The US Wire Rod Producers Coalition announced Friday that it has filed a petition alleging that certain Mexican producers of carbon and alloy steel wire rod are circumventing an antidumping duty order on wire rod from Mexico, requesting that the United States Department of Commerce (Commerce) take immediate corrective action.
The petition alleges that two Mexican mills, Deacero S.A. de C.V. and Ternium Mexico S.A. de C.V., are responsible for a surge in imported wire rod in gauges below the nominal diameter of the wire rod covered by the antidumping duty order in an effort to evade antidumping during in excess of 17 percent. If Commerce agrees with the domestic industry, it could order the suspension of liquidation and the application of cash deposit as early as 45 days after the date of filing of the petition.
The US Wire Rod Producers Coalition charges that Mexican mills are engaging in a minor alteration of wire rod that is otherwise within the scope of the order by hot-rolling it to a slightly thinner gauge as the in-scope products and selling it to the same customers for the same end-uses. In addition, the domestic industry argues that the lighter gauge wire rod being shipped by the Mexican mills should be found to be within the scope of the order because it falls within the industry diameter tolerances for wire rod within the scope of the antidumping duty order. Scope and anti-circumvention provisions of US law permit Commerce to include the lighter gauge Mexican wire rod within the scope of the antidumping duty order on wire rod from Mexico on either ground.
Members of the Wire Rod Producers Coalition pursuing this action are ArcelorMittal USA LLC, Gerdau Ameristeel US Inc., and Rocky Mountain Steel a division of Evraz, Inc. NA. They are represented in this scope/circumvention investigation by Paul C. Rosenthal and R. Alan Luberda, partners in the International Trade and Customs Practice at Kelley Drye & Warren, LLP.