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Germany NOES: Prelim AD Cash Deposit Rates Take Effect; Retroactive for Some

The Commerce Department made a preliminary affirmative antidumping determination that non-oriented electrical steel (NOES) from Germany (A-428-843) is being sold in the U.S. at less than fair value. The agency found "critical circumstances" for CD Walzholz and Thyssenkrupp, and will impose retroactive AD duty cash requirements on entries from those companies effective Feb. 21. For all other Germany companies, AD duty cash deposit requirements will take effect May 22.

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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 for Some, Imposes Retroactive Cash Deposits

Commerce made a finding that CD Walzholz and Thyssenkrupp 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 these two 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entries of subject merchandise from Germany produced or exported by CD Walzholz and Thyssenkrupp that are entered, or withdrawn from warehouse, for consumption on or after Feb. 21. For all other companies, it will direct CBP to suspend liquidation and collect cash deposits beginning with entries on May 22. The preliminary AD cash deposit rates for German companies are as follows:

Manufacturer/ExporterAD Rate
CD Walzholz98-84%
Thyssenkrupp Electrical Steel EBG GMBH98.84%
All Others86.29%

(The period of investigation is 07/01/12 - 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 -- Patrick O'Connor (202) 482-0989

(Federal Register 05/22/14)