China, Japan and Sweden NOES: Prelim AD Cash Deposit Rates Take Effect; Retroactive 90 Days
The Commerce Department made a preliminary affirmative antidumping determination that non-oriented electrical steel (NOES) from China (A-570-996), Japan (A-588-872) and Sweden (A-401-809) is being sold in the U.S. at less than fair value. Due to a finding of "critical circumstances," the agency will impose retroactive AD duty cash requirements on entries of NOES from China, Japan and Sweden effective Feb. 21.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Amended Scope Has New Exception to AD Duties
In response to comments from parties to the investigation, Commerce added the following language to the scope of AD duties to lower the minimum amount of silicon in NOES to 1% (from 1.25%), and specify that "NOES has a surface oxide coating, to which an insulation coating may be applied." It is also amending the scope to add the following exemption from AD duties for laminations and cores:
"Excluded from the scope of these investigations are flat-rolled products not in coils that, prior to importation into the United States, have been cut to a shape and undergone all punching, coating, or other operations necessary for classification in Chapter 85 of the Harmonized Tariff Schedule of the United States (HTSUS) as a part (i.e., lamination) for use in a device such as a motor, generator, or transformer."
Commerce Finds Critical Circumstances; Cash Deposits Retroactive 90 Days
Commerce made a finding that Chinese, Japanese and Swedish companies increased their NOES exports to the U.S. in the run up to the preliminary determination, in an attempt to get in as much product as possible before the imposition of AD duties. This "critical circumstances" finding by the agency allows it to retroactively suspend liquidation for all Chinese, Japanese and Swedish companies back to 90 days before the preliminary determination, i.e. Feb. 21.
AD Suspension of Liquidation and Cash Deposit Requirements
Commerce will instruct CBP to suspend liquidation for all entries of subject merchandise from China, Japan and Sweden that are entered, or withdrawn from warehouse, for consumption on or after Feb. 21. The preliminary AD cash deposit rates for Japanese companies are as follows:
| Manufacturer/Exporter | AD Rate |
|---|---|
| JFE Steel Corporation | 204.79% |
| Sumitomo Corporation | 204.79% |
| All Others | 135.59% |
Preliminary AD duty cash deposit rates for Swedish companies are as follows:
| Manufacturer/Exporter | AD Rate |
|---|---|
| Surahammars Bruks AB | 126.72% |
| All Others | 98.46% |
In its China investigation, Commerce did not find any companies demonstrated independence from government control, so it assigned all to the China-wide entity. The preliminary AD duty cash deposit rate for Chinese companies is as follows (adjusted for export subsidies):
| Manufacturer/Exporter | AD Rate |
|---|---|
| China-wide Entity | 405.95% |
(The period of investigation for Japan and Sweden is 07/01/12 - 06/30/13, and the period of investigation for China is 01/01/13 - 06/30/13. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 13111512 for summary of initiation of this investigation, and 13101707 for the underlying petition.)
AD/CVD Operations contact -- Sandra Dreisenstock (202) 482-0768 (China); Thomas Martin (202) 482-3936 (Japan); and Drew Jackson (202) 482-4406 (Sweden).
The notice for Japan and Sweden is available (here) (Federal Register 05/22/14)
The notice for China is available (here) (Federal Register 05/22/14)