Commerce Preliminarily Finds Subsidization of Wire Decking from China
November 6, 2009On November 3, the Department of Commerce (Commerce) announced its affirmative preliminary determination in the countervailing duty investigation on imports of wire decking from China.
Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.
Commerce preliminarily determined that Chinese producers/exporters have received net countervailable subsidies ranging from 2.02% to 437.73%.
Mandatory respondents, Dalian Huameilong Metal Products Co., Ltd and Dalian Eastfound Metal Products, received net subsidy rates of 2.02% and 3.13%, respectively.
In this investigation, there are a significant number of companies that did not complete Commerce’s Quantity and Value Questionnaire. As a result, these companies will receive an adverse rate of 437.73% for non-responsiveness.
All other Chinese exporters received a net subsidy rate of 2.58%.
As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposit or bond based on these preliminary rates.
The petitioners for this investigation are AWP Industries, Inc. (Ky.); ITC Manufacturing, Inc. (Ariz.); J&L Wire Cloth, Inc. (Minn.); Nashville Wire Products Mfg. Co., Inc. (Tenn.); and Wireway Husky Corporation (N.C.).
The product covered by this investigation is welded-wire rack decking produced from carbon or alloy steel wire that has been welded into a mesh pattern. The wire mesh is reinforced with structural supports and designed to be load bearing. Wire decking reinforced with structural supports is designed generally for industrial and other commercial storage rack systems.
The product covered by this investigation is currently classified in Chapter 94 of the Harmonized Tariff Schedule of the United States (HTSUS) under Subheading 9403.90.8040. Wire decking may also be classified in Chapter 72 under Headings 7217.10, 7217.20, 7217.90, 9403.20.0020, and 9403.20.0030. While the HTSUS subheading is provided for convenience and customs purposes, Commerce’s written description of the subject merchandise governs the scope of these investigations.
From 2006 to 2008, imports of wire decking from China increased 49% by value; they amounted to an estimated $317 million in 2008.
Commerce is currently scheduled to make its final determination in March 2010. If Commerce makes an affirmative final determination, and the U.S. International Trade Commission (ITC) makes an affirmative final determination that imports of wire decking from China materially injures, or threaten material injury to, the domestic industry, Commerce will issue a countervailing duty order.
For a fact sheet, visit the International Trade Administration’s Web site.
