China Steel Wire Rod: Rates Skyrocket in Final CV Determination

The Commerce Department issued its final affirmative countervailing duty determination on carbon and certain alloy steel wire rod from China (C-570-013) (here). Although this final determination takes effect Nov. 19, suspension of liquidation has been lifted since Nov. 5, and Commerce will only require CV duty cash deposits on future entries if it issues a CV duty order.

(Commerce also issued a final affirmative determination in the companion antidumping duty investigation (see 1411180012).

Suspension of Liquidation Now Retroactive 90 Days for All Chinese Cos.

Commerce continued to find "critical circumstances" for Hebei Iron & Steel and all other Chinese companies except Benxi, because they allegedly ramped up sales of subject merchandise in the U.S. during the run-up to the preliminary determination in an attempt to get in as much product as possible before duties were imposed. Commerce is now changing course and applying that critical circumstances finding to Benxi, too. As such, it will order CBP to continue to retroactively suspend liquidation for all subject merchandise from China, including from Benxi, back to April 9, the date 90 days prior to the preliminary determination.

CV Susp/Cash Deposit thru Nov. 4

Commerce will instruct CBP to continue the suspension of liquidation of entries from April 9 through Nov. 4, the last day of the six-month "provisional measures" period during which Commerce can levy CV duties without an order in place.

CV Liq Reinstated and No CV Cash Deposit as of Nov. 5

Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits or bonds for subject merchandise entered on or after Nov. 5.

CV Liq to be Suspended Again & CV Cash Deposit Required if Order Issued

Commerce will issue a CV duty order, reinstate the suspension of liquidation, and require a cash deposit of estimated CV duties for entries of subject merchandise at the CV duty rates listed below if the International Trade Commission issues a final affirmative injury determination (due by Dec. 26).

*Includes Benxi Beiying Iron & Steel Group Import & Export Corp.; Benxi Beiying Iron & Steel (Group) Co. Ltd.; Benxi Steel Group Corporation; Beitai Iron & Steel (Group) Co., Ltd.; Benxi Northern Steel Rolling Co., Ltd.; Benxi Beifang Gaosu Steel Wire Rod Co., Ltd.; Benxi Beitai Gaosu Steel Wire Rod Co., Ltd.; Benxi Northern Steel Co., Ltd.; Benxi Beifang Second Rolling Co., Ltd.; Benxi Beitai Ductile Iron Pipes Co., Ltd.; Benxi Iron and Steel (Group) Metallurgy Co., Ltd.; Benxi Iron and Steel (Group) Real Estate Development Co., Ltd.; Bei Tai Iron and Steel Group Imp. and Exp. (Dalian) Co., Ltd.; and Bengang Steel Plate Co., Ltd.

(Note that there is no CV duty liability (i.e., CV duties will never be assessed on entries) during the "gap period" of Nov. 5 until the date an ITC final affirmative injury determination is published in the Federal Register.)

(The period of investigation is 01/01/13 -- 12/31/13. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 14070712 for summary of the preliminary determination of this investigation.)

AD/CVD Operations contact -- Rebecca Trainor (202) 482-4007

(Federal Register 11/19/14)