US steel wire manufacturers report evidence of antidumping duty evasion schemes

Evidence that certain companies are deliberately evading the antidumping duties to which they are subject will be presented to members of Congress, the US Department of Commerce, and US Customs and Border Protection by a coalition of US manufacturers of steel wire products.

The Coalition for Enforcement of Antidumping and Countervailing Duty Orders accuse certain foreign manufacturers of such evasive schemes as falsely designating a third country as the country of origin for shipments, modifying products in third countries to avoid duties, or displaying false country of origin labels on products.

According to the coalition, the alleged schemes are costing the US Treasury at least $84 million annually and are the cause of over 275 job losses in the innerspring and hanger industries alone. The coalition, which also includes manufacturers of steel nails, steel wire garment hangers, and carbon steel threaded rod, seek stronger enforcement of existing antidumping orders to maintain a level playing field in the market. Each of these industries separately petitioned the US Government for relief from unfairly traded imports, and after two years of proceedings, established that foreign companies were selling products in the US at less than fair value. Such sales were proven to be materially injurious to the US manufacturers, and consequently the Department of Commerce issued antidumping duty orders, levying up to 234 percent on some imports to remedy the situation.

“These schemes are blatant and purposeful,” said David Libla, President of Mid Continent Nail and a coalition member. “Not only are they clear evidence of attempts to maintain an unfair advantage in the marketplace, they’re also costing taxpayers millions of dollars and reducing job opportunities in this country. We appreciate the efforts of both Congress and the Executive Branch to consider this information and determine how best to enforce these existing orders.”

The Coalition for Enforcement of Antidumping and Countervailing Duty Orders consists of the following companies: M&B Metal Products (Leeds, Alabama), Vulcan Threaded Products (Pelham, Alabama), Leggett & Platt, Incorporated (Carthage, Missouri), Mid Continent Nail (Poplar Bluff, Missouri), American Spring Wire Company (Bedford Heights, Ohio) and Insteel Industries (Mt. Airy, North Carolina).