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China Stainless Steel Sinks: New AD/CV Investigations Deadlines & Scope

The International Trade Administration issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on drawn stainless steel sinks from China (A-570-983 and C-570-984, respectively). The ITA will determine whether imports of stainless steel sinks from China are being, or are likely to be, sold in the U.S. at less than fair value, and whether manufacturers, producers, or exporters of stainless steel sinks from China receive countervailable subsidies.

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The AD period of investigation is July 1, 2011, through December 31, 2011. The CV period of investigation is January 1, 2011, through December 31, 2011.

Alleged AD/CV Margins

An ITA fact sheet says the alleged dumping margins for stainless steel sinks from China are 22.81%-76.53%. The alleged CV margin is above de minimis (i.e., above 1% or 2%, depending on the country's stage of development).

AD Respondent Selection

For the AD investigation, the ITA will request quantity and value information from all known exporters and producers identified with complete contact information in the petition. The quantity and value data received from these Chinese exporters/producers will be used as the basis to select the mandatory respondents. Responses to the Q&V questionnaire are due no later than April 11, 2012.

Exporters and producers of stainless steel sinks that do not receive Q&V questionnaires from the ITA but intend to submit a response can obtain a copy here.

CV Respondent Selection

For the CV investigation, the ITA expects to select respondents based on U.S. Customs and Border Protection (CBP) data for U.S. imports during the period of investigation. Interested parties may submit comments regarding the CBP data and respondent selection within seven calendar days of the publication of the ITA's initiation notice (on or about April 3, 2012). The ITA intends to make its decision regarding respondent selection within 20 days of March 27, 2012 (on or about April 16, 2012).

AD Separate Rate Applications

For AD investigations involving non-market economy (NME) countries such as China, the ITA requires that respondents submit a response to both the Q&V questionnaire and the separate rate application by the respective deadlines in order to receive consideration for separate rate status. The ITA will calculate combination rates for certain respondents that are eligible for a separate rate in this investigation.

Separate-rate status applications are due by about May 26, 2012. The separate rate application for China is available here.

Targeted Dumping Allegations

Any interested party that wishes to make a targeted dumping allegation in the AD investigation may submit allegations no later than 45 days before August 8, 2012 (the scheduled date of the ITA’s preliminary determination)1.

Scope of the AD/CV Investigations

The products covered by the scope of these investigations are stainless steel sinks with single or multiple drawn bowls, with or without drain boards, whether finished or unfinished, regardless of type of finish, gauge, or grade of stainless steel (“Drawn Stainless Steel Sinks”). Mounting clips, fasteners, seals, and sound-deadening pads are also covered by the scope of these investigations if they are included within the sales price of the Drawn Stainless Steel Sinks.

For purposes of this scope definition, the term “drawn” refers to a manufacturing process using metal forming technology to produce a smooth basin with seamless, smooth, and rounded corners. Drawn Stainless Steel Sinks are available in various shapes and configurations and may be described in a number of ways including flush mount, top mount, or undermount (to indicate the attachment relative to the countertop). Stainless steel sinks with multiple drawn bowls that are joined through a welding operation to form one unit are covered by the scope of the investigations.

Drawn Stainless Steel Sinks are covered by the scope of the investigations whether or not they are sold in conjunction with non-subject accessories such as faucets (whether attached or unattached), strainers, strainer sets, rinsing baskets, bottom grids, or other accessories.

Excluded from the scope of the investigations are stainless steel sinks with fabricated bowls. Fabricated bowls do not have seamless corners, but rather are made by notching and bending the stainless steel, and then welding and finishing the vertical corners to form the bowls. Stainless steel sinks with fabricated bowls may sometimes be referred to as “zero radius” or “near zero radius” sinks.

The products covered by these investigations are currently classified in the Harmonized Tariff Schedule (HTS) under statistical reporting number 7324.10.0000. Although the HTS subheading is provided for convenience and customs purposes, the written description of the products under investigation is dispositive of its inclusion as subject merchandise.

Comments on Scope Due by Feb 7

The ITA notes that it discussed the scope with petitioners to ensure that it is an accurate reflection of the products for which the domestic industry is seeking relief. The ITA invites comments on the scope by April 10, 2012.

Investigations Timetable

EventAD InvestigationCV Investigation
Petition filed03/01/1203/01/12
ITA initiation date03/21/1203/21/12
ITC prelim determination204/16/1204/16/12
ITA prelim determination308/08/1205/25/12
ITA final determination310/22/1208/08/12
ITC final determination412/06/1209/24/12
Issuance of order512/13/1210/1/12

1In December 2008, the ITA issued an interim final rule for the purposes of withdrawing the regulations governing targeted dumping analysis in AD duty investigations. ITA states that this change allows it to exercise the discretion intended by statute, and thereby develop a practice that will allow interested parties to pursue all statutory avenues of relief in this area. (See ITT's Online Archives 08121525 and 09011535 for summaries of the interim final rule and extension of the comment period.)

2If the ITC makes a negative determination of injury, the investigations are terminated.

3These deadlines may be extended under the governing statute.

4This will take place only in the event of ITA final affirmative determinations.

5This will take place only in the event of ITA and ITC final affirmative determinations.

(See ITT's Online Archives 12030815 for summary of the ITA's receipt of the petition underlying the initiation of this investigation.)

AD notice of initiation (FR Pub 03/27/12) available here.

CV notice of initiation (FR Pub 03/27/12) available here.

ITA fact sheet available here.