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 instances on the identical product from China that occurred just a few 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 Might 2021. After these Chinese language merchandise had prohibitively excessive AD/CVD duties imposed, U.S. patrons nonetheless have been unable or unwilling to purchase from the home producers and as a substitute regarded to search out various import sources. The petitioners now search 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 may be a long-time person of US commerce legal guidelines. Mueller efficiently obtained 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 influence from the AD orders on copper pipes and tubes in all probability 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 the US at lower than honest worth (“dumping”) or profit from unfair authorities subsidies. ITC will examine whether or not the topic imports are inflicting “materials damage” or “menace of fabric damage” to the home trade.

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

As corporations exterior China step up their efforts to cut back or remove China from their provide chains, we should always anticipate the variety of AD/CVD investigations of exports from exterior China to extend, primarily based merely on the numbers.

Under 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 identical because the scope of the AD/CVD orders on boltless metal shelving prepackaged on the market from China. The boltless metal shelving coated 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 coated 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 an inventory of corporations it believes are producers and exporters of the topic merchandise. See hooked up checklist right here.

Named U.S. Importers

Petitioner included an inventory of corporations that it believes are U.S. importers of the topic merchandise. See hooked up checklist right here.

Estimated Schedule of Investigations.

April 25, 2023 – Petitions filed

Might 15, 2023 – DOC initiates investigation

Might 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)

Might 19, 2024 – ITC ultimate willpower (prolonged)

Might 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 stress receptacle customary ISO 11118 and in any other case assembly the outline offered beneath (“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 protecting 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 the US (HTSUS). These are basket classes that include non-subject merchandise as nicely. 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 an inventory of corporations that it believes are producers and exporters of the topic merchandise.  See hooked up checklist of exporters right here.

Named U.S. Importers

Petitioner included an inventory of corporations that it believes are U.S. importers of the topic merchandise.  See hooked up checklist of importers right here.

Estimated Schedule of Investigations.

April 27, 2023 – Petitions filed

Might 17, 2023 – DOC initiates investigation

Might 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)

Might 21, 2024 – ITC ultimate willpower (prolonged)

Might 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., primarily based in Port Huron, Michigan and Wieland Chase LLC, primarily based in Montpelier, Ohio filed antidumping (AD) and countervailing obligation (CVD) petitions searching 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 coated by these petitions as brass rod, which is outlined as “leaded, low-lead, and no-lead stable brass made out of 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 an inventory of corporations that it believes are producers and exporters of the topic merchandise. See hooked up checklist right here.

Named U.S. Importers

Petitioner included an inventory of corporations that it believes are U.S. importers of the topic merchandise. See hooked up checklist right here.

Estimated Schedule of Investigations.

April 27, 2023 – Petitions filed

Might 17, 2023 – DOC initiates investigation

Might 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)

Might 21, 2024 – ITC ultimate willpower (prolonged)

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