WASHINGTON, June 27, 2016 /PRNewswire/ -- The U.S. Department
of Commerce published in the Federal Register today its
preliminary affirmative determination of critical circumstances
regarding imports of stainless steel sheet and strip from
the People's Republic of China, a
decision that was applauded by the domestic industry.
On February 12, 2016, AK Steel
Corporation (NYSE: AKS), Allegheny Ludlum, LLC d/b/a ATI Flat
Rolled Products, an Allegheny Technologies company (NYSE: ATI),
North American Stainless, and Outokumpu Stainless USA, LLC ("Petitioners") filed antidumping and
countervailing duty petitions with the Commerce Department and U.S.
International Trade Commission seeking relief from unfairly traded
imports of stainless steel sheet and strip from China that are causing material injury to the
domestic industry.
On May 6, 2016, the Petitioners
requested that the Commerce Department make an expedited
affirmative preliminary finding that critical circumstances exist
with regard to imports of stainless steel sheet and strip from
China. Critical circumstances are found where there has been
a "massive" surge in imports during a "relatively short period"
after the filing of petitions seeking relief from unfairly traded
imports.
"We are encouraged that the Commerce Department has issued an
expedited affirmative preliminary determination that critical
circumstances exist with respect to imports of stainless steel
sheet and strip from China,"
commented John Herrmann, of
Kelley Drye & Warren LLP,
counsel to the Petitioners. "This action will help discourage
efforts by unscrupulous Chinese producers and exporters to rush
product into the United States in
order to avoid the likely imposition of provisional countervailing
duties in mid-July," said Mr. Herrmann.
As the result of this preliminary determination, in the likely
event it reaches an affirmative preliminary countervailing duty
determination on July 11, 2016, the
Commerce Department will instruct U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of stainless
steel sheet and strip from China
that are imported into the United
States on or after the date that is 90 days prior the date
of publication in the Federal Register of the affirmative
preliminary countervailing duty determination. At the same
time, the Commerce Department will instruct CBP to require U.S.
importers to post a cash deposit equal to the estimated preliminary
subsidy rates reflected in the preliminary countervailing duty
determination. While the Commerce Department's preliminary
critical circumstances determination was made in connection with
the on-going countervailing duty investigation, the determination
is expected to affect all U.S. imports of stainless steel sheet and
strip from China, and a similar
preliminary critical circumstances determination is expected in the
Commerce Department's on-going antidumping investigation.
Imports of stainless steel sheet and strip from China increased by 133 percent between 2013
and 2015. China was the
largest supplier of stainless sheet and strip to the U.S. market in
2015, accounting for almost half of all imports. This surge
in imports of stainless steel sheet and strip from China was driven by low import pricing that
caused U.S. producers to lose significant sales and profits.
Stainless steel sheet and strip is a flat-rolled alloy steel
containing, by weight, 1.2 percent or less of carbon and 10.5
percent or more of chromium, with or without other elements.
Stainless steel sheet and strip is used in consumer and
industrial applications where the corrosion resistance, heat
resistance, or design characteristics of stainless steel are
required.
The petitioners are represented in these actions by Kathleen W. Cannon, David A. Hartquist, John
M. Herrmann, and Grace W. Kim
of the law firm Kelley Drye & Warren LLP.
Contact: John Herrmann
202-342-8488
jherrmann@kelleydrye.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/domestic-producers-applaud-commerce-departments-preliminary-critical-circumstances-determination-in-subsidy-investigation-of-stainless-steel-sheet-and-strip-from-china-300290571.html
SOURCE Kelley Drye & Warren
LLP