Commerce Preliminarily Finds Composite Panels for Semi Trailers Subject to AD/CV Duties on Corrosion-Resistant Steel
The Commerce Department proposed to find composite panels consisting of corrosion-resistant steel sheets bonded to a plastic foam core are subject to antidumping and countervailing duties on corrosion-resistant steel products (CORE) from China (A-570-026/C-570-027), in a preliminary scope ruling issued July 27. The agency said the composite panels, which are intended for use on semi-trailer enclosures, have the same physical characteristics, customer expectations and advertising as corrosion-resistant steel. Comments on the preliminary ruling are due Aug. 16.
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Stoughton Trailer had requested the scope ruling. As imported, the composite panel consists of two pieces of corrosion-resistant steel referred to as top and bottom skins, bonded to a core of high-density foamed polyethylene (HDPE). Stoughton had argued the AD/CV duty orders on corrosion-resistant steel aren’t intended to cover products subjected to complex manufacturing processes, and that the panels exceed maximum carbon content requirements based on the total weight of the panels, including the HDPE core.
Commerce found the written scope and other materials associated with the original AD/CV duty investigations on CORE did not fully resolve the matter. CORE subjected to further processing is covered by the scope of duties, and Stoughton admitted the steel sheets included in the panels meet the scope’s definition of subject corrosion-resistant steel, Commerce said. The agency determined to conduct a full scope ruling, considering whether the composite panels should be covered in the scope considering their physical characteristics, expectations of the ultimate consumer, ultimate use, channels of trade and advertising.
Considering their physical characteristics, Commerce preliminarily found that, while the composite panels differ from CORE by weight because of their plastic center, “CORE and composite panels are similar because the composite panels share the same essential characteristic with CORE, that of steel sheets that have a corrosion-resistant coating.” Commerce also found consumer expectations were the same in that consumers were interested in the panels’ corrosion-resistant properties. Advertising materials also highlight the panels’ corrosion-resistant steel skins, the agency said.
On the other hand, Commerce found it could not rule either way on the ultimate use, given that composite panels are uniquely suited to semi trailers based on their light weight. CORE and composite panels are also sold by different groups of companies, Commerce said. Nonetheless, “based on the totality” of its criteria, Commerce preliminarily found the composite panels are subject to AD/CV duties on corrosion-resistant steel.
Email ITTNews@warren-news.com for a copy of this scope ruling.