King & Spalding's Trade & Manufacturing Alert: United States Imposes Duties Against Unfairly Traded Imports Of Non-Oriented Electrical Steel

December 02, 2014


On November 6, the U.S. International Trade Commission (Commission) determined that imports of non-oriented electrical steel (NOES) from China, Germany, Japan, Korea, Sweden, and Taiwan have materially injured the sole U.S. producer of NOES – AK Steel Corporation (AK Steel). As a result, countervailing duties will be imposed on imports of NOES from China and Taiwan, and antidumping duties will be imposed on imports of NOES from all six subject countries.

[by Clint Long | December 2014 | M&T News]

AK Steel filed a petition against imports of NOES from China, Germany, Japan, Korea, Sweden, and Taiwan on September 30, 2013. AK Steel secured an affirmative preliminary determination at the Commission in late 2013. In March 2014, the U.S. Department of Commerce (Commerce) preliminarily determined that Chinese and certain Taiwanese producers received countervailable subsidies, and in May 2014 Commerce determined that imports from all six subject countries were sold in the United States at less than fair value.
In October 2014, Commerce made a final determination that Chinese and Taiwanese producers received countervailable subsidies. Commerce calculated countervailing duty rates of 158.88 percent for Chinese producers and 8.80 to 17.12 percent for certain Taiwanese producers. Commerce also found that imports of NOES from all six subject countries were being dumped and calculated significant antidumping duty rates: 407.52 percent for China, 86.29 to 98.84 percent for Germany, 135.59 to 204.79 percent for Japan, 6.88 percent for Korea, 98.46 to 126.72 percent for Sweden, and 27.54 to 52.23 percent for Taiwan.
In order for the duties to take effect, however, an affirmative determination of present or threatened material injury was necessary. The Commission found present injury by a vote of 4-1. On the day of the affirmative vote, AK Steel released a statement applauding the Commission's affirmative determination. James L. Wainscott, Chairman, President, and Chief Executive Officer of AK Steel, said: "Now that importers must pay duties to offset the unfair prices and distortive subsidies found by the Commerce Department, our NOES operations will have an opportunity to compete on a level playing field for the first time in many years." AK Steel was represented by King & Spalding in this case.

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