Customs and Border Protection to require cash deposits based on these preliminary rates.
The petitioners for this investigation are AK Steel Corporation (OH), Allegheny Ludlum, LLC (PA), and the United Steelworkers (PA).
The scope of this investigation covers grain-oriented silicon electrical steel (GOES). GOES is a flat-rolled alloy steel product containing by weight at least 0.6 percent but not more than 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 these investigations 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 these investigations is dispositive.
In 2013, imports of grain-oriented electrical steel from China were valued at an estimated $5.4 million.
Commerce has determined to align the final determination in the instant CVD investigation with the final determination in the companion antidumping duty investigation. Therefore, Commerce is scheduled to announce its final determination in this investigation on or about July 16, 2014, unless the statutory deadline is extended.