Petition Filed for New AD/CV Duties on Steel Racks From China
A coalition of U.S. manufacturers is seeking the imposition of antidumping and countervailing duties on steel racks from China, the group said in a petition filed June 19 with the Commerce Department and the International Trade Commission. Commerce will now decide whether to begin AD/CVD investigations that could eventually result in the assessment of AD/CV duties. The petition was filed by the Coalition for Fair Rack Imports, which counts nine companies as members.
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The earliest date that liquidation could be suspended and countervailing duty cash deposits required in connection with these investigations is July 10, 2018, an update from law firm Grunfeld Desiderio said. For antidumping duties, it's July 31, 2018. Both of these estimates presume a finding of "critical circumstances" with retroactive suspension of liquidation 90 days prior to Commerce's preliminary determination, and no extensions of Commerce's deadlines.
Proposed Scope
The petition proposes the following scope for the investigations:
The merchandise covered by this investigation is steel racks and parts thereof, assembled or unassembled. Steel racks are racks made of steel of dimensions and configurations that can be adjusted as required, with or without locking tabs or slots, and with or without bolted, clamped, or welded connections, including any of the following: uprights, posts, columns, braces, frames, beams, arms, locking devices and rails.
A steel rack is a structure typically made from cold-formed or hot-rolled steel structural members and includes, but is not limited to, components such as plates, rods, angles, shapes, sections and tubes. Welding, bolting and clipping are the typical methods of assembly. Connections may also be made with locking devices such as clips, end plates and beam connectors. Steel racks may be made to ANSI MH16.1 or ANSI MH16.3 standards. All steel racks and parts thereof meeting the physical description set out herein are covered by the scope of this investigation, whether or not produced according to a particular standard.
The vertical components of steel racks may be referred to as uprights, posts or columns, and may be connected with horizontal or diagonal braces to form upright frames. A typical storage configuration comprises upright frames perpendicular to the aisles that are independently adjustable, with positive-locking beams parallel to the aisle and spanning between the upright frames, and braces designed to support unit loads between the beams. A cantilever rack consists of uprights running parallel to the aisle and cantilever beams or arms connected to the uprights and running perpendicular to the aisle rather than spanning two upright frames.
The scope includes all steel racks and parts thereof meeting the description above, regardless of: (1) dimensions, weight, strength, gauge or load rating; (2) vertical upright or frame type (including structural, roll-form or other); (3) horizontal support or beam/brace type (including but not limited to structural, roll-form, slotted, unslotted, Z-beam, C-beam, L-beam, step beam, cantilever beam, and cargo rack); (4) number of supports; (5) number of levels; (6) surface coating, if any (including but not limited to paint, epoxy, powder coating, zinc or other metallic coatings); (7) shape (including but not limited to rectangular, square, corner and cantilever); (8) the method by which the vertical and horizontal supports connect (including but not limited to locking tabs or slots, bolting, clamping and welding); and (9) the inclusion or not of moving components (including but not limited to rails, wheels, rollers, tracks, channels, carts and conveyors).
Steel racks may be referred to as pallet racks, storage racks, stacker racks, retail racks, pick modules, selective racks or cantilever racks. Steel racks that incorporate moving components may also be referred to as pallet-flow racks, carton-flow racks, push-back racks, movable-shelf racks, drive-in racks and drive-through racks.
Subject merchandise includes material matching the above description that has been finished, assembled or packaged in a third country, including by coating, painting, assembling, attaching to, or packaging with another product, or any other finishing, assembly or packaging operation that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the steel racks and parts thereof.
Steel racks and parts thereof are also included in the scope of this investigation whether or not imported attached to, or in conjunction with, other parts and accessories such as wire decking, nuts and bolts. If steel racks and parts thereof are imported attached to, or in conjunction with, such non-subject merchandise, only the steel racks and parts thereof are included in the scope.
Specifically excluded from the scope of this investigation are any products covered by Commerce’s existing antidumping and countervailing duty orders on boltless steel shelving units prepackaged for sale from the People’s Republic of China. See Boltless Steel Shelving Units Prepackaged for Sale From the People’s Republic of China: Antidumping Duty Order, 80 Fed. Reg. 63,741 (October 21, 2017); Boltless Steel Shelving Units Prepackaged for Sale From the People’s Republic of China: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order, 80 Fed. Reg. 63,745 (October 21, 2017).
Merchandise covered by this investigation is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheadings: 7326.90.8688 and 9403.20.0080. Subject merchandise may also enter under subheadings 7308.90.3000, 7308.90.6000, 7308.90.9590 and 9403.20.0090. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due July 9.
Email ITTNews@warren-news.com for a copy of the petition.