US may levy duties on electrical steel products from China

The U.S. Commerce Department on Wednesday announced its preliminary affirmative determination in the countervailing duty (CVD) investigation against imports of grain-oriented electrical steel (GOES) from China, signaling that it may pose punitive duties on the products.

The department said that Chinese producers and exporters of GOES had received countervailing subsidies of 49.15 percent.

The Commerce launched antidumping (AD) duty and CVD investigations against imports of GOES from China on Oct. 24, 2013, alleging that these products were sold at less than fair value in the U.S. market, with a dumping margin of 159.21 percent and additional subsidies.

The department is scheduled to make its both final determinations in July 2014, unless the statutory deadline is extended.

Punitive duties would be imposed after both the Commerce Department and the U.S. International Trade Commission (USITC) make affirmative final rulings. The USITC is scheduled to make its

final determination in September 2014.

The investigations are in response to a request from two steel producers in the United States, AK Steel Corporation based in the state of Ohio and Allegheny Ludlum based in the state of Pennsylvania, and the United Steelworkers, an industrial labor union of steelworkers based in Pittsburgh, a city in Pennsylvania.

In 2013, imports of GOES from China were at an estimated 5.4 million U.S. dollars, according to the Commerce Department.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.