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Commerce Preliminarily Finds Subsidization of PC Wire Strand from China
Oct. 28, 2009
The U.S. Department of Commerce announced on October 27 its affirmative preliminary determination in the countervailing duty investigation on imports of prestressed concrete steel wire strand from P.R. China.
Merchandise covered by this investigation consists of prestressed concrete steel wire strand that is a collection of wire rod bars, typically covered with an epoxy material and primarily used in concrete construction applications. The wire strand is currently classifiable under the subheadings 7312.10.3010 and 7312.10.3012 of the Harmonized Tariff Schedule of the United States.
Commerce preliminarily determined that Chinese producers/exporters of that product have received net countervailable subsidies up to 12.06%. Mandatory respondents Fasten Group Import & Export Co., Ltd. and Xinhua Metal Products Co. received preliminary subsidy rates of 7.53 and 12.06%, respectively. All other producers/exporters received a subsidy rate of 9.80%.
Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.
As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond on imports of that product from China.
In 2008, imports of prestressed concrete steel wire strand from China were valued at an estimated $178 million.
Commerce is currently scheduled to issue its final determination in January 2010. If it makes an affirmative final determination, and the U.S. International Trade Commission makes an affirmative final determination that imports of such wire strand from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue a countervailing duty order.
Petitioners for this investigation are American Spring Wire Corp., Ohio; Insteel Wire Products Co., N.C.; and Sumiden Wire Products Corp., Tenn.