US continues duty investigations regarding varied products

In detail

Background

According to the US Customs and Border Protection (CBP) website, “antidumping and countervailing duties are intended to offset the value of dumping and/or subsidization, thereby leveling the playing field for domestic industries injured by such unfairly traded imports.”

The ITA explains that “dumping occurs when a foreign producer sells a product in the United States at a price that is below that producer’s sales price in the country of origin (‘home market’), or at a price that is lower than the cost of production. The difference between the price (or cost) in the foreign market and the price in the U.S. market is called the dumping margin. Unless the conduct falls within the legal definition of dumping as specified in U.S. law, a foreign producer selling imports at prices below those of American products is not necessarily dumping.”

Further, according to the ITA, “Foreign governments subsidize industries when they provide financial assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, credits against taxes, and loans at terms that do not reflect market conditions. The statute and regulations establish standards for determining when an unfair subsidy has been conferred. The amount of subsidies the foreign producer receives from the government is the basis for the subsidy rate by which the subsidy is offset, or “countervailed,” through higher import duties.”

To initiate an AD or CVD investigation, the domestic industry simultaneously files a petition with Commerce and the International Trade Commission (ITC). Commerce reviews the petition for sufficiency and if it determines that the petition contains the relevant information, it will initiate an investigation into whether the goods subject to the petition are being sold at less than fair value (LFTV) or are benefiting from unfair subsidization. Once an investigation has been initiated, Commerce investigates whether a producer or exporter is dumping and/or receiving unfair subsidies, while the ITC investigates whether the domestic industry is injured or there is a threat of injury because of the potentially dumped or subsidized imports.

Boltless steel shelving units prepackaged for sale

Like the tin mill products discussed in the previous Insight, these products fall within the category of steel-related commodities. On May 16, 2023, based on petitions filed by a US manufacturer on April 25, Commerce announced the initiation on May 15 of AD investigations of boltless steel shelving units prepackaged for sale from India, Malaysia, Taiwan, Thailand, and Vietnam. The (ITC on May 2 announced that its investigation began on April 25. The period of investigation (POI) for the Vietnam (a nonmarket economy or NME) investigation is October 1, 2022-March 31, 2023, and is April 1, 2022-March 31, 2023, for the other four cases. 

On June 14, 2023, the ITC issued a preliminary determination that “there is a reasonable indication that an industry in the United States is materially injured by reason of imports of boltless steel shelving units prepackaged for sale (‘boltless steel shelving’) from Malaysia, Taiwan, Thailand, and Vietnam, and that there is a reasonable indication that an industry in the United States is threatened with material injury by reason of imports of boltless steel shelving from India, provided for in subheading 9403.20.00 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value (‘LTFV’).” The full injury investigation report is available on the ITC’s website.

Preliminary Commerce determinations in all five cases are due October 2, 2023. 

Pea protein

Pea protein is an increasingly popular nutritional supplement as a source of lean protein and fiber. On August 2, 2023, Commerce announced the initiation of AD and CVD investigations of high-protein-content (HPC) pea protein from China. Petitions were filed in these cases by a US producer of pea protein on July 12, 2023, and the investigations were opened on August 1. The ITC’s preliminary determinations were due August 28. Commerce’s preliminary CVD determination is due on October 5 and its preliminary AD determination on December 19. The POI for these cases is January 1, 2022-December 31, 2022. The preliminary injury investigation report (ITC Publication 5457) is not yet available on the ITC’s website.

Gas-powered pressure washers

Gas-powered pressure washers, which fall under the commodity category of machinery and automotive, are the subject of three current investigations: AD investigations regarding imports from China and Vietnam (both NMEs), and a CVD investigation regarding China. The investigations cover both finished and unfinished gas-powered pressure washers. 

Petitions in these cases were filed by US manufacturers on December 22, 2022, and the investigations were initiated on January 19, 2023, covering POIs of April 1, 2022-September 30, 2022 for the AD investigations and January 1, 2021-December 31, 2021 for the CVD investigation.

Commerce issued its final affirmative LTFV  determination in the Vietnam investigation on August 29, 2023. The ITC’s final determination is due on October 6, 2023. If the ITC issues an affirmative final determination, Commerce will issue an antidumping duty order covering 

Regarding the China investigations, Commerce issued its preliminary affirmative LTFV  determination on August 3, 2023, and its preliminary affirmative countervailable subsidies determination on June 5, 2023. Final determinations in both cases are due on December 18, 2023, following a request from the petitioner that Commerce align the final CVD determination in this investigation with the final determination in the companion AD investigation. The full preliminary injury investigation report is available on the ITC’s website.

Paper shopping bags

Based on petitions filed by US manufacturers on May 31, 2023, nine AD investigations regarding imports of paper shopping bags were initiated on June 20, 2023, as well as CVD investigations regarding imports from China and India. The scope language suggests that subject “paper shopping bags typically are made of kraft paper but can be made from any type of cellulose fiber, paperboard, or pressboard with a basis weight less than 300 grams per square meter (GSM).” 

The POIs for the seven AD investigations regarding market economies are April 1, 2022-March 31, 2023, and for the two regarding NMEs (China and Vietnam) are October 1, 2022-March 31, 2023. The POI for both CVD investigations are January 1, 2022-December 31, 2022.

The ITC issued preliminary affirmative determinations in all nine investigations on July 17, 2023. Commerce’s preliminary determinations are due on November 7 in the AD cases and October 30 in the CVD cases. The full preliminary injury investigation reports are available on the ITC’s website.

Orders and suspension agreements

As noted above, 670 orders and eight suspension agreements are in place. Of these, 232 relate to imports from China, while the remainder range in number from one order (Singapore) to 44 orders (South Korea). The products covered include foodstuffs such as honey and fresh garlic; products made from steel and other metals; various paper products; textiles; and chemicals.

The current suspension agreements cover the following imports:

·        Lemon juice from Argentina (AD investigation)

·        White grape juice concentrate from Argentina (AD and CVD investigations)

·        Fresh tomatoes from Mexico (AD investigation)

·        Sugar from Mexico (AD and CVD investigations)

·        Uranium from Russia (AD investigation)

·        Cut-to-length carbon steel plate from Ukraine (AD investigation).