Three New AD/CVD Petitions: Metal Cabinets, Metal Cylinders, Brass Rod

Final week noticed a flurry of exercise with three new AD/CVD petitions:

(1) Boltless Metal Shelving Models from India, Malaysia, Taiwan, Thailand, and Vietnam (AD solely);

(2) Brass Rod from Brazil, India, Israel, Mexico, South Africa, and South Korea (AD/CVD); and

(3) Non-Refillable Cylinders from India (AD/CVD)

Two of those petitions are sequels of AD/CVD circumstances on the identical product from China that occurred a number of years in the past. AD/CVD orders have been imposed on boltless metal shelving from China in October 2015. Non-refillable cylinders from China was hit with AD/CVD orders in Could 2021. After these Chinese language merchandise had prohibitively excessive AD/CVD duties imposed, U.S. consumers nonetheless have been unable or unwilling to purchase from the home producers and as a substitute appeared to search out various import sources. The petitioners now search yet one more spherical of protecting duties in opposition to the elevated import volumes from these new international locations that changed the Chinese language provide.

The third case, brass rod, has not been topic to a earlier AD/CVD investigation. However one of many petitioners in that case, Mueller Brass Co., is a part of the Mueller group that could be a long-time person of US commerce legal guidelines. Mueller efficiently received AD duties imposed on imports of seamless copper pipes and tubes, first from China and Mexico in November 2010 and Vietnam in August 2021. The helpful impression from the AD orders on copper pipes and tubes most likely influenced the choice to hunt AD/CVD duties on this new case on brass rod.

The U.S. Division of Commerce (“DOC”) and U.S. Worldwide Commerce Fee (“ITC”) will conduct investigations to additional study the allegations made within the petition. DOC will examine whether or not the named topic imports are being offered to america at lower than truthful worth (“dumping”) or profit from unfair authorities subsidies. ITC will examine whether or not the topic imports are inflicting “materials damage” or “risk of fabric damage” to the home business.

Firms in these industries – importers, distributors, purchasers–are most likely already acquainted from the prior circumstances with the disruptive impression that AD/CVD investigations can have. This new spherical of circumstances principally contain market economic system international locations (aside from Vietnam), which is a big distinction from the prior circumstances in opposition to China, which is taken into account a non-market economic system. DOC calculates AD margins in market economic system circumstances utilizing the corporate’s precise prices. In distinction, DOC in non-market economic system circumstances in opposition to China (and Vietnam) is not going to use the corporate’s precise prices, however as a substitute will use a surrogate worth methodology that tends to inflate the AD margins, typically fairly considerably. If the overseas producers and exporters in these circumstances can efficiently navigate their method by means of the DOC antidumping course of, their AD margins will hopefully be decrease than the AD margins imposed on these merchandise from China.

As firms outdoors China step up their efforts to cut back or get rid of China from their provide chains, we should always anticipate the variety of AD/CVD investigations of exports from outdoors China to extend, based mostly merely on the numbers.

Beneath are the petition summaries:

Boltless Metal Shelving Models from India, Malaysia, Taiwan, Thailand, and Vietnam

On April 25, 2023, Edsal Manufacturing Co., Inc. filed antidumping (AD) petitions in opposition to boltless metal shelving models pre-packaged on the market from India, Malaysia, Taiwan, Thailand, and Vietnam.

Scope

The proposed scope definition of this case  is similar because the scope of the AD/CVD orders on boltless metal shelving prepackaged on the market from China. The boltless metal shelving lined by this investigation could also be generally described as rivet shelving, welded body shelving, slot and tab shelving and punched rivet (quasi-rivet) shelving in addition to by different commerce names.

See the total scope definition right here for extra particular definitions of “boltless”, “decks”, “prepackaged on the market” and “add-on kits” which are related to figuring out what merchandise are lined by this AD investigation.

Alleged AD/CVD Margins.

Petitioner calculated estimated dumping margins for the named international locations:

India- 215.77%.

Malaysia: 41.29% – 232.94%

Taiwan: 217.66%

Thailand: 177.72% – 188.06%

Vietnam: 85.24% – 205.49%

Named Exporters/ Producers

Petitioner included a listing of firms it believes are producers and exporters of the topic merchandise. See connected checklist right here.

Named U.S. Importers

Petitioner included a listing of firms that it believes are U.S. importers of the topic merchandise. See connected checklist right here.

Estimated Schedule of Investigations.

April 25, 2023 – Petitions filed

Could 15, 2023 – DOC initiates investigation

Could 16, 2023 – ITC Employees Convention

June 9, 2023 – ITC preliminary willpower

November 21, 2023 – DOC AD preliminary willpower (assuming prolonged deadline) (10/2/23 – unextended)

April 4, 2024 – DOC ultimate willpower (prolonged)

Could 19, 2024 – ITC ultimate willpower (prolonged)

Could 26, 2024 – DOC AD/CVD orders issued (prolonged)

Non-Refillable Cylinders from India

On April 27, 2023, Worthington Industries filed antidumping (AD) and countervailing obligation (CVD) petitions in opposition to Non-Refillable Cylinders from India.

Scope

The proposed scope definition (see right here) defines the topic merchandise as “sure seamed (welded or brazed), non-refillable metal cylinders assembly the necessities of, or produced to fulfill the necessities of, US Division of Transportation specification 39, Transport Canada specification 39M, or United Nations strain receptacle normal ISO 11118 and in any other case assembly the outline offered under (“non-refillable metal cylinders”).

The requested scope of this investigation differs from the prior investigation on non-refillable metal cylinders from China with regard to capability. This proposed scope covers non-refillable metal cylinders that “vary from 100-cubic inch (1.6 liter) water capability to 1,526-cubic inch (25 liter) water capability,” which is a modification of the prior scope masking non-refillable metal cylinders with a lower-end water capability of 300 cubic inches. (4.9 liters).

Particularly excluded are seamless non-refillable metal cylinders.

The merchandise topic to those orders is correctly categorized beneath statistical reporting numbers 7311.00.0060 and 7311.00.0090 of the Harmonized Tariff Schedule of america (HTSUS). These are basket classes that comprise non-subject merchandise as properly. The merchandise can also enter beneath HTSUS statistical reporting numbers 7310.29.0030 and 7310.29.0065. Though the HTSUS statistical reporting numbers are offered for comfort and customs functions, the written description of the merchandise is dispositive.

Alleged AD/CVD Margins.

Petitioner calculated estimated dumping margins of 11.20 – 56.52%.

Named Exporters/ Producers

Petitioner included a listing of firms that it believes are producers and exporters of the topic merchandise.  See connected checklist of exporters right here.

Named U.S. Importers

Petitioner included a listing of firms that it believes are U.S. importers of the topic merchandise.  See connected checklist of importers right here.

Estimated Schedule of Investigations.

April 27, 2023 – Petitions filed

Could 17, 2023 – DOC initiates investigation

Could 18, 2023 – ITC Employees Convention

June 12, 2023 – ITC preliminary willpower

September 24, 2023 – DOC CVD preliminary willpower (assuming prolonged deadline) (7/21/23 – unextended)

November 23, 2023 – DOC AD preliminary willpower (assuming prolonged deadline) (10/4/23 – unextended)

April 6, 2024 – DOC ultimate willpower (prolonged and AD/CVD aligned)

Could 21, 2024 – ITC ultimate willpower (prolonged)

Could 28, 2024 – DOC AD/CVD orders issued (prolonged)

Brass Rod from Brazil, India, Israel, Mexico, South Africa, and South Korea

On April 27, 2023, the American Brass Rod Honest Commerce Coalition, consisting of Mueller Brass Co., based mostly in Port Huron, Michigan and Wieland Chase LLC, based mostly in Montpelier, Ohio filed antidumping (AD) and countervailing obligation (CVD) petitions looking for the imposition of antidumping (AD) duties on imports of brass rods from six international locations, Brazil, India, Israel, Mexico, South Africa, and South Korea.  The petitions additionally search the imposition of countervailing (CVD) duties on imports from India, Israel and South Korea.

Scope

The proposed scope definition defines the merchandise lined by these petitions as brass rod, which is outlined as “leaded, low-lead, and no-lead strong brass produced from sure alloys”. See right here for full proposed scope definition.

Alleged AD/CVD Margins.

Petitioner calculated estimated dumping margins for the title international locations:

Brazil: 62.62%

India: 10.20%

Israel: 20.00%

Mexico: 63.76%

South Africa: 27.99%

South Korea: 12.75%

The petitions didn’t determine any particular subsidy charges for India, Israel or South Korea.

Named Exporters/ Producers

Petitioner included a listing of firms that it believes are producers and exporters of the topic merchandise. See connected checklist right here.

Named U.S. Importers

Petitioner included a listing of firms that it believes are U.S. importers of the topic merchandise. See connected checklist right here.

Estimated Schedule of Investigations.

April 27, 2023 – Petitions filed

Could 17, 2023 – DOC initiates investigation

Could 18, 2023 – ITC Employees Convention

June 12, 2023 – ITC preliminary willpower

September 24, 2023 – DOC CVD preliminary willpower (assuming prolonged deadline) (7/21/23 – unextended)

November 23, 2023 – DOC AD preliminary willpower (assuming prolonged deadline) (10/4/23 – unextended)

April 6, 2024 – DOC ultimate willpower (prolonged and AD/CVD aligned)

Could 21, 2024 – ITC ultimate willpower (prolonged)

Could 28, 2024 – DOC AD/CVD orders issued (prolonged)